REG - LBG Media PLC - Half-year Results
24/06/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250624:nRSX0646Oa&default-theme=true
RNS Number : 0646O LBG Media PLC 24 June 2025
24 June 2025
LBG Media plc
("LBG Media", the "Company" or "Group")
Half-year results for the six months ended 30 March 2025
Double-digit profit and revenue growth
U.S. momentum and healthy pipeline
LBG Media, a social entertainment powerhouse with a focus on young adults,
announces half-year results for the six months ended 31 March 2025 ("H1 25" or
"the period"). All figures relate to the period, unless otherwise stated.
Positive momentum for our growth strategy
● Strong demand from blue-chip brands for LBG Media's content and reach with
young adults.
● U.S. delivering significant wins and a healthy pipeline of opportunities.
● Direct (content for brands and agencies to reach young adults) revenues up 8%,
including 17 clients with more than $1m annual revenues (12 months to March
2024: 7).
● Indirect (revenues shared with platforms that place adverts next to LBG Media
content) performed strongly, with revenues up 18% against a weak prior year
comparator on social platforms.
● Unparalleled engagement and reach for our content: global audience up to 520m
(FY24: 503m).(1)
● Diversified revenue streams with a broadly even split between Direct and
Indirect revenues.
● Strengthening the leadership team and culture to support the next phase of LBG
Media's growth.
Financial Highlights
£m H1 25 H1 24 Growth (%)
Revenue
· Direct 19.3 17.9 8%
· Indirect 24.5 20.8 18%
· Other 0.1 0.1 1%
Total Group Revenue 43.9 38.8 13%
Adjusted EBITDA(2) 12.2 10.3 18%
Adjusted EBITDA margin(2) 27.8% 26.4% +1.4 ppts
Profit before tax 8.6 3.3 165%
Cash and cash equivalents 32.9 19.8 66%
● Total Group revenue up 13%, reflecting momentum with clients.
● Adjusted EBITDA up 18%, driven by strong performance in Indirect and lower
growth in costs.
● Excellent cash performance, with cash conversion of 110%(3), supporting a
strong balance sheet with net cash of £32.9m (30 September 2024: £27.2m).
Current trading and outlook
● Whilst mindful of heightened macroeconomic volatility and the impact of tariff
uncertainty on advertising spend and advertising yields since the half year,
the Board remains confident of delivering 10% revenue growth at constant
currency.
● Assuming current currency rates continue, the weakening of the U.S. Dollar
against sterling is expected to have approximately a £2m impact on FY25
revenues and a c.£1m impact on EBITDA. The Group has done all it can to
mitigate the impact, including substantially hedging our U.S. Dollar cash flow
exposure.
● LBG Media's diversified model, momentum from wins in the U.S., healthy
pipeline and audience engagement underpin confidence of further progress in H2
25.
CEO, Solly Solomou commented:
"LBG Media has positive momentum, with double digit growth in the first half
of 2025. This reflects our diversified and agile model, which offers blue-chip
brands access to the hard-to-reach 16-34 year old demographic. In the US, we
were pleased to secure several clients exceeding $1m and build a healthy
pipeline of near-term opportunities.
Our confidence of progress in the second half of the year is underpinned by
our audience, the power of LBG Media's brands, our attractiveness to brands
and celebrities, and the relevance of our content. Whilst mindful of the
macroeconomic environment, we remain confident of delivering 10% revenue
growth at constant currency."
Analyst Presentation
LBG Media will host a hybrid virtual and in-person analyst briefing at 9.30am
UK time, on 24 June 2025. To join the briefing virtually, please use the
following webcast link:
https://lbgmedia.co.uk/results-reports-presentations/interims-live-webcast
(https://lbgmedia.co.uk/results-reports-presentations/interims-live-webcast)
A recording of the presentation will also be available on the LBG Media
website at
www.lbgmedia.co.uk/results-reports-presentations/results-and-presentations
(http://www.lbgmedia.co.uk/results-reports-presentations/results-and-presentations)
following the event.
Notes
(1 Audience numbers reflect social followers, unique podcast listeners and
average monthly website users in the 12 months to 31 March 2025. The
percentage growth indicates the change compared to the corresponding period in
the previous year.)
(2 Adjusted EBITDA - earnings before interest, tax, depreciation, and
amortisation adjusted for share-based payments (including employers NIC as
appropriate) and adjusting items. Adjusted EBITDA margin is adjusted EBITDA
divided by Group Revenue represented as a percentage.)
(3 Cash conversion is calculated as operating cash flow divided by adjusted
EBITDA.)
( )
( )
For further information please contact:
LBG Media plc
Solly Solomou, Co-founder & CEO
Dave Wilson, Executive Chair investors@ladbiblegroup.com
Zeus (Nominated Adviser &
Broker)
Dan Bate / Nick Cowles (Investment Banking) Tel: +44 (0) 161 831 1512
Benjamin Robertson (Equity Capital Markets) www.zeuscapital.co.uk (http://www.zeuscapital.co.uk/)
Peel Hunt LLP (Joint Broker)
Neil
Patel Tel: +44 (0) 207 418 8990
Benjamin
Cryer www.peelhunt.com (www.peelhunt.com)
Alice Lane
Kate Bannatyne
Media Enquiries
FTI Consulting
LLP Tel: +44 (0) 203 727 1000
Jamie Ricketts / Kwaku Aning / Jemima Gurney
ladbiblegroup@fticonsulting.com (mailto:ladbiblegroup@fticonsulting.com)
Notes to editors
We help brands reach young adults on social media platforms, such as Facebook,
Instagram, Snapchat, X, YouTube and TikTok and our owned and operated
websites.
We produce and distribute digital content such as videos, editorial, images
and audio.
We do this through our brands, such as LADbible, UNILAD, Betches and
SPORTbible, which are dedicated to distinct popular interests).
Engagement is at the heart of what we do - which comes through in our two main
revenue streams:
a We create bespoke content for blue-chip advertisers that gives them access to
a young adult audience that is hard to reach for traditional media players.
