Sale of Mobile subsidiary

RNS Number : 4408I

XLMedia PLC

08 August 2019

 

 8 August 2019

XLMedia PLC

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

Sale of Mobile subsidiary

XLMedia (AIM: XLM), a leading provider of digital performance marketing, provides the following update on strategic progress. As previously announced, the Group made a strategic decision to focus on its higher margin publishing activities and discontinue some of its media activities. As part of the implementation of this strategy, the Company announces the sale of Webpals Mobile Ltd. ("Mobile"), the Group's mobile apps marketing subsidiary. Mobile is focused on the promotion of apps which are not in the Group's core verticals of gambling and personal finance.

Mobile has been acquired by PLYmedia Israel (2006) Ltd, a company active in the ad-tech and online marketing industries. Under the terms of the agreement, Mobile will repay $1.9 million of inter-company balances to the Group on completion of the transaction.  There will be a final settlement to be made based on the assets and liabilities of Mobile as at completion following the preparation of completion accounts, which the Company expects to be immaterial.  In 2018, Mobile delivered nil contribution at EBITDA level. The net value of assets in the Group's consolidated balance sheet is nil following impairment charge recorded in 2018. The net proceeds from the sale will be used by the Group in the furtherance of its strategy of developing its publishing assets.

Chief Executive Officer of XLMedia, Ory Weihs, commented:

"The sale of Mobile marks an important step for our business as we focus our attention on our core publishing activities.  We remain committed to growing our Gambling & Personal Finance publishing networks, while continuing with complementary media activities, which we believe ideally places the Group to deliver sustainable and high margin growth."

For further information, please contact:

XLMedia plc Ory Weihs www.xlmedia.com	Via Vigo Communications
Vigo Communications Jeremy Garcia / Fiona Henson / Simon Woods www.vigocomms.com	Tel: [phone]
Cenkos Securities plc (Nomad and Joint Broker) Giles Balleny / Max Gould www.cenkos.com	Tel: [phone]
Berenberg (Joint Broker) Chris Bowman / Mark Whitmore / Simon Cardron www.berenberg.com	Tel: [phone]

 

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