- Total group revenue up 13%
- 17 major new client wins
- Pre-tax profit of £8.6 million
Shares in LBG Media (LBG:AIM) gained over 4% to 98p in morning trading as the LADBible publisher reported a 13% rise in total revenue for half-year lifted by significant client wins.
The company, which focuses on content for young adults, saw a 165% increase in pre-tax profit to £8.6 million for the six months ending 30 March with ‘strong demand from blue-chip brands.’
LBG’s clients include Netflix (NFLX:NASDAQ), Dunkin’ Donuts, Boston Beer, PepsiCo (PEP:NASDAQ) and NXY Cosmetics.
The company also saw its US audience grow to 145 million, up 11% compared to 130 million last year.
While the group delivered double digit growth in the first half, it expressed caution around heightened macroeconomic volatility and ‘the impact of tariff uncertainty on advertising spend and advertising yields’.
WHAT DID THE CEO SAY?
Chief executive Solly Solomou told Shares: ‘We have tapped into a fast-growing Gen Z audience and our millennial [numbers] continue to grow in the US with the acquisition of Betches Media two years ago.
‘In relation to technology we have integrated generative AI (artificial intelligence) within the business, and it plays a role in our story telling and content creation.’
ROBUST GROWTH CONTINUES
Alastair Reid, analyst at Investec, said: ‘Delivering double-digit revenue growth in a period of such macroeconomic uncertainty is a testament to the underlying structural drivers of growth that LBG Media enjoys.
‘Structural shifts in the advertising market and an expanding footprint in the US (helped by a net cash position to support accretive M&A) should provide a runway of growth that is not properly reflected in the LBG Media valuation.’