This is distributed across social media platforms and our owned and operated
websites. We call this 'Direct' revenue.
b Third parties - such as social media platforms - generate revenue by placing
advertising next to our content. We call this 'Indirect' revenue, and the
revenue is shared between the publisher, which is us, and the social media
platform.
LBG Media is listed on the AIM market of the London Stock Exchange (AIM: LBG).
CHIEF EXECUTIVE OFFICER'S REVIEW
A social media powerhouse
LBG Media is a social media powerhouse with a diversified business and a
proven model.
We have a mission to give young adults a voice by building communities that
laugh, think and act. Young adults engage with the content we produce,
curate and distribute. This has enabled us to build an audience of 520m
people globally and places us at the heart of two significant trends: the
shift towards digital advertising and the expanding purchasing power of
Millennials and Gen Z.
Today, LBG Media is the UK's fifth largest social and digital business by
reach. We have a growing presence and strong momentum in the U.S., the
largest advertising market globally.
Our model is defined by our audience, the power of LBG Media brands, our
attractiveness to blue-chip brands and celebrities and the relevance of our
content. Brands are attracted to our access to the hard-to-reach young adult
audience via our portfolio of brands which are dedicated to distinct popular
interests.
We engage with blue-chip brands and social media platforms to generate
revenues in two distinct ways. Firstly, our content acts as a vector for
blue-chip brands and media agencies to reach young adults online, which we
term 'Direct' revenues. Secondly, we have revenue-share arrangements with
social media platforms that place adverts next to our content and our owned
and operated websites ("Web"), which we term 'Indirect' revenues.
A large, growing market
LBG Media benefits from two structural trends which create significant
opportunities for long-term growth:
1. Rapid growth in the digital advertising market; and
2. Rising millennial and 'Gen Z' buying power.
Rapid growth in the digital advertising market
LBG Media's addressable market is large and growing, estimated to be $8.25
billion. The market is expected to grow at approximately 8.6% from
2025-2027, driven by a range of factors including momentum in retail media and
pureplay digital platforms. More than 70% of marketing budgets are digital,
compared to around 50% five years ago.
Rising Millennial and 'Gen Z' buying power
Millennials and particularly Gen Z, who encompass our target audience of young
adults born between 1997 and 2012, are expected to be the wealthiest
generation globally by 2030. Gen Z is digitally native, with 94% of that age
demographic using social media, and accounts for 17% of global spend.(1)
We continue to invest in our Millennial and Gen Z audience base consuming our
content across our various owned platforms and operated websites.
Our ability to engage with Millennial and Gen Z audiences is the primary
reason why global brands and celebrity names are attracted to partnering with
LBG Media. This, alongside our proven ability to create and produce engaging
content using our proprietary tools means we are best placed to reach and
engage with audiences through our intellectual property in a way that builds
brand loyalty and authentically resonates with young
adults.
We have regularly demonstrated this over time by generating the tens of
billions of views as well as through our engagement and growth in our target
audience.
1 - Sources: WARC, Global Ad Spend Outlook 2024/25 & NIQ, A Report on Gen
Z Spending Power.
Our investment case
LBG Media's investment case is centred around six key strengths:
1. A large, growing market. LBG Media is embedded in the fastest-growing part of
the market. Our addressable market estimated to be $8.25 billion and is
forecast to grow at approximately 8.6% from 2025-2027.
2. A proven, pureplay digital model. LBG Media benefits from strong demand from
blue-chip brands to reach young adults through engaging content. LBG Media's
portfolio of brands based on distinct interests drive engagement with our
audience.
3. U.S. Opportunity. LBG Media has momentum with leading blue-chip brands in
the U.S., the largest advertising market globally.
4. Scalable, diversified model. LBG Media's leadership structure and culture
supports the next phase of LBG Media's growth across diversified revenue
streams.
5. Continued Innovation. The business is using content-driven AI and Generative
AI to improve our speed and efficiency.
6. Acquisition strategy. Our strong cash generation and balance sheet support
selective bolt-on acquisitions where we see a strong strategic fit. The
acquisition of Betches in 2023 is an example of how we make acquisitions that
fit with our long-term strategy to build our audience, engagement and appeal
to blue-chip brands.
Strategic progress across our three growth lenses
LBG Media enjoyed positive momentum in H1 25, with double-digit revenue
growth, excellent momentum in the U.S. and a healthy pipeline.
Our strategic progress reflects strong demand from blue-chip brands for LBG
Media's content and reach with young adults. Our global audience is now up
to 520m, from 503m at September 2024. We see this across our three growth
lenses - Direct, Indirect and U.S. expansion.
Direct (44% H1 25 revenues)
Direct revenue is where we provide content marketing services to blue-chip
brands and media agencies and have direct engagement with the advertiser.
Direct grew 8% in H1 25, with a particularly strong performance in the U.S.
As proof of our momentum, we now have 17 clients with annual revenues of more
than $1m (12 months to March 2024: 7). LBG Media continues to grow deeper
more strategic partnerships with major brands and blue-chip advertisers.
In the UK, we now have 12 clients delivering more than $1m in annual
revenue. While Betches UK is expected to launch in July 2025, extending our
market-leading podcast offering, predominantly aimed at a female audience, to
the UK.
78% of our Direct revenue is on a repeat basis (H1 24: 68%), underlining the
resilience of our model. Our brief conversion rate was 27% (H1 24: 29%).
Indirect (56% H1 25 revenues)
Indirect is where we generate revenue on social platforms ("Social") and from
our owned and operated websites ("Web").
Indirect revenues grew 18% in H1 25, with our Web revenue stream up 27% as we
saw growth in web sessions and deeper user engagement, which was supported by
a consistent focus on higher-quality content. Additionally, our Social revenue
stream was up 12% against a weak prior year comparator due to business model
changes at Facebook, as previously indicated.
Within our Social revenue stream, we continue to grow and scale our audience,
in terms of size and engagement. Our total audience has grown to 520m, an 8%
increase compared to the same period last year (H1 24: 483m), with the
majority of this growth driven by the U.S.
