LBG Media revenue rises as earnings disappoint
By Josh White
Date: Wednesday 21 Sep 2022
(Sharecast News) - Youth-focussed digital publisher LBG Media reported first-half revenue of £24.8m on Wednesday, up 8% from a "strong" prior year comparator, where revenue grew 133%, although its earnings performance disappointed.
The AIM-traded firm, which owns titles including LADbible, Unilad and Tyla, said direct revenue increased 11% year-on-year for the six months ended 30 June to £10.6m.
It said that was driven by strong growth in its international operations, most notably in Australia.
Indirect revenue, meanwhile, grew 4% to £13.6m, as "significant growth" in the volume of views continued, up 38% year-on-year as a result of growth in market share.
As it previously said, that had been offset by reduced revenue per view across the platforms amid a tough economic environment.
Adjusted EBITDA tumbled 78% to £1.6m, however, as LBG Media swung to a statutory loss before tax of £1.9m, from a profit of £5.6m a year ago.
The board blamed the earnings performance on its investment in people in the second half of 2021 to increase content and views across its brands and drive future growth, along with increased spend on physical marketing events that did not go ahead in the prior year amid Covid-19 restrictions.
Cash and cash equivalents at the end of the first half totalled £28.6m, down from £34.3m at the end of December, which the company put down to the payment of initial public offering-related costs, and the acquisition of Go Animals.
"The group has seen solid performance in the first half of the year in what is a challenging macro environment," said chief executive officer Solly Solomou.
"The growth we have achieved in our audience and views is a testament to the hard work of our teams and our ability to adapt creatively to changing market conditions.
"Our partner brands and platforms recognise our differentiated offering and significant engagement with hard to reach audiences and we remain leaders in our field."
Solomou said the firm was focussed on its growth strategy, "excited" by the potential of the United States market, and assessing merger and acquisition opportunities considered "complementary" to its existing offering.
"We remain confident in the long-term prospects for the business and significant growth potential for the future."
At 1526 BST, shares in LBG Media were down 22.5% at 79.66p.
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