XLMedia puts personal finance arm up for sale
Affiliate moves to restructure business following poor performance of division in 2022
XLMedia has confirmed it is exploring the potential sale of its faltering personal finance assets as part of a business restructure at the affiliate.
The AIM-listed firm confirmed the restructuring process is underway, with the business already in talks with a number of potentially interested parties regarding a sale.
However, XLMedia noted there was no certainty that such an offer would be received, or as to what terms an offer would be subject to.
XLMedia added that the decision to explore a sale of its personal finance division related to the firm’s aim to prioritise resource allocation to core activities and focus on the North American market.
The affiliate also said it was looking to rebuild its European sports and gaming operations to seek maximum value for shareholders.
XLMedia’s personal finance division was downgraded to a “marginal activity” in the group’s H1 results after the arm returned revenue of just $800,000, down from $6.6m in H1 2021.
At the time of the release of the H1 results, XLMedia said: “The decline in revenue has significantly impacted the group’s revenue and profit performance during the period.
“Following the move of the business from Israel to the US, the focus of the team has been to commence the migration of the sites to a new platform, refresh the content to meet Google’s YMYL parameters and prioritise two of our premium brands, Moneyunder30 and InvestorJunkie,” the statement continued.
Following Google’s YMYL (Your Money Your Life) changes, XLMedia took the decision to re-platform the business and renew its content.
YMYL includes topics which could potentially impact a person’s future happiness, health, financial stability, or safety and XLMedia’s personal finance division fell into these categories following the changes.
During the same H1 update, XLMedia added: “Revenue recovery is taking significantly longer than planned and revenue of the personal finance business is now expected to be approximately $1.5m for the full year, resulting in a move from profit to loss of approximately $1 to $2m which will negatively impact the group’s full-year performance.”