Sparks

LBG Media is making good headway in difficult markets with its strong proposition to advertisers wanting to reach a Millennial and Gen Z audience. It is increasing the number of large brands generating over $1m of revenue in its Direct business, now 17 compared to 7 in the year to March 2024, and, importantly, it is building the degree of repeat business, which now accounts for 78% of Direct revenues.  Indirect revenues, generated on social platforms and the group’s websites, are growing faster, posting an 18% uplift. This reflects the investment made in the quality of web content, which has more than offset the impact of reduced revenues from Facebook.

Getting it right in the US is key to LBG Media’s growth ambitions, and the Betches acquisition has provided a good springboard, as well as broadening the addressable audience. The second half of the year will present tougher comparatives, and currency moves are unhelpful, but full-year revenue growth in double digits should be achievable. The medium-term outlook remains positive, backed by strong cash conversion and a cash-positive balance sheet.