Process for the disposal of assets

RNS Number : 4463P

XLMedia PLC

10 June 2020

 

10 June 2020

XLMedia PLC

("XLMedia" or the "Company" or the "Group")

Process for the disposal of assets

Today XLMedia (AIM: XLM), a global digital performance publisher, instructed Akur Capital to commence a process for the sale of the majority of its Finnish-facing Casino assets, along with certain other publishing sites.

This proposed disposal is in line with the Company's stated strategy of refining its publishing portfolio and refocusing on regulated and high-potential markets, to deliver more sustainable and predictable growth.

Any disposal proceeds from a successful conclusion over the coming months will be used, along with current balance sheet headroom, to expedite the Company's strategy through the acquisition and development of content-rich, highly engaging sites in regulated and high growth markets.

XLMedia has a clear transformation strategy, which will enable it to shape the future of the performance publishing industry.  As previously communicated, the Company has set three Strategic Goals:

· Consolidation of publishing assets

o  The Company will consolidate its range of publishing assets, focusing its resources on a core set of premium sites in its chosen markets.  XLMedia will seek to build stronger relationships with consumers through content-rich, engaging websites, underpinned by intelligent market-leading technology which enhances the yield from each interaction.  This rebalancing of the portfolio will be supported by organic investment, disposals and acquisitions.

· Investment in US Sports and Personal Finance

o  XLMedia has identified North America as a core target market, where it has already established a solid foothold in Personal Finance, led by content-rich websites which are gaining traction.  The Company will seek to further develop its Personal Finance presence and significantly increase its investment in the burgeoning US Sports market through partnerships and acquisitions.

· Further Investment in regulated markets

o  The Company is seeking to generate an increasing proportion of its revenue from more stable, regulated markets, both within current serviced verticals, such as gambling and personal finance and, over time, within additional target segments, where its core skills and scale can provide competitive advantage.

Stuart Simms, Chief Executive Officer of XLMedia, commented:

"XLMedia has set out a clear transformation strategy to deliver the next phase of growth.  We have already made significant progress with reshaping the organisation, reducing our cost base, strengthening the leadership team and building our core people skills and technological expertise.

The sale of our Finnish-facing casino assets will reduce the reliance on unregulated markets and accelerate the delivery of our strategy, providing additional capital for the acquisition of attractive assets in regulated and high growth markets, such as the burgeoning US sports market.

"I look forward to updating our key stakeholders over the coming months."

The information contained within this announcement (the "Announcement") is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this Announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

For further information, please contact:

XLMedia plc	[e-mail]
Stuart Simms, Chief Executive Officer
www.xlmedia.com
Akur Capital David Shapton Matthew Smith www.akur.co.uk Vigo Communications	Tel: [phone] Tel: [phone] Tel: [phone]
Jeremy Garcia
www.vigocomms.com
Cenkos Securities plc (Nomad and Joint broker)	Tel: [phone]
Giles Balleny / Max Gould
w ww.cenkos.com
Berenberg (Joint broker)	Tel: [phone]
Chris Bowman / Mark Whitmore / Simon Cardron
www.berenberg.com

 

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