LBG Media PLC's (AIM:LBG) CEO Solly Solomou hailed 2024 as a 'transformational year' as the company weighed in with forecast-beating prelims - and said the new financial year had begun well.
Investors were told that strong momentum from its US expansion and diversified revenue base supported management’s confidence in achieving a 10% top-line growth as the business targets £200 million in annual turnover.
The digital entertainment group, which targets young adults, reported total revenues of £86.2 million for the period to September 30, a 22% year-on-year increase.
Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 16% to £24.5 million, reflecting growth in Direct and Web revenues and the contribution from the October 2023 acquisition of US-based media brand Betches.
Direct revenues grew 39% to £43.9 million, accounting for 51% of total turnover, while Indirect revenues, representing advertising shared with social platforms, increased 6% to £40.7 million. Other revenue, primarily licensing and events, rose 60% to £1.6 million.
Operationally, the company reported progress in deepening client relationships, securing nine accounts generating over $1 million annually, and expanding partnerships with brands such as Google. Its global audience grew 19% to 503 million, including 143 million in the US.
The integration of Betches has delivered early successes, with key client wins such as Netflix, L’Oréal, and White Castle contributing to a strong US pipeline. The US market now represents a cornerstone of LBG Media’s growth strategy, with management indicating potential further investment to accelerate progress.
Despite temporary challenges from Facebook’s commercial model changes in mid-2024, which impacted Indirect revenues, performance normalised by the start of the new financial year. The company ended the year with cash reserves of £27.2 million, supported by a 105% cash conversion rate.
LBG Media begins FY25 with double-digit growth in its first quarter, a robust outlook across its Direct, Indirect, and US segments, and confidence in the long-term sustainability of its diversified business model.
CEO Solomou said: "We are running more campaigns for more blue-chip brands, particularly in the US, the largest advertising market in the world. We have been able to drive this momentum for two reasons.
"Firstly, our acquisition of Betches has extended our already-strong reach with US social audiences and our combined business is performing well.
"Secondly, LBG Media has a unique model. More than half a billion people globally, including Gen Z and Millennials, see us as the go-to destination for digital content."
As a result, the biggest brands and the highest profile celebrities want to partner with LBG to access the growing buying power and influence of this hard-to-reach demographic, the CEO added.
"The strength of our model, our progress in the US, and our fantastic team, explain why our results are ahead of calendar year expectations and give us confidence of further progress in 2025," he told investors.