XLMedia plots casino site resubmission to Google as revenue plummets 53%
Search engine change combines with Covid-19 to cost the Jersey-based affiliate $2m per month from late March
XLMedia has reported a 53% downturn in H1 2020 revenue to $27.7m (£21.2m) after changes to Google’s rankings algorithm and Covid-19 combined to negatively impact the Jersey-based affiliate firm.
The search engine’s algorithm update, which de-ranked XLMedia’s portfolio of legacy casino affiliate brands from the start of the year, was the key driver behind the financial drop-off.
Gross profit dipped to $16.6m for the period, down from $28.8m in 2019, while adjusted EBITDA fell by 265% year-on-year to $5.1m.
The AIM-listed business suggested business performance was impacted to the tune of $2m per month from late March due to Google’s strategic switch and the coronavirus pandemic.
XLMedia pledged to submit specific rebuilt casino sites for reconsideration by Google, where appropriate, by the end of Q4 2020.
XLMedia CEO Stuart Simms said: “Our business has endured a number of unforeseen challenges during 2020 but, as we enter the second half of the year, I believe we are seeing signs of recovery in some key areas.
“These green shoots, coupled with a detailed and diverse plan to mitigate the impact of the Google manual ranking penalty, give me and the executive team confidence we can enter 2021 with significant positive momentum and enhanced levels of control,” he added.
After the reporting period, XLMedia moved its corporation tax residence to the UK to reflect the location of senior management and governance.