For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240724:nRSX5475Xa&default-theme=true
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.
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 TSTEAPXDASALEFA