XLMedia acquires marketing agency Blueclaw as H1 revenue climbs 16%

XLMedia has sealed the £1.8m acquisition of Leeds-based marketing agency Blueclaw.

Founded in 2007, Blueclaw provides services ranging from SEO and PPC management to digital PR and content marketing, with significant experience in gambling verticals.

XLMedia has worked with Blueclaw since December 2020, during which time the agency has implemented new processes and systems to improve both performance and traffic.

The purchase will provide a UK hub for XLMedia’s European sports business, with Blueclaw’s SEO operations and digital PR practices to be applied across the group’s wider portfolio.

For the remainder of 2021, Blueclaw will continue to work autonomously. From then on, it will become a shared service function for all XLMedia assets and also agency partners.

The acquisition was funded through XLMedia’s existing cash reserves and is expected to be earnings accretive in the first full year of ownership.

The affiliate will pay £600,000 on completion, with the same amount payable at the end of year one. A further £600,000 will be paid as earnouts dependent on performance targets being met.

In the 12 months to November 2021, the business generated revenue of £1.1m and EBITDA of £100,000. Blueclaw owner and founder Fergus Clawson will remain with the business.

XLMedia CEO Stuart Simms said: “We are delighted to announce the acquisition of Blueclaw, which will see us bring this hugely talented team into the XL family.

“Having worked closely with them for more than 12 months, we’ve been able to experience first-hand the quality of their work and are hugely excited at the prospect of Blueclaw’s expertise being rolled out across our broader portfolio.

“Today’s announcement further demonstrates our commitment to rebalancing the business with the correct skills, people and technologies in order to create a sustainable platform capable of delivering long-term growth,” he added.

Elsewhere, XLMedia today published its half-year (H1) results for the six months ended 30 June.

H1 revenue rose 16% year-on-year to $32.2m while EBITDA climbed 29% to $6.6m. The sports division skyrocketed by more than 600% annually to $11.7m as the casino division delivered revenue of $12.5m.

Gross profit increased by 10% to $18.3m, although the affiliate reported a loss before tax of $400,000.

The Jersey-headquartered company maintains full-year revenue guidance of between $65m and $70m, although the impact of transformational activities like M&A and fundraising are likely to suppress operating profit across this year and next year.

CEO Simms said the capital raise conducted earlier in 2021 that allowed the firm to finance a deal for US sports betting affiliate Sports Betting Dime should be seen as a turning point.

“The equity raise proved to be a pivotal point in my tenure, having weathered the storm of the first 18 months, we could finally accelerate and execute plans to realise the ambition I set out when joining the business,” said Simms.

“Namely to build a platform (data, technology and operations) which powers a portfolio of branded assets operating across a number of verticals, offering an enhanced, content-rich consumer experience and improved advertiser performance.

“To achieve this ambition, during 2021, I have challenged the business to accelerate the acquisition of new assets, reorganise and re-build our capability and to develop a new data and technology platform.

“I am proud of the team and our achievements and have confidence that the necessary changes will result in improved focus, productivity and growth in H2 2022 and beyond,” he added.