XL Media focuses on social networks to drive mobile gains

XL Media focuses on social networks to drive mobile gains

Wednesday, July 22, 2015 Totally Gaming
CEO Ory Weihs wants to develop the company's mobile offering

XL Media will target growth in its social media offering throughout the remainder of the year after announcing a strong trading performance in the first six months of 2015.

Ory Weihs, the digital marketing operator’s chief executive, told TotallyGaming.com that the company has identified mobile as a key area of expansion, and this focus was a major factor in the purchase of a majority share in specialist Marmar Media last month.

XL Media said in a trading update this week that it is on target for impressive revenue growth of approximately 83 per cent for the financial year, but it is clearly aiming even higher.

“Our target is to continue to develop our business and continue our strong growth,” said Weihs. “As mobile advertising becomes a dominant factor in the advertising segment, XLMedia will continue to develop its in-house systems to support tracking, optimisation and advertising to mobile users.

“Social networks are a significant factor that drive mobile activity, and currently the majority of the company’s social gaming media activity is with mobile users. Integration of the recently acquired business is another target we will complete during this period.”

XL Media, which specialises in the online gaming sector, uses proprietary tools and methodologies to generate high value traffic for customers through content and search engine optimisation, digital media buying and its affiliate network.

The company paid $7.36m (€6.73m) in cash for a 54 per-cent stake in Marmar in June, and as well as welcoming further mobile know-how, believes the deal will propel geographical growth and benefits of scale.

With revenue of more than $36.4m and adjusted EBITDA of more than $12m expected in 2015, Weihs has also not ruled out further acquisitions.

“We constantly look for potential acquisitions and are in an ongoing process of evaluating new prospects,” Weihs said. “We believe further acquisitions will expand our geographical and operational footprint, address new vertical end markets and deliver shareholder value.

“However, closing a deal requires full due diligence processes and negotiations and these are take time. We do hope to undertake additional bolt-on acquisitions this year, but cannot provide any guarantee on timing. We will update the market as we progress.”

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