Lbg Media Plc · LSE:LBG
Lbg Media — H1 2022 Earnings Presentation
28 slides from Lbg Media's earnings presentation, Sep 21, 2022
Slide 1: Half Year Results 2022
HALF YEAR RESULTS 2022 21 SEPTEMBER 2022 1 LBG Media Half Year Results 2022
Slide 2: The Team
THE TEAM Solly Solomou Arian Kalantari Tim Croston Founder & CEO Co-Founder & COO FCCA CFO 2 LBG Media Half Year Results 2022
Slide 3: H1 2022 Summary
H1 2022 SUMMARY £24.8m £1.6m £28.6m Revenue Adj. EBITDA Net cash +8% yoy (78%) yoy H1 21: £12.6m 3x 35.8bn 315m Increase in Content views Global audience international revenue +38% yoy +62m yoy 3 LBG Media Half Year Results 2022
Slide 4: Advertising Market Trends
ADVERTISING MARKET TRENDS Continued growth forecast for global advertising market1 US has world’s largest advertising spend2 Mobile social media is the UK’s fastest growing advertising market3 UK adults spend on average 4 hours a day viewing online content3 Source: 1. Dentsu Ad spend report July 202
Slide 5: Progress Against Our Three Growth Pillars
PROGRESS AGAINST OUR THREE GROWTH PILLARS 01 Geographies 02 Acquisitions 03 Capabilities International follower growth of 37% Small bolt on acquisition of Go TikTok now over 34m followers, up in the period1 Animals, rebranded to Furry Tails 26% in the period 3x increase in international revenue Focu
Slide 6: US Operations: Expanding Our Presence
US OPERATIONS EXPANDING OUR PRESENCE US is the third largest social media market Already reach 1/3 of US adults across our existing in the world channels1 Solid foundation from which to build a presence in a >300m large market SOCIAL MEDIA USERS2 Opportunity to begin to monetise our US operations In
Slide 7: Arian Kalantari, COO
Arian Kalantari COO 7 LBG Media Half Year Results 2022
Slide 8: Continued Growth of Audience
CONTINUED GROWTH OF AUDIENCE 25% 38% GROWTH IN +26%TIKTOK GROWTH IN FOLLOWERS VIEWS FOLLOWERS SIGNIFICANT INCREASE IN WEB TRAFFIC IN THE US CONTINUED GROWTH IN AUSTRALIA & IRELAND 8 LBG Media Half Year Results 2022
Slide 9: Brands
BRANDS 9 LBG Media Half Year Results 2022
Slide 10: We Are at the Heart of Youth Culture
WE ARE AT THE HEART OF YOUTH CULTURE CULTURAL MOMENTS BREAKING NEWS SHOW FORMATS SOCIAL RESPONSIBILITY ABORTION RIGHTS SUPPORTING LGBTQIA+ 10 LBG Media Half Year Results 2022
Slide 11: Unrivalled Engagement vs Competitors
UNRIVALLED ENGAGEMENT VS COMPETITORS FACEBOOK FOLLOWERS1 INTERACTIONS1 338m 410m CAPTURING A HARD TO REACH AUDIENCE 323m 237m 160m 169m 60% 18-34 year 76m 59m 66m 58m olds in UK 60m 33m 55m 29m 36m 23m GENDER 60% 15m 13m SPLIT 15m 13m 40% 4m 5m 1m 1m 457M GLOBAL REACH 1 Source: CrowdTangle. Note dat
Slide 12: Data Feedback Analysis & Learning
DATA FEEDBACK ANALYSIS & LEARNING ANALYSING CONTINUOUSLY DRIVING INTERACTIONS LEARNING IMPROVING FURTHER WITH AUDIENCE FROM DATA CONTENT ENGAGEMENT 237M INTERACTIONS ANALYSED IN HY2022 12 LBG Media Half Year Results 2022
Slide 13: Monetisation
MONETISATION CUSTOMERS ROUTES TO MARKET REVENUE DIRECT BRAND OWNERS Bespoke full funnel marketing £13.6m £10.6m Repeat business with INDIRECT DIRECT a roster of blue chip multinational clients Awareness Consideration intrigue Conversion HY22 inspire intent REVENUE 100+ strong creative team INDIRECT
Slide 14: Social Consultancy
