XL Media plots further acquisitions as revenues jump 47%

Online gaming marketing firm XL Media said it would look for further acquisition opportunities as bolt-on growth helped it surge to a 47% year-on-year increase in 2014 revenues following a “truly transformational” year.

The AIM-listed firm reported revenues of $50.7m (£34.2m) during the 12 months to 31 December 2014, leading to a 28% increase in adjusted EBITDA to $16.9m (£11.4m), and a net profit of $11.9m (£8m).

While XL Media reported strong organic growth, it also completed two major acquisitions during the year, including a deal for an unnamed sports betting affiliate in August for a fee worth approximately $6.7m.

In September the company also bought social and mobile gaming marketing firm ExciteAd Digital Marketing (EDM) for $19m, which XL said contributed $6m in revenues during the period.

Chief executive Ory Weihs said 2014 had been a “truly transformational” year for XL Media and the firm felt confident in its ability to execute its growth plans, which may include more M&A activity.

“We continue to develop our business to further capitalise on the substantial market opportunities that exist for performance based marketing services,” Weihs said.

“Our growth strategy includes expansion into new markets, adding more channels and verticals. We continue to invest in technology, offering a ‘best of breed’ service to our clients.

“While we maintain our strong organic growth we continue to evaluate acquisition opportunities,” he added.

The company broke down its revenues into publishing, media, and partner networks, which contributed $23,9m, $20.6m and $6.1m respectively.

The firm also noted that it had increased its footprint in regulated markets, including the UK and the US, and had expanded into new verticals such as social gaming.

XL Media’s share price dipped 2.43p to 68.57p after early morning trading.