XLMedia Plc · OTC:XLMDF
XLMedia — H1 2016 Earnings Presentation
25 slides from XLMedia's earnings presentation, September 2016
Slide 1: Performance Marketing
September 2016 Technology based PERFORMANCE MARKETING
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION (THE “PRESENTATION ”) WHICH HAS BEEN PREPARED BY 3. you are not resident in, or a citizen of, a Prohibited Territory; and XLMEDIA PLC. (THE “COMPANY) IS FOR INFORMATION PURPOSES ONLY AND DOES NOT 4. (v) you will not forward, reproduce or otherwise disclose the contents o
Slide 3: Overview
OVERVIEW Online performance marketing company Significant market opportunities • We attract paying users from multiple online & • Demand for digital marketing accelerating mobile channels and direct them to online businesses • Performance models are preferred by advertisers • A performance based bus
Slide 4: Our Business Model
OUR BUSINESS MODEL SALES Conversion Publishing 42% * Media XLMedia’s 47%* Performance Informational based payment Online users: portals network XLMedia’s Web, mobile, self funded Lifetime Revenue social, … campaigns share / CPA / CPI /… for online, mobile, social Partner traffic network * XLMedia’s
Slide 5: Digital Advertising
DIGITAL ADVERTISING Digital Media consists of posting different forms of advertising in the online and mobile space Advertisers Publisher Spend on advertising Networks Run online and marketing Match supply and demand business/content websites Demand for Bid/Ask Supply of ad ad space ad-tech platform
Slide 6: Publishing
PUBLISHING $35,000 30,298 • XLMedia owns a network of informational websites, $30,000 USD ‘000 mobile sites and apps 23,965 $25,000 $23,856 • Over 2,000 websites in 18 languages 21,332 18,801 Informational websites refer potential customers to $20,000 $18,345 • $17,809 web and mobile online business
Slide 7: Publishing – Optimization Cycle
PUBLISHING – OPTIMIZATION CYCLE Big Data ETL (Gather data) Optimising Accumulate all data Conversions, visits, A/B Testing, Brands, collected from clicks, registrations, Content… difference sources deposits…..per element Using proprietary tools for analysis and iterative testing Country / Brand / Cr
Slide 8: Website Ranking Worldwide
WEBSITE RANKING WORLDWIDE In key territories, Jan 2016 Scandinavia UK Other Europe In the top three Two websites ranked in the Ranked in the top three for positions for 10%-25% top three for most common 12%-20% of most casino of most casino related gambling market keywords related keywords keywords
Slide 9: Organic Growth and Asset Acquisitions
ORGANIC GROWTH AND ASSET ACQUISITIONS • Publishing segment enjoys benefits of scale where we can identify targets for acquisition and then improve performance using our know how, trained staff, technology infrastructure, content writers and strategy, etc. • These all demonstrate the benefits of scal
Slide 10: Media
MEDIA $50,000 $45,777 $45,000 • XLMedia acts as an advertiser running $40,000 USD ‘000 thousands of simultaneous self-funded $35,000 campaigns, in different verticals $30,000 $24,223 • Our customers pay based on performance $25,000 $20,632 • XL deploys proprietary technology to manage $20,000 $15,41
Slide 11: Media – Optimization Cycle
MEDIA – OPTIMIZATION CYCLE Big Data Proprietary data Optimising enabling XLM to Gather data optimise campaigns Using proprietary tools for analysis and iterative testing optimising Country / Brand / Creative / Offer / Device / Content / entry source ….. Conversion XLM XLM self-funded Bid on ads Sele
Slide 12: Partner Network
PARTNER NETWORK • Currently manages over 300 independent affiliate partners who drive $14,000 $13,145 traffic through XLMedia $12,000 • All traffic generated by affiliates to gambling operators triggers revenue $10,000 to XLMedia USD ‘000 $8,000 $6,123 • Affiliates benefit from XLMedia’s ongoing clo
