20th Dec 2023 13:58
(Alliance News) - LBG Media PLC on Wednesday said it made strong progress this year, but that it is working to improve its efficiency in Australia following a disappointing result there.
Shares in LBG were down 7.0% at 81.50 pence in London on Wednesday afternoon.
The Manchester, England-based digital media publisher said it further deepened its market leadership position throughout 2023, and expects to report around GBP67 million in revenue compared with GBP62.8 million in 2022.
LBG said it also expects adjusted earnings before interest, tax, depreciation and amortisation to increase by at least 8% to GBP17 million from GBP15.7 million. This would comprise around GBP3 million in the first six months, followed by a surge to at least GBP14 million in the current half year.
The Ladbible and Sportbible owner also noted that it "significantly accelerated our progress into the US" through its USD24 million acquisition of Betches Media in October. It said Betches's performance and integration are both progressing as planned, with a "naturally" much bigger contribution.
Moreover, LBG said its UK and Ireland businesses have continued to perform well, as evidenced by its high conversion rates and "significant" client roster.
However, LBG also said its Australian business arm suffered a year-on-year profit drop of approximately GBP3 million. Consequently, it has "implemented a number of positive changes" with effect from January, which LBG hopes will make operations more efficient.
LBG said its improvements both reversed this year's profit reduction and provide it with "a more efficient model from which to grow, and a potential partnership template to consider for other regions in the future."
Looking ahead, LBG "remains confident in the growth outlook for 2024". As well as highlighting the Betches acquisition and its new operating model in Australia, the firm anticipates significant opportunities "represented by key advertising moments such as Euro 2024 and the Olympics."
By Emma Curzon, Alliance News reporter
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