The leading performance marketing company, XLMedia, reported that its actions experienced a 29.4% decrease as a result of the recent changes Google made in the ranking of its websites, which led to a “significant decrease in the traffic” that would have affected the company’s revenues.
XLMedia revealed that its sites were synchronized with the changes made by Google in its search algorithm. However, the degradation of the company’s sites by Google was not performed algorithmically but manually.
In a statement the company said:
“On January 18, 2020, the company realized that several of its casino sites had been manually degraded by Google, which affects the visibility of the sites and their ability to generate significant levels of online traffic and, by therefore, income, of new visitors.”
The company added that:
“While it is too early to accurately assess the financial impact of this action by Google, any additional material delay for the complete restoration of the classifications of these online assets would result in a corresponding reduction in both revenue and EBITDA adjusted during that period.”
XLMedia confirmed however that:
“The Group’s other online publishing assets are not affected. A review process is now underway, with a view to resolving any problem as soon as possible and the company will provide an additional update in due course as more information becomes available.”
On January 13, 2020, Google updated the search algorithm and indicated through a tweet that most of its update took place on January 16.
After the announcement made by XLMedia, immediately the price of its shares fell on Monday of this week from $ 46.05 (3:55 pm) to $ 32.50, at the close of operations.
The company reported last December that it would make a strategic review of its operating model. That was after reporting that revenues for the fiscal year ending December 31, 2019, could reach about $ 78 million (£ 59.5m / € 70.0m), a figure well below the total recorded in 2018 of $ 117.9 million.
The company’s revenues were reduced by 10% year-on-year during the first half of last year, mainly due to regulatory measures in the markets where it operates.