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Media

LADBible Media Group stock soars on earnings update

Shares in LADBible owner jumped by more than 7% in early trading on back of positive earnings outlook

LADBible owner LBG Media PLC (AIM:LBG) saw its shares surge in early trading following the company's first earnings update since floating in London just before Christmas.

The online publisher said it expects full-year 2021 earnings to beat expectations as viewership figures for the group’s social media platforms almost doubled.

LBG’s share price jumped by more than 7% in the first two hours of trading following the announcement.

The group, which says it reaches nearly two-thirds of 18 to 34 year-olds in the UK, with 262 social media followers globally, floated on AIM in December with a £30mln fundraise and a valuation of £360mln.

Full-year earnings, to be published in April, are expected to show underlying earnings (adjusted EBITDA) is likely to reach £16.2mln, slightly ahead of expectations.

The group said it anticipates top-line growth of £54mln, an 80% rise on 2020, as direct revenues through increased content marketing and direct display sales rose across the UK, Australia and Ireland.

A 97% increase in views of group-generated content to 62.9bn helped monetisation efforts on social media, boosting indirect revenue.

The company added a cushion to its cash reserves with the IPO capital raise, with net cash of £34.3mln.

LBG chief executive Solly Solomou said: “The business operates in structurally growing markets, and it is a testament to our well-invested operations that we have the platform, the audience and the knowhow to deliver relevant content to a coveted, hard-to-reach youth audience across a broad portfolio of distinct brands.”

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