XLMedia plc (lon:xlm)
XLM – Has Google Administered A Death Blow?

XLMedia plc Financials

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Commentary History
XLMedia plc Share Price
Grade:The Pink Grade - A Pure Slightly Informed Gamble, The Market Doesn't Like The Company But I Think That I Understand Why.
Title: XLM – Has Google Administered A Death Blow?
Company: XLM - XLMedia plc
Share Price Then: 36.5p
Author: Ian Smith
Date: Mon 27 Jan 2020
Comments: I have found XLM an interesting share in the past as it has been in a bad news, recovery, more bad news cycle, but I have never liked the business.

The reason being that their main revenue stream seams to be the 2,300 sites that they own and use to generate revenue from pay per click advertising.

As mentioned in the previous comment I have concerns about the quality of these sites and On 18 January 2020, the Company became aware that a number of its casino sites have been manually demoted by Google, which impacts

Normally when Google manually demotes sites they send the site contact an email saying that the site has been demoted and the reason.

Generally the reason is in one of two categories, there is noting that Google objects to but it is a pretty naff site or the site is trying to manipulate Google’s site indexer.

In the first case all that is needed is to improve the quality of the site, this is simple for sites that genuinely intended to interest the reader but really difficult for sites that are Click-Bait.

The second reason can be a misunderstanding, something that was valid 15 years ago is now a No-No, or it can be very deliberate to the point of serving a different site or version of the site if the reader is the GoogleBot. GoogleBot is the name Google kindly gives (user agent) when it is reading your site so it is possible to tailor a site for site engines.

As of start of day Monday 27 Jan there has not been an update from XL Media explain this demotion in detail or an a announcement that it has been removed. This is starting to suggest that this may be a permanent situation, if so then there is reason to be worried that the company’s other sites are also vulnerable to a similar demotion.

Given that the sites that I have seen are not ones that I would go back to, the business seems massively geared to a single visit from a person and the click on a paid for link.

Without Google listing these sites highly I can’t see how this model works.
Read Count/ID: 328/10109

Buy/No Buy In A Nutshell
NegativesGoogle manually deranked a lot of their sites apparently because of a quality issue in Jan 2020 and no fix has been announced, suggesting that there is a real risk that there may never be a fix.
PositivesThey can fix the Google ranking issue.
Initial Review Price24p
Last Review Price24p
Last Review Date14-Jul-2020
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