LBG Media (LBG) Trading update summary

Financial performance and trading update

• Revenue reached £92.2m for FY25, a 10% increase at constant currency compared to FY24, with adjusted EBITDA up 2% to £25.0m.

• Direct revenue grew 13%, driven by strong demand in both the US and UK, despite a tough prior-year comparator in the UK.

• Indirect revenue increased 2%, with social platform gains offsetting a decline in website revenues; management actions are underway to support web recovery.

• Net cash and cash equivalents rose to £30.1m, with a 90% cash conversion rate, including a $5.5m earnout payment.

Strategic outlook and growth drivers

• Strong growth momentum in the US, the world's largest advertising market, supported by global blue-chip brand demand.

• Diversified business model and healthy pipeline in both the US and UK underpin confidence for further growth in FY26.

• Audience engagement remains robust, with reach to 70% of the UK's Gen Z population.

• The group is the UK's fifth largest social and digital business, leveraging brands like Betches, LADbible, and SPORTbible.

Revenue streams and business model

• Direct revenue comes from bespoke content and campaigns for brands and agencies targeting young adults.

• Indirect revenue is generated through advertising placed by third parties next to content on social platforms and owned websites.

• The business model is designed to reach young adults across major social media platforms and owned digital properties.