Slide 13: Our Technology
We rely on our in-house systems to optimize and operate thousands of OUR TECHNOLOGY campaigns in an efficient and effective way • A consolidated management system across all websites, enabling fast and Palcon dynamic integration and deployment of new features and widgets Content management system •
Slide 14: Case Study – Palcon
CASE STUDY – PALCON Significant Improvement of Users’ • Palcon is our content management system Engagement on Mobile Devices The Platform • It allows for the central management of our 87% improvement for the major websites using leading edge technology, asset following migration to Palcon advanced w
Slide 15: Strong Financial Track Record
STRONG FINANCIAL TRACK RECORD $89.2 Adjusted EBITDA ($ m) Revenues ($ m) * IFRS $50.7 $51.2 $34.5 $28.5 $26.1 $20.9 $17.0 $17.7 $11.2 $12.5 $13.3 $8.8 $6.3 $2.2 $4.0 $0.5 $0.7 2008 2009 2010 2011 2012 2013 2014 2015 2016 (H1) Employees: 9 Employees: 24 Employees: 40 Employees: 40 Employees: 197 Empl
Slide 16: Revenues Diversification – H1 2016
REVENUES DIVERSIFICATION – H1 2016 Revenues diversification – Revenues diversification – Revenues diversification – Revenues Per users’ geography1 products customers business model Customer A 7% Customer B 6% North America, Customer C CPI, 21% Gaming, 11% 6% 21% Other Europe, Customer D 25% 6% Other
Slide 17: The Future of Online Marketing
THE FUTURE OF ONLINE MARKETING Mobile and tablet advertising growth Growth of Internet advertising revenues • Mobile advertising is expected to grow by an average of 38% • Global online advertising spend increased from $52bn to a year between 2014 and 2017 $147bn between 2007 and 2014 (16.0% CAGR),
Slide 18: Growth Strategy
GROWTH STRATEGY Continue to expand the Group’s operational reach into new geographies and verticals • Current skill set enables Group to target additional verticals • Media: Leverage demand for online marketing services within US market • Publishing: Continue to grow market share in current territor
Slide 19: Summary and Outlook
SUMMARY AND OUTLOOK H1 2016: Technology progress Foundations laid for future growth • Continued development of in-house systems • Technology investments and staff are in place to • Awarded Facebook Marketing partner for technology support expansion for media as well as continue organic growth in pub
Slide 20: Any Questions?
Any Questions?
Slide 21: Appendix
Appendix 21 17 May 2018
Slide 22: Experienced Senior Leadership
EXPERIENCED SENIOR LEADERSHIP INBAL LAVI CEO (ISRAEL) • 12 years' experience in the online marketing industry LIAT HELLMAN CFO (ISRAEL) • Diverse background and expertise in marketing • Over 18 years’ experience in publicly strategy, operations and P&L management, including traded companies heading
Slide 23: Income Statement
2015 INCOME STATEMENT 3% Item (Thousands $) H1 2016 FY 2015 19% 33% Unaudited Audited Revenues 51,180 89,219 Cost of revenues 24,199 48,143 23% Gross Profit 26,981 41,076 22% Operating Expenses 11,203 18,116 H1-2016 Operating Profit 15,778 22,960 3% Total adjusted EBITDA* 17,672 28,442 17% % Adj. EB
Slide 24: Cash Flow Statement
CASH FLOW STATEMENT $ '000 H1 2016 FY 2015 Operating Activities Net Income 13,561 20,200 Depreciation & Amortisation 1,511 3,775 Cost of share based payments 472 839 Changes in Working Capital, tax and finance expenses (3,939) 3,486 Finance income from financial derivatives (245) 99 Cash Flow from O
Slide 25: Balance Sheet 30 June 2016
BALANCE SHEET 30 June 2016 $ '000 Current assets: Current liabilities: Trade payables 8,960 Cash, cash equivalents and short term investments 42,909 Contingent consideration payable 3,597 Trade receivables 15,715 Other liabilities and accounts payable 9,681 Other accounts receivable 2,126 Total curr