XLMedia set to 'beef up' technology infrastructure

XLMedia set to 'beef up' technology infrastructure

Thursday, September 18, 2014 Totally Gaming

Ory Weihs, the chief executive of XLMedia, has revealed that the online gaming marketing services provider is likely to focus on enhancing its technology infrastructure in the coming months after announcing its latest investment as well as “very encouraging” results for the first half of 2014.

XLMedia announced today (Thursday) that it had acquired an additional 21% stake in the joint venture that operates the group’s Finnish websites for $1.49m (€1.15m) to take its shareholding to 93%.

The latest transaction, which is expected to close on September 30, marks a further expansion of the company, which became the first major igaming affiliate business to float on the London Stock Exchange in March.

“We need to be comfortable with the rate of our growth, so we are more likely to be looking at beefing up our technology infrastructure in the coming six months rather than carrying out any big acquisitions,” Weihs told TotallyGaming.com.

“What we are seeing with the H1 financials are the results of our investment in infrastructure, which started in the middle of last year, months before our IPO.

“We have completed some very interesting acquisitions so far this year and we are always talking to companies of possible interest in the future.”

Since its flotation, XLMedia has struck deals to acquire mobile gaming marketing company ExciteAd Digital Marketing in a deal worth up to $19m and also unnamed online gaming marketing service providers in Scandinavia and the UK, for $2.3m and $6.7m, respectively.

In revealing its interim financial results yesterday for the first six months of 2014, XLMedia said that revenues had jumped by 24% year-on-year to $19.9m and gross profit had also increased by 10% to $11.3m.

“These are very encouraging results,” Weihs added.

“It is an excellent start to the year and it reflects strong sales momentum in our core European markets.

“The demand for our services remains high with gaming operators continuing to seek out our services in order to maintain significant levels of high quality traffic to their sites.”

The US market is one for the future, Weihs added.

“We want to set the foundations for future growth there, but it is definitely not the main focus of the company at the moment.”

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