XLMedia PLC warned Monday that it expects lower revenue and adjusted earnings for the full year, as the company reported a 22% fall in pretax profit in the first half of 2019.
The company XLM, -20.00% said that regulatory headwinds continue to create trading uncertainty in July and August its performance was weaker than expected. It blamed regulatory developments across Sweden, Germany, Switzerland and the U.K. which have hit its first-half performance, and which will ripple into its full-year performance.
As a result, it expects revenue to be around $80 million for the year, compared with $93.5 million in 2018. Moreover, adjusted earnings before interest, taxes, depreciation and amortization–the company’s preferred metric which excludes exceptional costs–are expected to be around $34 million, it said.
For the six months ended June 30, the digital-marketing company said pretax profit was $13.8 million, compared with $17.6 million in the prior year. Adjusted Ebitda for the period fell to $18.6 million, from $21.6 million.
Revenue in the half-year fell 10% to $42.5 million. The board declared an interim dividend of 3.1584 cents a share.
“This year has proven to be challenging for both XLMedia and the industry as a whole, as the gaming industry changes and regulates,” Chief Executive Ory Weihs said.
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