We continue to invest in innovation across our content and tools to keep
evolving our output and maintaining high levels of engagement. This includes
the rollout of Mission Control, our proprietary data platform that tracks
content performance across both web and social. We've also implemented EMMA
(Editing Media Management Assignment), our virtual traffic manager, which
saves an average of four minutes of work per video, and over 4,000 hours saved
annually, by helping streamline workflows through automating task allocation,
improving resource planning and ensuring deadlines are met efficiently.
U.S. Expansion
Supporting our growth across both Direct and Indirect segments.
In the U.S., a strategically important market for LBG Media which is
approximately eight times larger than the UK market, we continue to see
positive momentum with large brands and blue-chip advertisers.
Our audience in the U.S. grew to 145m, up 11% (H1 24: 130m).
The combination of LBG Media and Betches offers deep relationships with
advertisers and agencies, unparalleled data and insights and a powerful
creative force. We now offer brands and agencies a "One Stop Shop" in the
U.S., providing integrated access to a highly engaged Gen Z and Millennial
audience across platforms.
As a result, LBG Media has secured significant client wins in the U.S. LBG
Media had 5 clients generating revenues of at least $1m in annual revenue at
31 March 2025. This is a mark of our impact in the largest advertising
market in the world in a short space of time.
Our clients include leading and global blue-chip brands such as Netflix,
Dunkin' Donuts, Boston Beer, PepsiCo and NXY Cosmetics.
Betches met its revenue target for 2024, triggering a $5.5m earnout which was
paid in May 2025.
The evolution of editorial content to incorporate AI
Editorial content is evolving to include AI-generated content with human-made
material, sometimes separately and sometimes seamlessly integrated. The
value of human-created content is not in doubt and will rise significantly in
this next chapter for content. This is mutually compatible with the
increasing use of AI-generated material.
LBG Media is well-positioned to capitalise on this shift, given the strength
of our position within the young adult audience and the depth of our
distribution channels. This gives us a tangible market advantage as we see
an increase in AI-generated content.
LBG Media has a clear direction of travel on AI and uses AI-generated material
as part of its editorial content. As an OpenAI enterprise customer, we are
already exploring how AI can drive efficiency, innovation, and creativity,
including tools which generate video from scripts, to emerging breakthroughs
in dubbing, lip-syncing, and multilingual translation.
Platform for scaling
LBG Media has a scalable model that supports long-term, sustainable growth.
The strength of our leadership team, positive market dynamics and purpose-led
culture support the next phase of LBG Media's growth.
As a growing, cash-generative business, we will continue to assess
opportunities for acquisitions that support the long-term expansion of our
audience engagement and reach. We have a healthy acquisition pipeline and a
strong balance sheet and cashflow to support acquisitions where they fit our
long-term strategy.
We have significantly strengthened our senior leadership team with several
high-calibre hires. Victoria Bickle has joined as Managing Director of Client
Solutions, bringing a wealth of experience in commercial strategy.
Nick Speakman, formerly Head of Social at Manchester United, is now our
Director of Social, helping to drive audience growth and engagement.
Simon Champion has come on board as Chief Business Officer. Simon was
previously CEO at Boxpark and brings deep expertise in scaling innovative
businesses.
Trudi Sunderland is our new Human Resources director, and we also welcomed
Neil Greenhalgh, former CFO at JD Sports, as a Strategic Advisor.
We've also appointed Harry Stebbings as a Non-Executive Director. Harry's
experience as an investor and founder of 20VC brings valuable strategic
insight to the board, specifically on technology innovation as we look to
drive further media engagement.
As announced previously, Richard Jarvis stepped down as CFO on 13 February
2025 and Dave Wilson moved into an executive Chair role on 22 January 2025,
with a particular focus on supporting the finance, legal teams and investor
relations. The Board would like to thank Richard for the contributions he made
during his tenure and wishes him all the best in the future. We are pleased to
confirm that an experienced CFO has been identified and will join the Company
in H1 2026, following the completion of their existing contractual
commitments. Interim arrangements are in place to ensure continuity, with the
finance and management team focused on delivering our strategy.
Purpose-Driven Work and Awards
LBG Media has a purpose-driven culture.
As an example of our culture in practice, LBG Media partnered with Women's Aid
to launch a powerful campaign aimed at raising awareness of coercive control
and domestic abuse among younger audiences. Using LADbible's platform to
reach millions, the campaign leveraged the aspirational 'van life' trend,
juxtaposing curated social media moments with the harsh reality of abuse.
Built for social platforms and optimised for sharing, it combined emotional
storytelling with platform-native formats to drive virality whilst encouraging
victims to seek support.
In support of mental health, we launched a commercial partnership with the
charity Campaign Against Living Miserably (CALM), which offers resources and
support for individuals experiencing financial stress and its effect on their
mental wellbeing.
We also partnered with the Royal National Institute of Blind People (RNIB).
RNIB 'hijacked' LADbible platforms to increase understanding of sight-loss by
addressing misconceptions and closing any knowledge gaps that younger people
might have in an honest, engaging, thought-provoking and humorous way.
We recently won Campaign's Media Brand of the Year and Commercial Team of the
Year Awards. LADbible Group was also named Industry Pioneer at TellyCast
Digital Video Awards 2025.
In March 2025, we won the Marketing and Media Excellence Award at The King's
Trust Partnership Awards. Since 2018, LBG Media has worked with the King's
Trust to help them reach and support young audiences at scale and empower them
to reach their full potential. LBG Media has supported the Trust in a number
of ways, from being official social partner at their annual Awards, hosting
red carpets and surprising winners with their idols, to creating LADnation
reports to uncover insights into young people and the path to their careers
and futures. Together we highlight important issues, provide opportunities,
and inspire positive change in the lives of young people.
Current trading and outlook
Our primary focus in the medium-term is on growing the number of clients
delivering more than $1m in annual revenues. We will achieve this by
building deeper, longer-term, relationships with major advertisers and
blue-chip companies. In turn, these larger clients support visibility of
revenues.
Within our Direct business, we expect to see continued momentum in the U.S.,
the world's largest advertising market, and further significant wins in H2 25
as we scale our integrated proposition across media, content and creative.
