LadBible and UNILAD parent company LBG Media PLC (AIM:LBG) is struggling to monetise its expanding audience base across the UK, US and Australia.
According to the London-listed online publisher’s full-year results, group revenues increased 15% to £62.8mln, though profit before tax (PBT) decreased 10% to £7.3mln while the group’s cash position dropped 15% to £29.3mln due to various liabilities including IPO-related expenses, investing activities and receivables.
Basic earnings per share fell 13% to 2.6p.
Despite the missing earnings targets, reach expanded significantly with global reach increasing 39% to 366 million and total content views increasing 56% to 98 billion.
Why the mismatch?
In LBG’s words, the group “produces and distributes digital content across a range of mediums including video, editorial, image, audio, and experience”.
Others may refer to the group’s output as “clickbait”, easily digestible online content fed algorithmically to the hundreds of millions of TikTokers, Instagrammers and Facebookers comprising LadBible’s distraction-prone viewership.
However, not everything LadBible produces is disposable. It's “Minutes With…” YouTube series, for instance, which conducts interviews with trauma survivors and marginalised voices, regularly racks up tens of millions of views per episode.
“In 2022, we strived to build further credibility amongst marketing, publishing and original content industries, as the most innovative, creative and effective social publisher in the UK,” said the company.
But TikTok is clearly LabBible’s stronghold- followers on the ByteDance-owned social media platform grew by 72% year on year.
“We are now the number one news publisher on TikTok,” boasted LBG. The problem is: TikTok is extremely hard to monetise.
A Mashable article estimated that 1,000 TikTok views nets between two to four cents for content creators. YouTube, on the other hand, can get you up to US$18 per 1,000 plus, plus there is greater potential for paid promotions.
TikTok is also a ticking time bomb for its plethora of content creators: The app is increasing being scrutinised by major governments including the US, UK and Australia; LabBible’s three major markets.
“'We ended 2022 with a great deal of positive momentum, as evidenced by our record direct revenue performance for the fourth quarter, and with this momentum continuing into 2023 I am excited by what lies ahead for the business,” said chief executive Solly Solomu.
Which is all well and good, but monetising the group’s extensive audience clearly remains a paramount challenge.