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

LBG MediaAnnouncement

26/07/2023 07:00

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RNS Number : 1741H  LBG Media PLC  26 July 2023

   26 July 2023

 

 

LBG Media plc

(The "Company" or "Group")

Trading update and notice of half year results

 

LBG Media, the UK-based multi-brand, multi-channel digital youth publisher, is
pleased to announce a trading update for the half year ended 30 June 2023
("HY23" or "the period").

Trading update

·      The Group expects to report first half revenue of £27.2m (HY22:
£24.8m) representing growth of approximately 10% and reflective of the
seasonality we anticipate between H1 and H2.

o  Direct revenues increased by approximately 9% to £11.5m (HY22: £10.6m)
driven by the Group's growing reputation with global brands and successful
campaigns. Visibility of booking levels for the second half of the year is
also improved compared to this time last year.

o  Indirect revenue increased by approximately 13% to £15.3m (HY22:
£13.6m). Year on year content view growth improved by over 60%, enabling the
Group to greater capitalise on the market shift to short-form content that
occurred in the second half of last year.

·      HY23 adjusted EBITDA is expected to be approximately £3m, (HY22:
£1.6m) an increase of over 80% on last year.

·    Cash and cash equivalents as at 30 June 2023 of £32.7m compared to
£29.3m at 31 December 2022.

Acquisition update

In line with the Group's inorganic growth strategy, during the period LBG
Media completed the bolt-on asset acquisition of Lessons Learned in Life
(LLIL), an under-monetised asset that is on track to achieve payback within
its first year.

Outlook

 

Normal seasonality in advertising spend means that revenue, and, with the
relatively even split of costs, significantly more so profitability, are
weighted towards the second half of the year. The Board believes that the
Group's highly differentiated offering and strategic programme will continue
to fuel our growth and combined with the momentum we take into H2, the Board
can confirm the outlook for the full year remains in line with market
expectations(1).

 

CEO, Solly Solomou commented:

"We have delivered a strong first-half performance in line with our
expectations, notwithstanding the tough macroeconomic backdrop. The
significant increase in content views demonstrates our effective ongoing
engagement with the hard to reach 18-34 year-old demographic: this is a highly
attractive proposition for advertisers and will continue to fuel our growth.

LBG Media has a well-defined set of strategic growth pillars, a strong balance
sheet with which to execute on and the ability to capitalise on the growth
drivers - I'm excited by the opportunities that lie ahead."

Notice of half year results

The Group intends to announce its 2023 half year results on 20 September 2023.

(1) External market consensus for year ending 31 December 2023 is currently:
Revenue £69.3m and Adjusted EBITDA £19.4m.

 

For further information please contact:

 LBG Media plc                                              Via Buchanan

 Solly Solomou, Co-founder & CEO

 Richard Jarvis, CFO

 Mark Mochalski, Investor Relations

 Fiona O'Nolan, Investor Relations                          investors@ladbiblegroup.com
 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)
 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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