XLMedia to offload Finnish casino assets

Publishing company XLMedia has instructed Akur Capital to start a process to sell the majority of its Finnish-facing casino assets, along with certain other publishing sites, it announced on Wednesday.

The AIM-traded firm said the proposed disposal was in line with its stated strategy of refining its publishing portfolio, and refocusing on regulated and high-potential markets, to deliver more sustainable and predictable growth.

It said any disposal proceeds would be used, along with its current balance sheet headroom, to expedite its strategy through the acquisition and development of “content-rich, highly engaging” sites in regulated and high growth markets.

XLMedia’s board said it had a “clear transformation strategy”, intended to enable it to “shape the future” of the performance publishing industry.

It previously announced its three strategic goals, with the first being the consolidation of publishing assets, to focus its resources on a core set of premium sites in its chosen markets.

The firm said it would seek to build stronger relationships with consumers through “content-rich, engaging” websites, underpinned by “intelligent market-leading technology” which would enhance the yield from each interaction.

That rebalancing of the portfolio would be supported by organic investment, disposals and acquisitions.

Its second strategic goal was to invest in United States sports and personal finance, the board having identified North America as a core target market, where it had already established a foothold in personal finance.

The company said it would seek to further develop its personal finance presence, and significantly increase its investment in the “burgeoning” US sports market, through partnerships and acquisitions.

Finally, the company was looking to make further Investment in “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 could provide a competitive advantage.

“XLMedia has set out a clear transformation strategy to deliver the next phase of growth,” said chief executive officer Stuart Simms.

“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.”

At 1100 BST, shares in XLMedia were up 6.22% at 23.9p.