Revenue fell to $54.8m in 2020, down from $79.7m the year before
XLMedia (LON:XLM) said it performed relatively well during 2020 as it revealed its results for the year.
The online marketing company also said it is expecting to see a big upturn in its revenues for the coming year.
The AIM-listed group’s revenue fell to $54.8m in 2020, down from $79.7m the year before.
XLMedia said its results came down to a Google search ranking penalty in January, in addition to being impacted by the coronavirus pandemic which caused an estimated $2m a month, as sports events and activity in financial services were reduced.
EBITDA decreased to $12.2m from US$33.5m in 2019 while adjusted pre-tex profit fell to $4.5m from $25.3m the year before.
XLMedia just about swung to a pre-tax profit of $1.1m following a loss of $57.7m in 2019.
Cash and short-term investments stood at $13.9m at the end of the year, compared to $29.9m at the end of 2019.
The media firm said its revenue levels in January 2021 are catching up to where they were the year before, as the board is expecting a material improvement in revenues this year.
“We entered 2020 with strategic and operational clarity, only to find ourselves knocked off track in the short term by the unforeseen challenges of a Google penalty and the Covid-19 global pandemic. Even against this backdrop the business performed relatively well, and we made significant progress on the priorities of upgrading the asset portfolio and restructuring the organisation, which will drive performance over the longer term,” said Stuart Simms, the chief executive officer of XLMedia.
“Over the last few months, the company completed two significant acquisitions in the US Sports market. This is a very positive and material step in rebalancing the group, providing immediate scale in an attractive and high-growth, regulated market.”
“Completing the transformation of the business, including the overhaul of the systems supporting it and delivering the long-term operating structure to maximise growth will involve further significant investment in 2021. Notwithstanding this, our level of confidence in the business performance and recovery continues to grow and we have entered 2021 with positive momentum, which we expect to lead to revenue materially ahead of the previous year,” he added.
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