REG - LBG Media PLC - Pre-Close Trading Update

LBG MediaAnnouncement

20/12/2023 07:00

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RNS Number : 3775X  LBG Media PLC  20 December 2023

20 December 2023

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Group's obligations under Article 17 of MAR.

 

LBG Media plc

("LBG Media" or the "Group")

Pre-Close Trading Update

 

LBG Media plc, the owner of the global leader in youth publishing LADbible
Group, announces a pre-close trading update for the full year ending 31
December 2023 ("FY23").

Pre-Close Trading Update

The board of LBG Media is pleased with the strategic and financial progress in
FY23 as the Group further deepened its market leadership position, now with
over 440M followers. Direct blue chip advertiser relationships have grown
significantly.

The Board expects to report revenue growth from £62.8m last year to
approximately £67m for FY23.

We also expect adjusted EBITDA* to have grown at least 8% from £15.7m last
year to at least £17m in FY23 and with a second half performance of at least
£14m, having grown that from £3m reported in the first half of FY23.
Adjusting for a reduction in the year-on-year profit contribution from
Australia, our underlying adjusted EBITDA would have grown by over 30%
year-on-year.

We have significantly accelerated our progress into the US this year with the
acquisition of Betches Media in October 2023, for an initial consideration of
$24m.  Both performance and integration are going to plan and its
contribution will naturally be much more significant next year as we progress
our plans into the US market, which is worth over $363bn.

In Australia we have implemented a number of positive changes to make the
operating model more efficient from January 2024. This is in response to a
year-on-year reduction in Australia's profitability of approximately £3m,
with our improvements not only reversing the reduction felt this year but also
providing a more efficient model from which to grow, and a potential
partnership template to consider for other regions in the future. Our
improvements in Australia combine the centralisation of social and web
operations into our UK centre of excellence at a more efficient cost base for
the indirect revenues and for direct revenues, leveraging a new multi-year
strategic partnership model recently announced with the largest online media
publisher in the country.

Our UK and Ireland businesses have continued to perform well this year
highlighting the strength of our differentiated offering, our unrivalled
audience growth and high levels of engagement against our competitors as well
as the quality of the talent within the business. This is further evidenced by
our high conversion rates and significant roster of new and growing clients
working with us.

 

Outlook

The Board remains confident in the growth outlook for 2024, supported by the
progression of our US ambitions with Betches Media, realising the benefits of
our new operating model in Australia as well as the opportunities represented
by key advertising moments such as Euro 2024 and the Olympics.

 

* Earnings before interest, tax, depreciation, and amortisation adjusted for
loss on disposal of intangible assets, share based payments and exceptional
items.

 

 

 

For further information please contact:

 LBG Media plc                                 investors@ladbiblegroup.com

 Solly Solomou, Chief Executive Officer

 Richard Jarvis, Chief Financial Officer

 Mark Mochalski, Investor Relations

 Fiona O'Nolan, Investor Relations

 Zeus Capital Limited                          Tel: +44 (0) 161 831 1512

 (Nominated Adviser & Broker)                  www.zeuscapital.co.uk (http://www.zeuscapital.co.uk/)

 Dan Bate / Nick Cowles (Investment Banking)

 Benjamin Robertson (Equity Capital Markets)
 Peel Hunt LLP (Joint Broker)                  Tel: +44 (0) 207 418 8990

                                             www.peelhunt.com
 Neil Patel

 Paul Gillam

 Richard Chambers
 Media enquiries:                              Tel: +44 (0) 20 7466 5000

 Buchanan                                      www.buchanancomms.co.uk (http://www.buchanan.uk.com/)

 Richard Oldworth / Chris Lane / Toto Berger

 

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