XLMedia warns of earnings hit from strategy switch
Source - SMW
Marketing services group XLMedia warned of a $30m annual revenue shortfall as it shrank its exposure to lower-margin media activities.
'Trading for 2019 has started in line with management's expectations although still seeing operational and regulatory headwinds,' the company said
The strategic shift away from media was expected to combine with increased investment in the separate publishing arm to reduce Ebitda by $6m-to$7m.
'However, in the medium-term these changes are expected to deliver higher profit margins and better quality of earnings,' XLMedia said.
'The board remains committed to maintaining a progressive dividend policy and seeks to continue to pay out at least 50% of net profit by way of dividend,' it added.
At 9:46am: (LON:XLM) XLMedia Plc share price was -27.5p at 50.5p