In the second half of our financial year, our UK Direct business will have a
tough year-on-year comparator, given the men's football European Championships
generated approximately £3.5m of revenues in the prior year.
Assuming current currency rates continue, the weakening of the U.S. Dollar
against sterling is expected to have approximately a £2m impact on FY25
revenues and a c.£1m impact on EBITDA. The Group has done all it can to
mitigate the impact, including substantially hedging our U.S. Dollar cash flow
exposure.
Within our Indirect business, we have seen the impact of macro and tariff
uncertainty on advertising spend and advertising yields since the half year.
We are seeing a steady build-up in our Social revenue stream and a
stabilisation in the Web revenue stream.
LBG Media's diversified model, momentum from wins in the U.S., healthy
pipeline and audience engagement support confidence of further progress in the
second half of our financial year. This is underpinned by the power of LBG
Media's brands, our attractiveness to brands and celebrities and the relevance
of our content.
Whilst mindful of heightened macroeconomic volatility and the impact of tariff
uncertainty on advertising spend and advertising yields since the half year,
the Board remains confident of delivering 10% revenue growth at constant
currency.
Solly Solomou
Chief Executive Officer
24 June 2025
FINANCIAL REVIEW
Highlights & Key performance indicators ('KPIs')
The Group delivered top-line growth, with revenue increasing by 13% to £43.9m
(HY24: £38.8m). This was driven by an expanding global audience and improved
digital engagement metrics. Adjusted EBITDA margin improved year-on-year,
supported by disciplined cost management and strong operational leverage, as
revenue growth outpaced the increase in operating expenses.
The following highlights and KPIs showcase our progress and accomplishments
over the period:
H1 25 H1 24 Change Change
(£m) (£m) (£m) %
Revenue 43.9 38.8 5.1 13%
Adjusted EBITDA 12.2 10.3 1.9 18%
Profit before tax 8.6 3.3 5.3 165%
Closing cash 32.9 19.8 13.1 66%
Cash generated from operations 13.4 9.8 3.6 36%
Cash conversion 110% 96% - 14 ppts
Financial KPIs
Adjusted EBITDA as a % of revenue 27.8% 26.4% - 1.4 ppts
Profit before tax as a % of revenue 19.6% 8.4% - 11.2 ppts
Non-Financial KPIs
Global audience* (m) 520 483 37 8%
Brief conversion 28% 29% - (1 ppts)
Daily web sessions (m) 5.0 4.5 0.5 11%
Web yield per 1k sessions (£) 10.34 9.14 1.20 13%
* Global Audience reflects social followers, unique podcast listeners and
average monthly website users in the 12 months to 31 March 2025.
Adjusted EBITDA, which is defined as profit before net finance costs, tax,
depreciation, amortisation, asset impairment and release of related
liabilities, share based payment charge and adjusting items is a non-GAAP
metric used by management and is not an IFRS disclosure.
Revenue
H1 25 H1 24 Change
Revenue (£m) (£m) %
Direct 19.3 17.9 8%
Indirect 24.5 20.8 18%
Other 0.1 0.1 1%
Total Group Revenue 43.9 38.8 13%
Total Group revenue reached £43.9m, representing a 13% year-on-year increase
(HY24: £38.8m). This growth was underpinned by an 8% expansion in our global
audience, an 11% uplift in daily web sessions, and a 13% improvement in web
yield, highlighting the effectiveness of our digital engagement strategy.
Adjusting for APAC, revenue was up 15%.
Direct revenues increased by 8% to £19.3m (HY24: £17.9m), supported by
continued momentum in the US where we are seeing a greater number of clients
with spend exceeding $1m. In the UK, we continued to strengthen our
relationships with key partners, becoming a more embedded part of their
marketing strategies as investment shifts toward digital platforms.
Indirect revenue increased by 18% to £24.5m (HY24: £20.8m), underpinned by
strong performance across both web and social channels. Web revenue rose by
27%, following the resolution of prior period web-related issues, while social
revenue grew 12%, reflecting improved platform performance versus a softer
prior year. Our diversified and expanding global audience base, up 7%
year-on-year, continues to reinforce the resilience and sustainability of our
multi-channel growth strategy.
Net operating expenses
H1 25 H1 24 Change
Net operating expenses (£m) (£m) %
Content costs 7.6 5.9 29%
Overhead costs 6.9 6.5 7%
Payroll costs 17.2 16.2 6%
Share based payment costs 1.0 1.0 -
Amortisation, depreciation and impairment 2.5 2.8 (11%)
Adjusting items 0.4 2.7 (86%)
Total Group net operating expenses 35.6 35.0 2%
Net operating expenses increased by 2% to £35.6m (HY24: £35.0m), reflecting
the Group's continued focus on delivering strategic priorities while
maintaining operational efficiency.
Content costs increased by 29% to £7.6m (HY24: £5.9m), driven by targeted
investment in content creation and production to support both revenue growth
and deepen audience engagement. This also includes a strategic project
delivered for an key client at margins below our usual levels. The engagement
was viewed as a long-term investment in the relationship and is expected to
create opportunities for future commercial growth.
Overhead costs increased by 7% to £6.9m (HY24: £6.5m), driven in part by
higher travel expenditure, as our senior leadership team increased their
presence in the US to advance and support our US expansion strategy-a market
of strategic significance for the Group's long-term growth ambitions.
Payroll costs increased by 6% to £17.2m (HY24: £16.2m), driven by the
strategic strengthening of our senior leadership team, continued investment in
talent across the organisation, and the expansion of our US team. These
investments support our long-term growth ambitions, drive innovation, and
enhance our global operating capabilities. Share based payment costs remained
consistent at £1.0m (HY24: £1.0m).
Amortisation, depreciation and impairment decreased to £2.5m (HY24: £2.8m),
reflecting the absence of a £0.3m asset impairment recognised in the prior
period as part of the ANZ business reorganisation.
Adjusting items reduced significantly to £0.4m (HY24: £2.7m), with the prior
period including costs associated with business reorganisations and
acquisition related fees.
