Jersey-based provider of digital marketing services XLMedia Plc revealed in a statement that it expects to report a revenue increase estimated to be about 43% due to “strong organic growth” over the year and M&A activity. The shares rose by more than 10% after the company announced its projection for 2014 revenue.
According to XLMedia’s statement, its 2014 annual revenue is expected to increase by 43% in comparison to the results reported a year ago and reach $49.5 million. As reported by the company, the results were due to the better performance of the provider in markets like the U.K. and the U.S.
The Chief Executive Officer of XLMedia – Ory Weihs – commented on the company’s performance, saying that it continues “to make excellent progress” across the strategic milestones and priorities set by the provider. CEO Weihs also shared that he was looking forward to updating the market at their annual results, which are expected to be presented in March 2015.
The e-gaming marketing company shared in a trading update for the 12 months ended December 31st 2014, and projected that its annual group revenue would reach no less than $49.6 million with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $16.6 million. This is a 24% increase compared to the result posted a year ago.
The trading results of the company were said to have been benefited from its organic growth. The recent purchases made by XLMedia, are also considered to have a positive impact on the company’s performance.
Two large acquisitions were completed by the digital marketing services provider in 2014. These purchases included an August deal for an unnamed sports betting affiliate, which was estimated to about $6.7 million. Another deal was struck in September 2014, when XLMedia also purchased ExciteAd Digital Marketing – a marketing firm oriented towards mobile gaming – in a deal was worth $19 million.
The acquisitions were described by the company as successful. The firm explained that both of them had since performed ahead expectations. XLMedia became publicly traded company in March last year, when its initial public offering was carried out.
Now it seems that the Jersey-based e-gaming marketing firm is plucking the fruits of its hard work, which emphasizes on its significant strategic progress over the past year. XLMedia, which operates across several vertical markets within the online gaming sector, plans to expand its business and diversify its operations over 2015.
Social gaming market, which involves gambling through a variety of social networks like Facebook Inc. and Twitter Inc., has also posted great results considering the fact that it managed to increase its revenue.
