- Challenging economic backdrop
- Stronger second half
- CFO Tim Croston retires
Shares in LADBible publisher LBG Media (LBG: AIM) reversed earlier losses to advance 3.9% to 80p despite the multi-channel digital publisher announcing a 10% fall in 2022 pre-tax profit to £7.3 million.
LBG blamed ‘a challenging economic backdrop’ for the fall, however said the group’s performance was stronger in the second half of 2022.
STRONGER SECOND HALF
LBG Media CEO Solly Solomou told Shares: ‘We have progressed in our international markets like the US [including opening an office in New York ahead of launching operations in 2023]. LBG has also made some bolt-on acquisitions and enhanced our brand partnerships.’
Group revenue increased by 15% to £62.8 million because of a strong performance from their direct and indirect revenue streams.
Direct revenue increased by 17.1% year-on-year to £27.8 million compared to £23.7 million in 2021 and indirect revenue increased by 13% to £33.6 million compared to £29.7 million in 2021.
Other highlights included a 39% increase in their global audience year-on-year and a 72% increase year-on-year in their TikTok followers.
FINANCE CHIEF TO EXIT
Chief financial officer Tim Croston chose this time to announce his retirement to the LBG board.
Croston will step down with immediate effect but will continue within the business for the next few months to ensure a ‘smooth transition’ to Richard Jarvis, group commercial finance director of GB Group (GBG:AIM).
Jarvis joined LBG on 11 April 2023. He has previously been with GB Group since 1996 holding several roles across the business. The LBG board acknowledged the significant role Croston has played as CFO over the years.
LBG MEDIA SHOWS RESILIENCE
Liberum said LBG Media demonstrated ‘resilience’ against ‘a tough macroeconomic backdrop’.
Liberum believes LBG Media remains ‘highly attractive for advertisers’ wanting to gain access to a hard to reach demographic.
‘LBG Media boasts a global audience of 366 million across all of its brands’ websites and social media channels. Of this audience, an estimated circa 66% falls in the attractive 18-34-year-old age group.’
The broker added: ‘Momentum exiting Q4 has continued into Q1, and the outlook has been reiterated for FY23E. LBG has setup a US office in the year and made a number of smaller bolt on acquisitions.’