Adjusted EBITDA
Adjusted EBITDA of £12.2m (HY24: £10.3m) representing a 18% increase in
comparison to the prior period. Adjusted EBITDA margin increased to 28% (HY24:
26%). This demonstrates the Group's ability to drive revenue growth while
maintaining control over its cost structure, and we remain focused on driving
further efficiencies in the second half of the year.
Adjusted EBITDA is used for internal performance analysis to assess the
execution of our strategy and is a benchmark that has been used by management
and the investment community to assess the performance of the Group. As such,
management believe that this adjusted measure is an appropriate measure to
assess the performance of the Group. Note that using Adjusted EBITDA produces
a materially different result to the most closely related GAAP measure, being
Profit Before Tax. It is therefore important to understand the nature of any
adjusting items.
Net finance costs
Net finance costs of £0.6m (HY24: £0.7m) were incurred during the period,
primarily reflecting the unwinding of the discount on the contingent
consideration liability associated with the acquisition of Betches.
Share of joint ventures
The Group's share of profit from joint ventures increased to £0.8m (HY24:
£0.2m), underscoring the continued growth and improved profitability of
Pubity Group Ltd.
Profit before tax
Profit before tax grew to £8.6m (HY24: £3.3m), representing a substantial
year-on-year uplift. This improvement was driven by both revenue growth and
efficient cost control.
Taxation
The tax charge for the period was £2.4m (HY24: £1.7m). The effective tax
rate for the period is 27%.
Cashflow and cash position
Cash and cash equivalents at the period end amounted to £32.9m (31 March
2024: £19.8m). Cash generated from operations was £13.4m for the period
(HY24: £9.8m).
Cash conversion in the period was 110% of adjusted EBITDA (HY24: 96%). This
improvement reflects the Group's ongoing focus on disciplined working capital
management.
More information on the cash flow can be found in the unaudited interim
financial information.
Solly Solomou
Chief Executive Officer
24 June 2025
UNAUDITED INTERIM FINANCIAL INFORMATION - LBG MEDIA PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Period ended Period ended
31 March 2025 31 March 2024
£'000 £'000
Note (unaudited) (unaudited)
Revenue 3 43,944 38,833
Net operating expenses 4 (35,578) (35,052)
Operating profit 8,366 3,781
Analysed as:
Adjusted EBITDA(1) 12,208 10,252
Depreciation (1,208) (1,259)
Amortisation 8 (1,241) (1,171)
Asset impairment and release of related liabilities - (313)
Equity settled share-based payments charge 10 (1,048) (1,035)
Cash settled share-based payments charge 10 25 10
Adjusting items 4 (370) (2,703)
Group operating profit 8,366 3,781
Finance income 5 241 106
Finance costs 5 (800) (847)
Net finance costs (559) (741)
Share of post-tax profits of equity accounted joint venture 816 219
Profit before taxation 8,623 3,259
Income tax expense 6 (2,366) (1,732)
Profit for the financial year attributable to equity holders of the 6,257 1,527
company
Currency translation differences (net of tax) (1,242) (1,369)
Profit and total comprehensive income for the financial year attributable to 5,015 158
equity holders of the company
Basic earnings per share (pence) 7 3.0 0.7
Diluted earnings per share (pence) 7 2.9 0.7
(1) Adjusted EBITDA, which is defined as profit before net finance costs, tax,
depreciation, amortisation, share based payment charge and adjusting items is
a non-GAAP metric used by management and is not an IFRS disclosure.
All results derive from continuing operations.
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 As at 31 As at 30
March 2025 March 2024 September 2024
£'000 £'000 £'000
(unaudited) (unaudited) (audited)
Assets
Non-current assets
Goodwill and other intangible assets 8 37,100 39,748 37,330
Property, plant and equipment 3,978 5,655 4,947
Investments in equity-accounted joint ventures 2,011 690 1,195
Other receivables 116 195 219
Deferred tax asset 159 - 274
Total non-current assets 43,364 46,288 43,965
Current assets
Trade and other receivables 24,294 24,730 25,982
Current tax asset - 2,304 -
Inventory 21 26 22
Cash and cash equivalents 32,924 19,791 27,174
Total current assets 57,239 46,851 53,178
Total assets 100,603 93,139 97,143
Equity
Called up share capital 209 209 209
Share premium reserve 28,993 28,993 28,993
Treasury shares (1,415) - -
Accumulated exchange differences (3,857) (1,383) (2,615)
Retained earnings 53,877 41,187 46,572
Total equity 77,807 69,006 73,159
Liabilities
Non-current liabilities
Non-current lease liability 9 1,320 1,791 1,757
Provisions 493 451 482
Non-current contingent consideration 11 - 3,110 3,240
Deferred tax liability 424 143 535
Total non-current liabilities 2,237 5,495 6,014
Current liabilities
Current lease liability 9 1,485 2,816 2,485
Trade and other payables 9,808 8,937 9,460
Contingent consideration 11 7,918 6,885 3,811
Current tax liabilities 1,348 - 2,214
Total current liabilities 20,559 18,638 17,970
Total liabilities 22,796 24,133 23,984
Total equity and liabilities 100,603 93,139 97,143
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share premium Treasury shares Accumulated exchange differences Retained earnings Total Equity
£'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 October 2023 (unaudited) 207 28,993 - (14) 38,642 67,828
Profit for the financial period - - - - 1,527 1,527
Currency translation differences (net of tax) - - - (1,369) - (1,369)
Total comprehensive income for the period - - - (1,369) 1,527 158
Issue of shares in the period 2 - - - - 2
Share based payments - - - - 1,035 1,035
