LBG Media PLC (AIM:LBG) said it remains on course to deliver double-digit revenue growth this year despite currency headwinds and uncertainty over advertising markets, as it reported a sharp rise in profit for the first half.
The owner of the LadBible and Betches digital media brands said pre-tax profit more than doubled to £8.6 million in the six months to the end of March, from £3.3 million a year earlier.
Group revenue rose 13% to £43.9 million, driven by continued demand from advertisers targeting young audiences.
The Manchester-based company, which distributes content across social media platforms, said revenues from content created directly for brands rose 8%, while indirect revenues from advertising placed alongside its content grew 18%.
Cash and cash equivalents climbed to £32.9 million, up from £19.8 million in the prior year, helped by strong cash conversion of 110%.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 18% to £12.2 million, with a margin of 27.8%.
In the United States, LBG said it had secured significant new business and built a healthy sales pipeline. It now has 17 clients generating more than $1 million in annual revenue, up from seven a year earlier.
The company warned that recent weakness in the US dollar would cut full-year revenue by around £2 million and reduce EBITDA by about £1 million, although it has hedged much of its exposure.
LBG said its large global audience, now totalling 520 million, and diversified revenue streams position it well for the second half, even as advertising markets remain volatile.
CEO Solly Solomou said: "Our confidence in progress in the second half of the year is underpinned by our audience, the power of LBG Media's brands, our attractiveness to brands and celebrities, and the relevance of our content.
"Whilst mindful of the macroeconomic environment, we remain confident of delivering 10% revenue growth at constant currency."