Ladbible owner LBG Media PLC (AIM:LBG, FRA:S83) shares fell 22.9% to 27p after the social media publisher cut its full-year forecasts, warning that weakness in advertising revenue linked to Facebook and search engine changes has persisted for longer than expected.
The online and social media publisher reported a 19% rise in revenue to £52.4 million in the six months to 31 March, driven by a 95% jump in higher-margin direct advertising sales to £37.6 million.
Growth was particularly strong in the US, where direct revenue rose 154% to £16.1 million, helping direct sales account for 72% of group revenue, up from 44% a year earlier.
However, indirect revenue, which includes social media revenue-sharing agreements and owned websites, fell 41% to £14.5 million. The company blamed changes to Meta's Facebook algorithm and lower search traffic as users increasingly rely on AI-generated search summaries.
Adjusted EBITDA fell 34% to £8 million, while profit before tax dropped 79% to £1.8 million.
LBG had previously upgraded revenue guidance in April, but now expects full-year revenue of £100-107 million and adjusted EBITDA of £15-20 million.
Solly Solomou, chief executive, said: "While our strategy to drive repeatable revenue growth is making good progress - with our direct revenue streams almost doubling in 1H26 - our indirect business was hit harder than expected."
