LBG Media posts solid growth in first results after IPO

21st Apr 2022 12:15

(Sharecast News) - Youth-focussed digital publisher LBG Media reported revenue of £54.5m in its full-year results on Thursday, up 81% year-on-year, with a "strong performance" driven by increases in both direct and indirect income streams.

The AIM-traded firm said direct revenue grew 58% to £22.4m for the 12 months ended 31 December, which it put down to "significant increases" in content marketing and direct display sales in the UK, Australia and Ireland.

Indirect revenue, meanwhile, leapt 103% to £29.7m, primarily due to a 97% increase in views of group-generated content to 63 billion, and increased monetisation across its social media platforms during the year.

Adjusted EBITDA totalled £16.8m, up 206% year-on-year, as its adjusted EBITDA margin improved to 31% from 18%.

Cash and cash equivalents totalled £34.3m at year-end, up from £6.9m a year earlier, with cash conversion coming in at 122%.

The board put the cash performance down to strong cash generation in the year, as well as the gross proceeds of £30m of growth capital raised on its initial public offering.

Looking ahead, LBG said digital advertising spend totalled £336bn in 2021, and with continued acceleration in digital transformation and growing e-commerce activity expected, it was forecast to grow at a 12% compound annual growth rate until 2024.

Operating within some of the fastest growing segments of the market, the company said it was expecting to see significant continued growth opportunities in three main areas - geographically, through expansion organically into new geographies; mergers and acquisitions, with a focus on geographic and demographic diversification; and the continued development of capabilities to produce innovative content and drive engagement.

At the current, early stage of 2022, year-to-date performance was in line with market expectations, and the group said it was on track to deliver against revenue growth expectations for the full year.

As with prior years, revenue and EBITDA were affected by seasonality in advertising spend.

Margins were therefore weighted to the second half, given that costs were "relatively flat" throughout the year.

"I am delighted with the outstanding performance and significant growth that LBG Media has delivered during 2021, alongside our successful listing on the London Stock Exchange," said chief executive officer Solly Solomou.

"Through ongoing investment in our teams, combined with our focused and relevant content, we have continued to see growth in our global audience and followers."

Solomou said providing "unmatched access" to an audience that brands and organisations typically found the hardest to reach made LBG a "particularly attractive partner" to an increasing number of businesses, government organisations and other entities.

"These factors position us well for the future and I am incredibly excited by the opportunities that lie ahead."

At 1014 BST, shares in LBG Media were down 3.44% at 169p.