17th Sep 2014 09:12
LONDON (Alliance News) - Shares in XLMedia PLC fell Wednesday, after the company reported a fall in first half profit, despite an increase in revenue, on the back of higher costs across the business as it continues to invest in its future.
The digital performance marketing services provider posted a lower pretax profit of USD4.6 million for the six month to June 30, down from USD6.6 million in the first half of 2013.
It said its profit fall was due to increased costs in the business, including higher general and administrative expenses, as well as marketing and research and development costs, all of which ate into its gross profit.
This more than offset an increase in revenue to USD19.9 million, up from USD16.0 million a year earlier, which was driven by strong sales momentum in its core European markets.
The company said its maintains a positive outlook for the rest of 2014 and beyond, citing a strong acquisition pipeline. Signalling its confidence, the company declared an interim dividend of USD0.0158 per share.
"Our investment across the business is now generating positive results. We have already made a strong start to the second half of the year and believe the business is now very well placed for the remainder of 2014. It is this continued positive momentum which underpins our confidence in meeting market expectations for the full year and supports our dividend policy," said Chief Executive Ory Weihs in a statement.
Earlier this month, XLMedia acquired social and mobile gaming marketing company ExciteAd Digital Marketing Ltd for up to USD19 million in cash and shares. Prior to that it made bolt-on acquisitions including a Scandinavian website network and a UK sports betting website.
XLMedia shares were trading 6.7% lower Wednesday morning at 56.44 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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