XLMedia PLC (LON:XLM) shares fell on Monday morning as digital marketing services provider said it expects to report lower revenue and profit, due to changes in Australian and European gambling markets.
In a trading update, the AIM-listed firm said it now expects to report revenues of US$130mln, with marginally lower adjusted EBITDA, with a corresponding impact on profit before tax.
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The company said: “The Group has also seen some impact from regulatory changes, namely the closure of the Australian market at the end of 2017 in addition to uncertainty regarding the regulatory status of certain European markets during 2018.”
The company said underlying trading has been stable with the group actively deciding to focus on higher margin business and “ceasing certain lower margin media buying activities.”
“Recently acquired personal finance assets continue to perform well and expects total publishing revenues in this sector to continue to grow as a proportion of overall Group publishing revenues during 2018,” XLMedia added.
In early morning trading, XLMedia’s shares fell 24.8% to 128.5p.