SOCIAL CONSULTANCY Title: Social agency PIONEERING PARTNERSHIP WITH VODAFONE TO TAKE OVER VOXI SOCIAL CHANNELS CREATING BRANDED CONTENT FOR THEIR TARGET UNDER 25 AUDIENCE PUBLISHING ACROSS TIKTOK, INSTAGRAM AND TWITTER 14 LBG Media Half Year Results 2022
Slide 15: Launch of LADnation
LAUNCH OF LADNATION AN ENGAGED COMMUNITY OF OVER 50,000 PEOPLE OFFERING PARTNER BRANDS INSIGHTS, CREATIVE TESTING, BRAND TRACKING AND EFFECTIVENESS MEASURING 15 LBG Media Half Year Results 2022
Slide 16: Tim Croston, CFO
Tim Croston CFO 16 LBG Media Half Year Results 2022
Slide 17: Continued Revenue Growth and Diversification
CONTINUED REVENUE GROWTH AND DIVERSIFICATION TOTAL REVENUE DIVERSIFIED REVENUE STREAMS £m 30 £m 30 Direct 25 0.6 Indirect 0.4 25 20 Other 20 13.1 13.6 15 15 0.5 23.0 24.8 10 0.3 6.2 10 12.5 5.3 9.9 5 9.5 10.6 5 5.6 4.3 0 0 H1 2019 H1 2020 H1 2021 H1 2022 H1 2019 H1 2020 H1 2021 H1 2022 8% 30% Growth
Slide 18: Costs
COSTS MANAGEMENT OF COSTS1 INCREASE IN COSTS TO SUPPORT GROWTH 30 £m Cost of sales up 67% (c.15% of total costs) 25 Content acquisition to support growth in views 20 15 Payroll up 36% (c.60% of total costs) 23.2 10 Around 2/3 due to hires in H2 2021 annualising in 15.1 the period 10.8 10.7 5 0 Overh
Slide 19: Profitability & Cash Generation
PROFITABILITY & CASH GENERATION ADJUSTED EBITDA CASH POSITION 10 Adjusted EBITDA £m 8 6 4 7.3 £28.6m CASH 2 1.6 -0.7 1.6 AT 30 JUNE 0 (H1 2021: £12.6m) H1 2019 H1 2020 H1 2021 H1 2022 -2 Strong cash position supports our £1.6m 7% M&A ambitions ADJUSTED EBITDA EBITDA MARGIN H1 2021: £7.3m H1 2021: 32
Slide 20: Guidance
GUIDANCE • Improving momentum in indirect revenues, expected to continue throughout seasonally stronger second half • Direct bookings showing good momentum, although advertisers making decisions with shorter lead times given uncertainty around consumer demand • Results for full year expected to be b
Slide 21: Solly Solomou, CEO
Solly Solomou CEO 21 LBG Media Half Year Results 2022
Slide 22: Summary
SUMMARY Delivered 8% revenue growth Significant global audience growth of 25% Progressing our US plans, set to commence operations in 2023 With a focus on the longer term, continue to invest where we see clear growth opportunities Well positioned for the future as we execute our growth strategy 22 L
Slide 23: Q&A
Q&A 23 LBG Media Half Year Results 2022
Slide 24: Appendices
APPENDICES 24 LBG Media Half Year Results 2022
Slide 25: Profit & Loss
PROFIT & LOSS Historical Financial Performance H1 Jun 2021 Y/e Dec 2021 H1 Jun 2022 £’000 £’000 £’000 Revenue 23,006 54,502 24,763 Growth rate (%) 81% 8% Net operating expenses (17,352) (46,255) (26,577) Operating Profit/(loss) 5,654 8,247 (1,814) Margin (%) 25% 15.1% (7)% Net finance costs (132) (2
Slide 26: Balance Sheet
BALANCE SHEET HistoricalHistorical Financial Performance (audited) Financial Performance Jun 2021 £’000 Y/e Dec 2021 £’000 Jun 2022 £’000 H1 Interims (unaudited) Goodwill & other intangibles 14,652 14,558 15,374 Property, plant & equipment 4,188 3,705 4,038 Investment in JV 315 359 314 Other 1,643 4
Slide 27: Cashflow
CASHFLOW Historical Financial Performance H1 Interims (unaudited) Period ended 30 Period ended 30 Year ended 31 June 2022 June 2021 December 2021 £’000 £’000 £’000 Cash flows from operating activities Cash (used)/generated from operations (2,900) 7,435 13,004 Tax (paid)/received (803) 290 (678) Net
Slide 28: Thank you
Thank you Contact us: Email: investors@ladbiblegroup.com 28 LBG Media Half Year Results 2022