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

LBG MediaAnnouncement

24/07/2024 07:00

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RNS Number : 5475X  LBG Media PLC  24 July 2024

       24 July 2024

LBG Media plc

("LBG Media", the "Group" or the "Company")

Trading update, notice of half year results and change of accounting reference
date

LBG Media, the global digital entertainment business with a focus on young
adults, is pleased to announce a trading update for the half year ended 30
June 2024 ("HY24" or "the period").

Trading update

·      The Group expects to report first half revenue of £42.3m (HY23:
£27.2m) representing growth of 55%. Excluding the Betches acquisition,
organic growth was 29%.

o  Direct revenue increased by 92% to £22.0m (HY23: £11.5m), and by 33%
organically, reflecting strong performance in the UK and continued growth in
the US, as well as a number of successful campaign activations across the UEFA
Euro 2024 tournament.

o  Indirect revenue increased by 28% to £19.7m (HY23: £15.3m), or 27%
organically, with further acceleration of Web indirect that has been
performing strongly, enhancing broader revenue diversification.

o  Global audience increased to 493m, up from 410m at HY23 and 452m at
FY23.(1)

·      Adjusted EBITDA expected to be £10.2m (HY23: £3.0m) an increase
of 240% driven by operational leverage, the Betches acquisition and a more
efficient ANZ operating model that is delivering benefits as planned. On an
organic basis adjusted EBITDA has increased by 190%.

·      Betches contributed £7.1m of revenue and £1.5m of adjusted
EBITDA in HY24 as integration continues to progress well.

·      Cash and cash equivalents at 30 June 2024 of £26.6m compared to
£15.8m at 31 December 2023.

·      The UEFA Euro 2024 tournament has given the Group a number of
opportunities to work with brands seeking to access our young adult audience,
with notable campaigns including Euros-themed editions of the hugely popular
original series of "Snack Wars" sponsored by Uber Eats.

Outlook

 

Whilst advertising revenues will continue to be typically weighted towards H2,
this year is expected to be less pronounced for us given the positive effect
of UEFA Euro 2024 campaigns in the first half and the acquisition of Betches,
which has a more even split of revenue.

The global implementation of a new commercial model for Facebook at the end of
H1 encourages publishers to focus on creating engaging, high-quality content,
which firmly aligns with our expertise. As the largest publisher on Facebook,
we have consistently demonstrated agility in adapting to platform changes. The
recent implementation has created some short-term volatility within Indirect
Social revenue, but we are confident in our business model and strategies to
continue progress along our line of sight to £200m of revenue.

Given the strong start to the year supported by the Group's increasingly
diversified revenue model, balanced by the volatility caused by the new
Facebook commercial model, the Board remains confident in the outlook for the
full year and that performance will be in line with market expectations.(2)

CEO, Solly Solomou commented:

"It has been a strong start to the year as the business continues to make good
progress along the line of sight to £200m of revenue. Performance in Direct
and Web highlight the strength of our diverse revenue model and the
operational changes in ANZ are delivering planned benefits, with further
expansion of our partnership within the APAC region. We have continued the
integration of our US commercial teams to leverage early customer wins by
presenting a 'one stop shop' for brands wanting to reach a diverse young adult
audience. I am extremely excited by the opportunities ahead as our diverse
revenue model and strong momentum position us well for continued success."

(1) Global Audience reflects social followers, unique podcast listeners and
average monthly website users in the 6 months to 30 June 2024.

(2) External market consensus for year ending 31 December 2024 is currently:
Revenue £86.0m and Adjusted EBITDA £23.5m.

Notice of Half Year Results

LBG Media intends to announce its 2024 half year results on 18 September 2024.

Change of accounting reference date

LBG Media also announces that it has changed its accounting reference date and
financial year end from 31 December to 30 September. Going forward, interim
and annual accounts will be prepared and published for the six months ended 31
March and 12 months ended 30 September, respectively.

The Company has changed its financial year end to better guide business
planning and investment pacing. Moving the seasonal calendar Q4 spend into the
first half of the financial year will improve visibility over market dynamics
and enable greater transparency on performance for external stakeholders. The
Company intends to provide expanded proforma disclosures as part of future
statements to support transparency and clarity on comparative periods.

As a result of this change, the Company's future reporting calendar is
expected to be as follows:

·      Publication of unaudited interim accounts for the six-month
period ending 30 June 2024 on 18   September 2024;

·      Publication of audited accounts for the nine-month period ending
30 September 2024 no later than 31 January 2025; and

·      Publication of unaudited interim accounts for the six-month
period ending 31 March 2025 no later than 30 June 2025.

 

For further information please contact:

 LBG Media plc                                              investors@ladbiblegroup.com

Solly Solomou, Co-founder & CEO

Richard Jarvis, CFO

Mark Mochalski, Investor Relations

Matthew Lee, Investor Relations
 Zeus (Nominated Adviser & Broker)                          Tel: +44 (0) 161 831 1512

Dan Bate / Nick Cowles (Investment Banking)               www.zeuscapital.co.uk (http://www.zeuscapital.co.uk/)

Benjamin Robertson (Equity Capital Markets)
 Peel Hunt LLP (Joint Broker)                               Tel: +44 (0) 207 418 8990
 Neil Patel                                                 www.peelhunt.com
 Benjamin Cryer

Kate Bannatyne
 Media Enquiries                                            Tel: +44 (0) 20 7466 5000

Burson Buchanan                                           LBGmedia@buchanan.uk.com

Richard Oldworth / Chris Lane / Toto Berger / Jack Devoy

 

 

Notes to editors

LBG Media is a global digital entertainment business with a focus on young
adults and 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 specialist brands using social media platforms
(primarily Facebook, Instagram, Snapchat, X, 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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