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XL Media - Record H1; sales ahead 22%

August 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • XLM
  • Price:
  • 45.75p
XL has reported a strong H1 with continuing strong levels of growth in its core digital marketing services and from its new media channels including mobile and social media. Consequently it expects record revenues in H1 with an increase of at least 22% over H1 13. During the month, XL also acquired some online real estate for the Danish market with the bolt-on purchase of a network of casino and poker content sites for US$2.3m cash. The deal is eps enhancing from day one. The trading update underpins Cenkos forecast of eps of 3.5p for the current year and 3.9p next. Net cash stands at c US$70m so the EV/EBITDA is 6.3x dropping to just 5.5x. We have seen nothing to change our positive view of prospects and the gaming sector ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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