27th Apr 2021 10:15
(Alliance News) - XLMedia PLC on Tuesday said narrowed impairment losses helped it to swing to profit in 2020 but revenue was hurt by the coronavirus pandemic and the closure of its remaining Media unit operations.
The London-based marketing company said its revenue was USD54.8 million for 2020, down from USD79.7 million recorded the year before. But it swung to pretax profit of USD1.1 million from USD57.7 million loss in 2019, as impairment loss narrowed to USD955,000 from USD81.4 million.
XLMedia explained that its revenue was hurt due primarily to the closure of its remaining Media operations, the impact of a search ranking penalty imposed by Google on a large number of casino sites and the initial impact of the Covid-19 pandemic on the global sporting calendar.
Adjusted earnings before interest, tax, depreciation and amortization for 2020 was USD12.2 million, a decrease of 64% on the previous year. This decrease in the Ebitda was due mainly to the reduction in revenue.
"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 Chief Executive Stuart Simms.
"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," added Simms.
XLMedia shares were trading 12% lower in London on Tuesday at 56.25 pence each.
By Evelina Grecenko; [email protected]
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