Deferred tax on share options - - - - (17) (17)
Total transactions with owners, recognised directly in equity 2 - - - 1,018 1,020
As at 31 March 2024 (unaudited) 209 28,993 - (1,383) 41,187 69,006
Profit for the financial period - - - - 5,078 5,078
Currency translation differences (net of tax) - - - (1,232) - (1,232)
Total comprehensive (loss)/income for the period - - - (1,232) 5,078 3,846
Share based payments - - - - 261 261
Deferred tax on share options and intangibles - - - - 46 46
Total transactions with owners, recognised directly in equity - - - - 307 307
As at 30 September 2024 and 1 October 2024 (audited) 209 28,993 - (2,615) 46,572 73,159
Profit for the financial period - - - - 6,257 6,257
Currency translation differences (net of tax) - - - (1,242) - (1,242)
Total comprehensive (loss)/income for the period - - - (1,242) 6,257 5,015
Purchase of own shares - - (2,863) - - (2,863)
Transfers to employees - - 1,448 - - 1,448
Share based payments - - - - 1,048 1,048
Total transactions with owners, recognised directly in equity - - (1,415) - 1,048 (367)
Balance as at 31 March 2025 (unaudited) 209 28,993 (1,415) (3,857) 53,877 77,807
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
Period ended 31 March 2025 Period ended 31 March 2024 Period ended 30 September 2024
£'000 £'000 £'000
(unaudited) (unaudited) (audited)
Net cash flow from operating activities
Profit for the financial period/year 6,257 1,527 8,954
Income tax 2,366 1,732 3,185
Net interest expense 559 741 928
Share of post-tax profits of equity accounted joint venture (816) (219) (505)
Operating profit 8,366 3,781 12,562
Depreciation charge 1,208 1,259 1,814
Amortisation of intangible assets 1,241 1,171 1,820
Asset impairment and release of related liabilities - 313 -
Equity settled share-based payments 1,048 1,035 566
Cash settled share-based payment (25) (10) 167
Settlement of cash settled share options - - (305)
Provisions - (168) (13)
Decrease in trade and other receivables 1,767 3,463 2,737
(Decrease)/increase in trade and other payables (237) (1,033) 916
Cash generated from operations 13,368 9,811 20,264
Tax paid (3,290) (1,375) (2,638)
Net cash generated from operating activities 10,078 8,436 17,626
Cash flows from investing activities
Purchase of intangible assets (107) (413) (563)
Purchase of property, plant and equipment (197) (244) (466)
Acquisition of subsidiary, net of cash acquired - (17,580) -
Payment of contingent consideration - - (3,120)
Net cash used in investing activities (304) (18,237) (4,149)
Cash flows from financing activities
Purchase of own shares (2,863) (2) -
Lease payments (1,466) (1,064) (1,621)
Lease deposits paid (49) - (50)
Lease deposits received 106 - 25
Proceeds from share issue - - 2
Interest received 195 104 -
Interest paid (104) (145) (182)
Net cash used in financing activities (4,181) (1,107) (1,826)
Net increase/ (decrease) in cash and cash equivalents 5,593 (10,908) 11,561
Cash and cash equivalents at the beginning of the period 27,174 30,727 15,800
Effect of exchange rate changes on cash and cash equivalents 157 (28) (277)
Cash and cash equivalents at the end of the period 32,924 19,791 27,174
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION
1. General Information
The principal activity of LBG Media plc ('the Company') is that of a holding
company and the principal activity of the Company and its subsidiaries ('the
Group') is that of an online media publisher. The Company was incorporated on
20 October 2021 and is a public company limited by shares registered in
England & Wales. The registered office of the Company is 20 Dale Street,
Manchester, M1 1EZ. The Company registration number is 13693251. The Company
is listed on the AIM market of the London Stock Exchange.
A copy of the audited annual statutory accounts for the Group and the Half
Yearly report can be found on the company's website: https://lbgmedia.co.uk
(https://lbgmedia.co.uk) .
2. Basis of preparation
The interim financial information of the Group for the six months ended 31
March 2025, which is unaudited, has been prepared in accordance with the
recognition and measurement principles of International Financial Reporting
Standards ('IFRS') and the accounting policies adopted by the Group and set
out in the Annual Report and Financial Statements for the period ended 30
September 2024. The Directors do not anticipate any changes in these
accounting policies for the year ended 30 September 2025.
The unaudited interim financial information has been prepared on a going
concern basis under the historical cost convention. The unaudited interim
financial information is presented in pounds sterling and all values are
rounded to the nearest thousand pounds (£'000), except where otherwise
indicated. The interim financial information, including for the year ended 30
September 2024, does not constitute statutory accounts for the purposes of
section 434 of the Companies Act 2006. The statutory accounts for the year
ended 30 September 2024 have been delivered to the Registrar of Companies and
the auditor's report on those accounts was unqualified, did not draw attention
to any matters by way of emphasis, and did not contain a statement under
498(2) or 498(3) of the Companies Act 2006.
This unaudited interim financial information has been prepared in accordance
with the requirements of the AIM Rules for Companies and in accordance with
this basis of preparation.
3. Revenue
The trading operations of the Group are in the online media publishing
industry and are all continuing.
Analysis of revenue
The Group's revenue and operating profit relate entirely to its principal
activity.
