LBG Media (LBG) H1 2025 earnings summary

Executive summary

• Achieved double-digit revenue and profit growth in H1 2025, with revenue up 13% year-over-year to £43.9 million and adjusted EBITDA up 18% to £12.2 million.

• Strong momentum in the U.S. market, with significant client wins, a growing pipeline, and continued revenue diversification.

• Global audience expanded to 520 million, including two-thirds of U.K. Gen Z and 90 million Gen Z worldwide.

• Continued investment in leadership, technology, AI, and purpose-driven initiatives, with key hires and board changes.

Financial highlights

• Total revenue rose 13% year-over-year to £43.9 million, with direct revenue up 8% to £19.3 million and indirect revenue up 18% to £24–24.5 million.

• Adjusted EBITDA increased 18% to £12.2 million, with margin improving to 27.8%.

• Profit before tax surged 165% to £8.6 million; operating profit more than doubled to £8.4 million.

• Net cash position at period end was £32.9 million, with 110% EBITDA cash conversion.

• Free cash flow per share grew 27% to 4.7p.

Outlook and guidance

• Confident in delivering at least 10% revenue growth at constant currency for FY25, despite macroeconomic and currency headwinds.

• U.S. market momentum and diversified revenue streams expected to support future growth.

• U.S. Dollar weakness expected to impact FY25 revenue by £2 million and EBITDA by £1 million, with hedging in place.

• Tax rate expected to remain around 27% in the medium term.

• Anticipates positive impact from upcoming major events like the World Cup.