151% Increase in Half Year EBITDA For @XTD_Group
XTD (ASX:XTD) today announced a half year EBITDA of AUS 439,350, which is a 151% increase, and a Net profit of AUS 213,376.
These are of course, small numbers by comparison to other ASX media stocks, but industry good guy Adam Cadwallader, who was appointed to the CEO role in August last year has obviously got the business on a much firmer footing than before.
He told us “The last 6 months have been incredibly pleasing and the result reflects the work that has been undertaken by the Board over the past 12 months”.
The company started the year executing the beginning of its diversification strategy by finalising the acquisition of Adline Media which is making significant inroads into the Australian Social Sporting sector. Whilst the Adline business is centred around Out-Of-Home it also has a software reseller and supply business providing high quality diversified revenue that is annuity based, thus avoiding a sole reliance on advertising revenue.
In a letter to shareholders released on the ASX Monday morning, Cadwallader stated that XTD has ambitions to play a larger role in the OOH and media ownership sector, but not an any cost.
“The market has obviously changed in the past 18 months and will continue to do so. The sector [out-of-home] needs competition and programmatic technology is allowing us [XTD] to investigate traditional and new lines of revenue. XTD has 45 large format digital screens as part of the Metro Trains Melbourne (MTM) network and Queensland Rail (QR) within the premium CBD stations of Melbourne and Brisbane, sold exclusively by JCDecaux. The Cross-track business remains in a positive position and our partnerships strong. We continue to explore and invest in technology and are working with our media partner JC Decaux on how we can transform its on-screen presentation to enhance the customer experience”.
XTD shares closed steady at $0.03.6c on Friday.
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