XL Media begins non-core exit with $1.3m financial affiliate sites sale
London-listed affiliate sells Investor Junkie, Greedy Rates and Young and Thrifty, with advanced talks ongoing for remaining assets
XLMedia has confirmed the sale of a portion of its personal finance affiliate sites to MPD Media in a $1.3m all-cash sale.
The deal includes domains and websites such as Investor Junkie, Greedy Rates and Young and Thrifty, which offer financial advice and reviews to consumers.
The sale forms part of XLMedia’s strategy to exit so-called non-core activities and focus on its sports and gaming business, especially in the North American and European markets.
XLMedia has said the cash generated from the sale will be used for the day-to-day operations of the business.
The personal finance division reported revenue of just $1.9m and an EBITDA loss of $1.3m in 2022.
The assets sold to MPD Media were excluded from continuing operations in XLMedia’s 2022 results and have no impact on earnings in the current financial year.
XLMedia has revealed it is in advanced talks to sell the remaining personal finance division assets but also iterated that there is “no guarantee that a deal or deals” will be completed.
XLMedia’s shares fell by more than 5% in March following the publication of the affiliates’ 2022 financial results, despite the firm reporting an 11% year-on-year (YoY) increase in its revenue to $73.7m.
Company adjusted EBITDA fell 7% YoY to $16.7m in 2022, with that loss overshadowed by a whopping 521% increase in operating losses, which slumped from a profit of $2.8m in 2021 to losses of $11.8m in 2022.