XLMedia, a digital performance publisher, said it is on track to meet forecasts this year after first-half revenues rose by 16%.
Sales in the six months to June rose to US$32.2mln from US$27.7mln while underlying profits rose to US$6.6mln from US$5.1mln.
For the full year, XL still expects revenues of between US$65mln and US$70mln driven by US Sports and what it described as a reinvigorated Casino business, though operational changes will mean more costs this year than previously budgeted.
Broker Cenkos said the accelerating platform change aims to diversify revenues, improve the business mix and lower operating costs.
The bulk of this transition should be complete by summer 2022 in time for the seasonally important fourth quarter for US sports betting, the broker added.
“The changes wrought across the organisation will hike exceptional costs in our forecasts but tangible benefits should be felt from the H2 2022E onwards.”
XL also announced the acquisition of BlueClaw for £1.8mln cash (about 1.5 times sales) of which £0.6mln will be payable on completion, a stage payment next year of £0.6mln and an earn-out.
“Based in Leeds, Blue Claw is a profitable search engine optimisation and digital marketing agency which brings with it a skill set in data-driven marketing,” said Cenkos.