(Alliance News) - Digital marketing firm XLMedia PLC on Wednesday said its annual revenue fell and it swung to loss on soaring impairment costs.
In 2019, revenue was 15% lower at USD79.7 million from USD93.5 million. XLMedia posted a pretax loss of USD57.7 million from a USD36.1 million profit.
Impairments ballooned to USD81.4 million from USD300,000. On an adjusted basis, so not including impairments and reorganisation costs, pretax profit was 31% lower at USD25.3 million from USD36.4 million.
"Following an independent and comprehensive review of recorded asset values at year end and further reductions following the demotion of the group's websites by Google in January 2020, XL Media has booked an impairment loss of USD81.3 million in its 2019 accounts," XLMedia said.
The company was struck a blow at the start of 2020, with the Limassol, Cyprus-based firm reporting that traffic to its online casino websites dried up after they were demoted on Google searches.
Before this, and prior to the pandemic, XLMedia said it made a "solid start to 2020".
XLMedia added: "As previously guided, the company currently estimates a monthly reduction in group revenues as a result of the Google de-ranking of between USD1 million and USD2 million.
"Experience to date has shown the Google de-ranking impact has been within that range and management are confident that, taken together with the direct impact of Covid-19, the reduction of revenues will not be in excess of this guidance range over the course of the year.
XLMedia shares were 6.9% lower at 22.90 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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