- Total group revenue up 55% to £42.3 million
- Record audience of 494 million globally
- Year-to-date shares up 71%
Shares in LBG Media (LBG:AIM) were up nearly 3% at 139.5p in morning trading as the LADBible publisher reporting a strong set of first-half results.
Total group revenue rose 55% to £42.3 million for the six months ending 30 June 2024 compared to £27.2 million last year.
The multi-channel digital publisher said revenue momentum was strong with organic growth of 29% and a record audience of 494 million globally, of which 141 million is in the US.
US expansion remains key for LBG in the medium term following the acquisition of millennial women focused title Betches Media last October.
EUROS 2024 BENEFIT
The direct division benefited from the UEFA Euro 2024 football championships.
‘While the revenue contribution was not disclosed, we understand that the 2022 FIFA World Cup contributed circa £3 million of revenue. If we assume a comparable contribution, organic growth would have been 18% in the first half, which would also be the strongest first half growth for LBG as a listed business,’ said analysts at investment bank Berenberg.
LBG reiterated its outlook with the board confident of delivering on market expectations for the year ending 31 December.
The company said it was continuing to build relationships with blue-chip brands with a half year 2024 brief conversion of 33% and repeat client revenue of 75%.
REDUCING DEPENDENCY ON FACEBOOK
Berenberg highlighted the increase in revenue from its web programmatic business which now accounts for 45% of indirect revenue ‘which is supporting increasing advertising yields and is helping LBG to reduce its dependency on Facebook’.
LBG entered into an agreement with Facebook in 2018 to share revenue from in-video advertising within Facebook.
Berenberg analysts believe that LBG’s content continues to resonate strongly with its core young adult audience and ‘that is why brands continue to come to LBG to target this difficult to reach demographic’.
