LBG Media (LBG)

Sector:

Media

Index:

FTSE AIM All-Share

110.00p
   
  • Change Today:
    -4.00p
  • 52 Week High: 115.50
  • 52 Week Low: 63.50
  • Currency: UK Pounds
  • Shares Issued: 209.08m
  • Volume: 992,259
  • Market Cap: £229.99m

LBG Media reports decent full-year growth in tough market

By Josh White

Date: Thursday 18 Apr 2024

LONDON (ShareCast) - (Sharecast News) - Digital publisher LBG Media reported a robust full-year financial performance in its unaudited final results on Thursday, with total group revenue rising 7.5% over the year to £67.5m.
The AIM-traded firm said that growth was propelled by a 5.5% increase in direct revenue to £29.3m in the 12 months ended 31 December, fuelled by heightened activity levels with both new and existing clients, and bolstered relationships with blue-chip advertisers, with 75% of direct revenue stemming from recurring clients.

Additionally, indirect revenue saw robust growth of 10.4% to £37.1m, supported by escalating video views and audience expansion, underpinned by investments in personnel and technology, particularly through web and social platforms.

The company said its adjusted EBITDA was ahead 10.8% year-on-year, reaching £17.4m, with a healthy margin of 26%, up from 25% in the prior financial period.

Adjusting for a reduction in profit contribution from Australia, the underlying adjusted EBITDA would have soared by over 30%.

LBG Media recorded a cash conversion rate of 76%, significantly higher than the prior year's 37%, while cash and cash equivalents stood at £15.8m at the end of the period, reflecting the acquisition of Betches, with the figure rising to £22m as of 17 April.

Strategically, LBG Media made significant strides in the US market in the year with the transformative acquisition of Betches Media, alongside organic expansion efforts.

Operational enhancements in the Australia and New Zealand (ANZ) region were meanwhile expected to bolster profitability in 2024.

The firm's global audience surged 24% year-on-year to 452 million, with the US audience reaching 141 million, including the Betches acquisition.

Video views meanwhile escalated by 31% year-on-year.

The acquisition of Betches, a US-based digital media brand catering to women, was a strategic move completed in October for an initial cash consideration of £19.3m.

LBG said the acquisition positioned the company in the world's largest advertising market, and formed a vital component of its path to achieving £200m in revenue.

Performance and Betches integration were progressing well, with joint account wins with brands such as Peacock, White Castle and Mars.

Betches achieved proforma revenue of $17.2m in 2023, contributing £2.3m to LBG Media's revenue, with expectations of a greater contribution in the future.

Positive changes were implemented in the ANZ operating model in response to a year-on-year reduction in revenue and profitability, effective from January.

A multi-year partnership with Val Morgan Digital was announced, facilitating direct revenue delivery through a low-risk margin-share agreement, setting a blueprint for opportunities in new regions.

The centralisation of social and web operations into the UK centre resulted in a more efficient cost base for indirect revenue, leading to improvements in the operating model's efficiency and profitability.

"Our revenue and EBITDA growth in 2023 demonstrates the group's unique position and resilience in the face of some really testing market conditions," said chief executive officer Solly Solomou.

"The strategic and operational progress we have made this year provides impetus and puts us in a strong position to realise our ambitions.

"Our global audience has increased to 452 million, and we have significantly strengthened our presence in the US, the world's largest advertising market, organically and through the acquisition of Betches."

Solomou said the scale of the company's audience, strength of its brands, and market-leading engagement within its communities set it apart, adding that its ability to provide real-time insight and analysis to clients was a unique selling point.

"As one of the world's largest digital entertainment businesses, our relationships with large blue-chip advertisers continue to deepen and grow, with an increasing roster of brands working with us year-after-year.

"We operate in the largest and fastest growing segment of the advertising market and provide an unparalleled proposition for brands wanting to access young adult audiences.

"Combined with ongoing expansion in the US market and our diverse revenue model, we are confident in our position to create significant value for shareholders in the years ahead."

At 0826 BST, shares in LBG Media were up 5.93% at 71.5p.

Reporting by Josh White for Sharecast.com.

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LBG Media Market Data

Currency UK Pounds
Share Price 110.00p
Change Today -4.00p
% Change -3.51 %
52 Week High 115.50
52 Week Low 63.50
Volume 992,259
Shares Issued 209.08m
Market Cap £229.99m

LBG Media Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
48.29% below the market average48.29% below the market average48.29% below the market average48.29% below the market average48.29% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average
Price Trend
49.48% above the market average49.48% above the market average49.48% above the market average49.48% above the market average49.48% above the market average
14.89% above the sector average14.89% above the sector average14.89% above the sector average14.89% above the sector average14.89% above the sector average
Income Not Available
Growth
73.57% below the market average73.57% below the market average73.57% below the market average73.57% below the market average73.57% below the market average
48.84% below the sector average48.84% below the sector average48.84% below the sector average48.84% below the sector average48.84% below the sector average

LBG Media Dividends

No dividends found

Trades for 14-Jun-2024

Time Volume / Share Price
09:10 54,298 @ 114.00p
09:10 400,000 @ 114.00p
16:35 1,610 @ 110.00p
16:35 803 @ 110.00p
16:35 5 @ 110.00p

LBG Media Key Personnel

CEO Alexander William Solomou
CFO Richard Jarvis

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