RE: Sharewatch9 Aug 2014 13:37
yes this what they say:
XL Media - Record H1; sales ahead 22%
45.75p Epic code: XLM
(Sharewatch) 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 continues to spend frantically on customer acquisition.
With US$70m cash XL is well placed to complete on the large acquisition investors are waiting for. Buy/strong hold.