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Shares in AIM-listed digital marketing services firm XLMedia (LON:XLM) dropped by 20% to 60p (as of 13:15 BST) as pre-tax profits for the six months ended 30th June tumbled 21.5%. Revenues for the period were down by 10% despite positive developments in the US gambling market as regulatory changes in key markets impacted the business.
CEO Ory Weihs commented: “This year has proven to be challenging for both XLMedia and the industry as a whole, as the gaming industry changes and regulates. However, this does result in the Group having greater visibility, more sustainable revenues and stable earnings. Whilst we expect this disruption to continue in the midterm, we remain committed to our stated strategy, focusing on publishing. We continue to diversify our asset base, specifically developing our US gambling strategy and the personal finance sector, in which we continue to make good progress with this sector now accounting for 14% of the Group’s revenues.
“As my last address as CEO of XLMedia, I would like to wish Stuart every success and firmly believe that with the support of the Board and management team he will lead the business back to sustainable growth“.