LBG Media (LBG) H2 2025 earnings summary

Executive summary

• Achieved double-digit revenue and EBITDA growth for 2025, maintaining market leadership among young adults on digital platforms in both the U.K. and U.S. markets.

• Strategic focus on predictable, repeatable revenue streams, IP monetization, and leveraging AI for content and operational efficiency.

• U.S. market seen as a major accelerator, with significant investments in talent, infrastructure, and proprietary products to drive further growth.

• Brand equity and scale highlighted as key differentiators, with over 509 million global audience and strong engagement metrics.

• Strong cash generation and a robust balance sheet support long-term investment and selective acquisitions.

Financial highlights

• Revenue up 10% year-over-year to £92.2 million; Adjusted EBITDA up 3% to £25.2 million.

• Direct revenues grew 17% overall, with U.S. direct revenue up 32% and U.K. direct revenue up 11%.

• Indirect revenues grew 3%, with web revenue up 17% to £21.4 million; social revenue declined 9% due to Facebook policy changes.

• Content costs increased 22% year-over-year, reflecting larger campaigns and expanded talent participation.

• Cash and cash equivalents at period end were £30.8 million; EBITDA to cash conversion at 93%.

Outlook and guidance

• Direct business expected to reach up to 75% of revenue mix in 3–4 years, with low to mid double-digit direct revenue growth anticipated.

• Margins before central costs expected in the mid-20% range; absolute EBITDA margins to remain in line with current guidance.

• Continued investment in AI, technology, marketing, and content, with strategic costs partly offset by headcount reductions in social and web.

• Robust cash performance anticipated, with ~90% cash conversion.