The analysis of revenue by stream is:
6 months to 31 March 2025 6 months to 31 March 2024
£'000 £'000
(unaudited) (unaudited)
Direct 19,300 17,870
Indirect 24,450 20,771
Other 194 192
43,944 38,833
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION (continued)
4. Net operating expenses
6 months to 31 March 2025 6 months to 31 March 2024
£'000 £'000
(unaudited) (unaudited)
Employee benefit expense 18,242 17,209
Amortisation 1,241 1,171
Depreciation 1,208 1,259
Asset impairment and release of related liabilities - 313
Auditor's remuneration 182 158
Legal and professional 1,424 1,093
Media costs 2,943 2,715
Production costs 4,654 3,191
Travel and expenses 1,081 706
Establishment costs 4,081 3,761
Foreign currency gain (366) (15)
Adjusting items 370 2,703
Other expenses 518 788
Total net operating expenses 35,578 35,052
A breakdown of adjusting items has been provided below:
6 months to 31 March 2025 6 months to 31 March 2024
£'000 £'000
(unaudited) (unaudited)
Costs associated with business reorganisations 370 1,629
Acquisition related fees - 1,141
Tax credits - (67)
Total adjusting items 370 2,703
5. Net finance costs
6 months to 31 March 2025 6 months to 31 March 2024
£'000 £'000
(unaudited) (unaudited)
Unwinding of discount on provisions (12) -
Unwinding of discount on contingent consideration liability (610) (691)
On lease liabilities (104) (145)
Finance costs (726) (836)
Unwinding of discounts on deposits 6 1
Bank interest received 161 94
Finance income 167 95
Net finance costs (559) (741)
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION (continued)
6. Income tax expense
Tax expense included in consolidated statement of comprehensive income:
6 months to 31 March 2025 6 months to 31 March 2024
£'000 £'000
(unaudited) (unaudited)
Current year tax:
Current taxation charge for the period 2,343 1,653
Total current tax 2,343 1,653
Deferred tax:
Current period 23 79
Total deferred tax 23 79
Total tax on profit on ordinary activities 2,366 1,732
Equity items
Current tax - -
Deferred tax - 17
Total tax recognised in equity - 17
Reconciliation of tax charge
The tax assessed for the year is higher (HY24: higher) than at the standard
rate of corporation tax in the UK. The differences are explained below:
6 months to 31 March 2025 6 months to 31 March 2024
£'000 £'000
(unaudited) (unaudited)
Profit before taxation 8,623 3,259
Tax on profit multiplied by standard rate of corporation tax in the UK at 25% 2,156 766
(HY24: 23.5%)
Effects of:
Expenses not deductible 38 28
Non-taxable income (205) (52)
Effects of overseas tax rates 176 (50)
Amounts not recognised 67 583
Share valuation 134 457
Total taxation charge 2,366 1,732
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION (continued)
7. Earnings per share
There is no difference between profit as disclosed within the statement of
comprehensive income and earnings used within the earnings per share
calculation for the reporting periods.
Basic earnings per share calculation:
6 months to 31 March 2025 6 months to 31 March 2024 Period ended 30 September 2024
(unaudited) (unaudited) (audited)
Earnings per share from continuing operations
Earnings, £'000 6,257 1,527 8,954
Number of shares, number (m) 209.1 207.9 209.1
Earnings per share, pence 3.0 0.7 4.3
Diluted earnings per share calculation:
6 months to 31 March 2025 6 months to 31 March 2024 Period ended 30 September 2024
(unaudited) (unaudited) (audited)
Diluted earnings per share from continuing operations
Earnings, £'000 6,257 1,527 8,954
Number of shares, number 214.1 218.1 217.7
Diluted earnings per share, pence 2.9 0.7 4.1
Reconciliation from weighted average number of shares used in basic earnings
per share to diluted earnings per share:
6 months to 31 March 2025 6 months to 31 March 2024 Period ended 30 September 2024
(m) (m) (m)
(unaudited) (unaudited) (audited)
Number of shares in issue at the start of the period 209.1 206.2 206.5
Effect of shares issued in period - 1.7 2.6
Weighted average number of shares used in basic earnings per share 209.1 207.9 209.1
Employee share options 5.0 10.2 8.6
Weighted average number of shares used in diluted earnings per share 214.1 218.1 217.7
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION (continued)
8. Goodwill and other intangible assets
Trade-marks & licenses Software Relation-ships Brand Content library Goodwill Social media pages Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 October 2023 28 1,522 1,300 4,685 300 10,094 1,594 19,523
Additions - 185 - - - - 359 544
Acquired through business - - 3,743 6,556 - 14,773 - 25,072
combinations
Exchange adjustments - - (24) (44) - (91) (20) (179)
At 31 March 2024 28 1,707 5,019 11,197 300 24,776 1,933 44,960
Additions - 211 - - - - - 211
Disposals - (404) - - - - - (404)
Exchange adjustments - - (215) (379) - (849) (30) (1,473)
At 30 September 2024 28 1,514 4,804 10,818 300 23,927 1,903 43,294
Additions - 107 - - - - - 107
Exchange adjustments - - 132 224 - 523 31 910
At 31 March 2025 28 1,621 4,936 11,042 300 24,450 1,934 44,311
Accumulated Amortisation
At 1 October 2023 28 525 646 2,328 300 - 220 4,047
Charge for the year - 184 278 542 - - 169 1,173
Exchange adjustments - - (1) (3) - - (4) (8)
At 31 March 2024 28 709 923 2,867 300 - 385 5,212
Charge for the year - 157 295 586 - - 174 1,212
Elimination on disposal - (404) - - - - - (404)
Exchange adjustments - - (22) (32) - - (2) (56)
At 30 September 2024 28 462 1,196 3,421 300 - 557 5,964
Charge for the year - 150 303 580 - - 208 1,241
Exchange adjustments - - 4 2 - - - 6
At 31 March 2025 28 612 1,503 4,003 300 - 765 7,211
Net book value
At 31 March 2024 - 998 4,096 8,330 - 24,776 1,548 39,748
At 30 September 2024 - 1,052 3,608 7,397 - 23,927 1,346 37,330
At 31 March 2025 - 1,009 3,433 7,039 - 24,450 1,169 37,100
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION (continued)
9. Borrowings
6 months to 31 March 2025 6 months to 31 March 2024 Period ended 30 September 2024
£'000 £'000 £'000
(unaudited) (unaudited) (audited)
Current
Lease liabilities 1,485 2,816 2,485
1,485 2,816 2,485
Non-current
Lease liabilities 1,320 1,791 1,757
1,320 1,791 1,757
Total borrowings 2,805 4,607 4,242
6 months to 31 March 2025 6 months to 31 March 2024 Period ended 30 September 2024
£'000 £'000 £'000
(unaudited) (unaudited) (audited)
Amount repayable
Within one year 1,485 2,816 2,485
In more than one year but less than two years 742 629 810
In more than two years but less than three years 420 594 637
In more than three years but less than four years 158 409 310
In more than four years but less than five years - 159 -
2,805 4,607 4,242
During the period to 31 March 2025, £1,466k (HY24: £1,064k) was paid by the
Group in relation to lease payments and £104k (HY24: £145k) of interest paid
in relation to leases.
