Following XLMedia PLC (AIM:XLM, OTC:XLMDF)'s strong first half, institutional stockbroker Cenkos reiterated its ‘buy’ consensus for the sports business.
The North American-based company’s sales were “substantially ahead of [Cenkos’] expectations” in the first half.
Cenkos attributed the growth to XLMedia’s sports betting revenues – accounting for 76% of the group’s sales – which offset weaknesses elsewhere in the company.
XLMedia says revenue and earnings surge in first half
The broker highlighted that XLMedia is second-half weighted, so with first-half revenues and adjusted EBITDA at 64% and 43% of Cenkos’ full-year forecasts, it kept its outlook for the year unchanged at EBITDA of £24.3mln.
Cenkos commented in a note: “The performance reported today should help build credibility in the stock."
Shares jumped 7.5% to 32.3p following its trading update on Wednesday.