LBG Media PLC (AIM:LBG), the owner of LADbible and Betches, reported a 240% increase in underlying earnings in the first half, as well as a swing into statutory profits.
This was off the back of the digital publisher lifting revenue 55% to £42.3 million for the six months to June, as detailed in a July update, where the most prominent factors included a 92% leap in direct advertising revenue to now make up more than half of turnover.
Unveiled in today’s interims, the AIM-listed group revealed that it amassed a record half-year audience of 494 million globally, of which 141 million was in the US.
It said this highlighted its “unparalleled engagement and extensive reach with young adult audiences”, enabling it to bag direct deals with brands including Uber Eats as a sponsor of the ‘Snack Wars’ video series (pictured), along with new wins with Costa Coffee, Wilkinson Sword and GetYourGuide.
It was the progress in US that was also eye-catching, where LBG purchased Betches Media last October and said it is now presenting brand partners “with a 'one stop shop' when wanting to connect with the young adult audience” and wins included Boston Beer Co, NYX and White Castle.
Betches accounted for £7.1 million of group revenue and £1.5 million of adjusted EBITDA in the six months. Since June, the first earnout payment for the acquisition was made, of $4 million.
This helped group adjusted EBITDA grow more than threefold to £10.2 million from £3 million, of which organic growth was 190%.
A reported pre-tax profit of £7.1 million was recorded, from a £1.2 loss last time. Adjusted cash conversion of 152% resulted in a healthy cash pile £26.6 million at the period end, up from £15.8 million.
Chief executive Solly Solomou said the performance “demonstrates excellent progress along our line of sight to £200 million of revenue and showcases our team's success in diversifying income and strengthening our operating model.
"I am more excited than ever by the opportunity that lies ahead, particularly in the US, where we are going from strength to strength and where the complementary nature of our combined businesses is already demonstrating success. Our thoughtful and engaging campaigns, which frequently deploy messages of social responsibility, remain central to our mission,” Solomou said in a statement alongside the results.
He and the board expressed their confidence in meeting market expectations for calendar 2024. LBG announced in July that its financial year is shifting to a September year end, with the next set of results to be published being nine-month results in January 2025.