10. Share based payments
The Group operates a number of Share Option Schemes under which Executive
Directors, Non-Executive Directors, managers and team members of the Group
are granted options over shares. The Group did not enter into any share based
payment transactions with other parties other than employees during the
current or prior period.
The charge recognised from equity-settled share-based payments in respect of
employee services received during the year is £1,048k (HY24: £1,035k).
The credit recognised from cash-settled share-based payments in respect of
employee services received during the year is £25k (HY24: £10k).
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION (continued)
11. Contingent consideration
6 months to 31 March 2025 6 months to 31 March 2024 Period ended 30 September 2024
£'000 £'000 £'000
(unaudited) (unaudited) (audited)
At beginning of the period 7,051 - 9,539
Recognition on the acquisition of subsidiary undertakings - 9,634 -
Unwinding of discount(1) 610 691 1,014
Settlement of consideration - - (3,120)
Effect of exchange rates on the settlement of consideration - - (13)
Exchange adjustment 257 (330) (369)
At period end 7,918 9,995 7,051
Analysed as:
Amounts falling due within 12 months 7,918 6,885 3,811
Amounts falling due after one year - 3,110 3,240
At period end 7,918 9,995 7,051
(1) The discount rate used for the unwinding of the contingent consideration
is 17.6%.
The contingent consideration is in respect of the acquisition of Betches
Media, LLC on 17 October 2023. Refer to the 2024 annual report for further
details. Since the contingent consideration is payable in stages, it was
discounted to fair value on the acquisition date and subsequently unwound to
profit and loss.
Contingent consideration of $4m for the first tranche of Earnout 1 was paid
within July 2024 as a result of the 2023 performance target being achieved.
12. Related party transactions
The following transactions were carried out with related parties:
6 months to 31 March 2025 6 months to 31 March 2024 Period ended 30 September 2024
£'000 £'000 £'000
(unaudited) (unaudited) (audited)
Entity controlled by key management personnel
Purchase of services (1) 240 268 364
Transactions with Pubity Group Ltd (2) (130) 16 (163)
110 284 201
(1) Services are purchased from Kamani Commercial Property Ltd (an entity
controlled by a significant shareholder) on normal commercial terms and
conditions. Kamani Commercial Property Ltd is a firm belonging to Mahmud
Abdullah Kamani, a former Director of the Group. The Group leases the
Manchester Dale Street properties from Kamani Commercial Property Ltd. The
'purchase of services' in the table above relates to the payments made in the
year for the Dale Street properties for both rent and service charges.
Payments made to 31 March 2025 totalled £240k (30 September 2024: £364k, 31
March 2024: £268k). The amount outstanding of the lease liability as at 31
March 2025 is £995k (30 September 2024: £1,199k, 31 March 2024: £1,237k).
The outstanding service charge balance at 31 March 2025 is £17k (30 September
2024: £17k, 31 March 2024: £nil) and outstanding property insurance is £nil
(30 September 2024: £nil, 31 March 2024: £nil).
(2) During the period, the Group incurred transactions totalling £130k (30
September 2024: £163k, 31 March 2024: £16k) with Pubity Group Ltd, a joint
venture of LBG Media plc. These transactions were conducted on normal
commercial terms. As at 31 March 2025, £49k was due from Pubity Group Ltd (30
September 2024: £51k, 31 March 2024: £nil).
ALTERNATIVE PERFORMANCE MEASURES (APMs) and GLOSSARY OF TERMS
Introduction
In the reporting of financial information, the Directors have adopted various
Alternative Performance Measures (APMs) of financial performance, position or
cash flows other than those defined or specified under International Financial
Reporting Standards (IFRS). These measures are not defined by IFRS and
therefore may not be directly comparable with other companies' APMs, including
those in the Group's industry. APMs should be considered in addition to IFRS
measures and are not intended to be a substitute for IFRS measurements.
Purpose
The Directors believe that these APMs provide additional useful information on
the underlying performance and position of LBG Media plc. APMs are also used
to enhance the comparability of information between reporting periods by
adjusting for non-recurring or uncontrollable factors which affect IFRS
measures, to aid the user in understanding LBG Media plc's performance.
Consequently, APMs are used by the Directors and management for performance
analysis, planning, reporting and incentive-setting purposes and have remained
consistent with prior year.
The key APMs that the Group has focused on this period are as follows:
Adjusted EBITDA This profit measure shows the Group's Earnings before Interest, Tax,
Depreciation and Amortisation adjusted for asset gains and losses, share based
payments (including employers NIC as appropriate) and adjusting items.
Adjusted EBITDA is used for internal performance analysis to assess the
execution of our strategies. Management believe that this adjusted measure is
an appropriate metric to understand the underlying performance of the Group.
A glossary of other terms used in the interim financial information can be
found below:
Web sessions Web sessions are unique interactions with our website in the six months to the
end of March 2025.
Global audience Includes global social media platform followers, unique podcast listeners and
global monthly online users to LBG Media websites.
Repeat client revenue Repeat client revenue represents percentage of H1 25 Direct revenue from
clients that ran campaigns with us in 2023 and 2024.
AIM The Alternative Investment Market (AIM) is a sub-market of the London Stock
Exchange.
Bookings Bookings represents year-on-year movement in future value of contracts won.
Multi-channel Refers to the Group's portfolio of brands.
Reach Reach is the total number of people who viewed our content within a particular
time period.
Engagements The measurement of a like, share or comment on social media platforms.
Web yield Daily web sessions reflect unique individual interactions with our website.
Yield per session is per 1,000 sessions.
Cash conversion Cash conversion is calculated as operating cash flow divided by adjusted
EBITDA.
ANZ Refers to the Group's operations in Australia and New Zealand.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FJMLTMTJTBJARecent news on LBG Media
See all newsREG - LBG Media PLC - Half-year Results
AnnouncementREG - LBG Media PLC - Holding(s) in Company
AnnouncementREG - LBG Media PLC - Appointment of Non-Executive Director
AnnouncementREG - LBG Media PLC - Half-Year Trading Update and Notice of Results
AnnouncementREG - LBG Media PLC - Result of AGM
Announcement