The global publishing group XLMedia, which is leading more than 2000 websites in the gambling industry, has reported losses in the first half of 2020. Stuart Simms, a CEO of the digital group, considers COVID-19 negative impact along with Google's renewed policies as the cornerstone reasons for the downfall. All in all, it led to about $15 million in losses compared to a similar period in 2019.
The world's diverse industries continue counting losses related to the coronavirus pandemic. Even though the latest financial news by Login Casino informed about positive tendencies in the digital gambling sector in 2020, the global gaming websites publisher XLMedia felt downfall. According to the report, the group's decrease in the first half of 2020 achieved almost 35% in a year-over-year comparison.
XLMedia's CEO, Stuart Simms, stated that the company's revenues dropped from $42.5 million to $27.7 million. The digital group met a decline in almost all aspects, including spendings, research and development spend, marketing expenses, earnings before interest, and operating profit. The chief executive officer insists on negative coronavirus influence.
How has Google impacted the situation with XLMedia?
Even though the negative role of COVID-19 is hard to underestimate across all the industries, the case of XLMedia is demonstrative. Thus, Stuart Simms announced the company's revenue downfall right after the Google manual ranking penalty was applied in January 2020.
The renewed policies implemented by the tech giant dropped the ratings of most websites XLMedia was leading. The global publisher's revenues weren't saved even after the massive amount of rebuilding and upgrading work related to the digital platforms the regarded company controlled was done. Moreover, Stuart Simms warns about new coronavirus waves that can punch XLMedia's income even more and force structural changes across the whole firm's strategy.
Read more: Is it worth investing in esports stocks?