Reply To: XL Media

Nick Hargrave

The Capital Market Day presentation confirmed our positive thesis on the business, but was light on disclosure of useful metrics to aid our financial analysis and forecasting. From the initial thesis previously outlined, we should note expected deferred consideration payments of c.£15m over the next 2 years which adds c. 1x EBITDA to the multiple when the EV is adjusted, still providing quite some margin of safety. A key part of the investment case will be the ability and timing of the US operations to move from one off customer acquisition payments to the more European model of lower up front payments but longer term and more forecastable revenue share arrangements