LBG Media PLC, a digital media publisher, reported strong financial results for the fiscal year 2025 (FY25), with revenue and profit in line with market expectations. The company achieved double-digit revenue growth of 10% to £92.2 million, driven by a 13% increase in Direct revenues and a 1% increase in Indirect revenues. Adjusted EBITDA grew by 3% to £25.2 million, with a margin of 27.4%. Profit before tax decreased slightly by 3% to £14.0 million.
**Key Highlights**
**Direct Revenues** Strong performance in Direct revenues, which include content for brands and media agencies, with a 13% overall increase. This was driven by significant growth in the U.S. (+29%) and the UK (+11%).
**Indirect Revenues** Stabilization of Indirect revenues, which include revenue-sharing agreements with social media platforms, with a 1% increase. Growth on social platforms offset lower revenues from websites.
**AI and Technology Investment** Continued investment in generative AI and emerging technology to enhance productivity and client engagement.
**Leadership and Culture** Strengthening of the leadership team with senior hires in the UK and U.S. to support future growth.
**Client Retention** High repeat client revenue of 82% in the Direct UK market, indicating strong client relationships.
**Audience Growth** Global audience increased to 509 million, up from 503 million in the previous year.
**Cash Performance** Strong cash position with £30.8 million in cash and cash equivalents, and no debt.
**Revenue Reporting** Introduction of additional revenue information, breaking down revenues into four core markets: Direct UK, Direct U.S., Indirect Web, and Indirect Social.
**Strategic Focus**
**Accelerating Investment in Growth** LBG Media plans to increase investment in the U.S. and UK Direct markets, particularly in senior leadership and sales teams, to capitalize on immediate opportunities.
**Revenue Mix Evolution** Expectation that higher-growth Direct revenue streams will constitute an increasing proportion of Group revenue, potentially reaching 70%. Direct revenue growth is anticipated to be in the low-to-mid teens range, with margins before central costs in the mid-20% range.
**Predictable Performance** The shift towards Direct revenues is expected to make performance more predictable, with greater visibility on earnings due to improved pipeline and visibility.
**EBITDA Margins** Absolute Group EBITDA margins are expected to remain in line with consensus, reflecting the higher growth in Direct revenue streams and lower growth in Indirect revenue streams.
**Outlook**
**FY26 Outlook** The company is optimistic about FY26, with increasing client engagement levels and a strong pipeline in the UK and U.S. Direct markets. The Board remains confident in the growth outlook, supported by LBG Medias appeal to young adults and its ability to attract global blue-chip brands.
**Acquisitions** The net cash position and cash generation support selective acquisitions where there is a compelling strategic fit.
**CEO Commentary**
CEO Solly Solomou emphasized the companys progress in building a scalable, compounding model that drives predictable revenue growth. He highlighted the success in the U.S. market, the largest advertising market globally, and the companys ability to attract major brands. Solomou also noted the acceleration of investment to capitalize on the healthy pipeline and opportunities in the Direct revenue streams.
**Financial Summary**
**Revenue:** £92.2 millionup 10% from £86.2 million in FY24.
**Adjusted EBITDA:** £25.2 millionup 3% from £24.5 million in FY24.
**Profit Before Tax:** £14.0 milliondown 3% from £14.5 million in FY24.
**Cash and Cash Equivalents** £30.8 million, up from £27.2 million in FY24.
**Conclusion**
LBG Media PLC demonstrated robust financial performance in FY25, with strong revenue growth, continued profit growth, and a solid cash position. The companys strategic focus on accelerating investment in growth markets, particularly the U.S. and UK Direct markets, positions it well for future expansion. The shift towards a more predictable revenue mix and the emphasis on AI and technology investment are expected to drive sustainable growth and enhance client engagement. The positive outlook for FY26, supported by a strong pipeline and increasing client engagement, reinforces the companys growth trajectory.