REG - LBG Media PLC - Trading update and notice of full year results

LBG MediaAnnouncement

08/02/2022 07:00

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RNS Number : 9465A  LBG Media PLC  08 February 2022

     8 February 2022

 

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 Company's obligations under Article 17 of
MAR.

 

LBG Media plc

(The "Company" or "Group")

Trading update and notice of full year results

 

LBG Media, the UK-based multi-brand, multi-channel digital youth publisher, is
pleased to announce a trading update for the full year ended 31 December 2021
("FY21").

Trading headlines

·   FY21 revenue anticipated to be at least £54m, slightly ahead of
expectations and representing annual growth of c.80% (FY20: £30.2m)

·    FY21 adjusted EBITDA* anticipated to be slightly ahead of
expectations (EBITDA consensus of £16.2m for FY21)

·    Net cash at 31 December of £34.3m (2020: net debt £6.3m),
following strong cash generation in the year and the £30m capital raise at
IPO in December 2021

Both of the Group's core routes to market, Direct revenue and Indirect
revenue, contributed to the strong performance during the year.

·    Direct revenue growth was driven by a significant increase in
content marketing and direct display sales in the UK, Australia and Ireland.
The Group continued to expand its remits with existing clients, and won new
customers across a diverse range of sectors

·  Indirect revenue increased significantly, primarily due to a 97%
increase in views of Group-generated content to 62.9bn (2020: 31.8bn), and
increased monetisation across the social media platforms during 2021

CEO, Solly Solomou commented:

"LBG Media delivered an outstanding performance in 2021, both financially and
operationally. The business operates in structurally growing markets, and it
is a testament to our well-invested operations that we have the platform, the
audience and the knowhow to deliver relevant content to a coveted,
hard-to-reach youth audience across a broad portfolio of distinct brands. This
positions us very well for the future, as we execute our stated growth
strategy from a position of financial and operational strength."

Notice of full year results

The Group intends to announce its 2021 full year results on Thursday 21 April
2022.

 

* 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                                              Via Buchanan

 Tim Croston, CFO
 Zeus Capital Limited                                       Tel: +44 (0) 161 831 1512

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

 Dan Bate (Corporate Finance)

 Nick Cowles (Corporate Finance)

 Benjamin Robertson (Equity Capital Markets)
 Media enquiries                                            Tel: +44 (0) 20 7466 5000

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

 Richard Oldworth / Chris Lane / Toto Berger / Jack Devoy

 

Notes to editors

LBG Media is a multi-brand, multi-channel digital youth publisher and is a
leading disrupter in the digital media and social publishing sectors. The
Group produces and distributes digital content across a range of mediums
including video, editorial, image, audio, and experience (virtual and
augmented reality). Since its inception in 2012, the Group has curated a
diverse collection of ten core specialist brands using social media platforms
(primarily Facebook, Instagram, Snapchat, Twitter, YouTube and TikTok) and has
built multiple websites to reach new audiences and drive engagement. Each
brand is dedicated to a distinct popular interest point (e.g. sport, gaming
etc.), which is designed to achieve broader engagement, increase relevance and
ultimately build a loyal community of followers.

The Group operates two core routes to market: Direct revenue, which is
principally generated from the provision of content marketing services to
corporates, brand owners, marketing agencies and other entities such as
government bodies and where the relationship with the client is held directly
by LBG Media; and Indirect revenue, which is generated via a third-party, such
as a social media platform or via a programmatic advertising exchange / online
marketplace, which holds the relationship with the brand owner or agency.

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