LBG Media (LBG) H1 2024 earnings summary

Executive summary

• Achieved 55% year-on-year revenue growth to £42.3 million in H1 2024, with 29% organic growth and significant operational leverage.

• Adjusted EBITDA rose 240% to £10.2 million, with margin expanding to 24% from 11% in HY23.

• Cash position increased by £11 million to £26.6 million, driven by improved cash conversion and business performance.

• Strategic focus on direct, indirect, and U.S. business segments, with significant progress and integration of U.S. commercial teams.

• Achieved record global audience of 494 million, with 141 million in the U.S., and strong engagement among young adults.

Financial highlights

• Revenue reached £42.3 million, up 55% year-on-year, with 29% organic growth.

• Adjusted EBITDA was £10.2 million, up 240% year-on-year, with margin at 24%.

• Direct revenue up 92% to £22 million (33% organic), now over 50% of group revenue.

• Indirect revenue grew 28% to £19.7 million, with web now 45% of indirect revenues and web yield per session up 90% year-on-year.

• Cash conversion rate rose to 152% in H1 from 79% last year.

Outlook and guidance

• Board confident in delivering market expectations for FY24: £86.0 million revenue and £23.5 million adjusted EBITDA.

• Pre-booked direct revenue for Q4 pacing 31% ahead of last year; U.S. pre-booking up 65%.

• Clear line of sight to £200 million revenue target, with strong momentum and positive KPI trends.

• Changed financial year-end to September 30 for better planning and reporting.