Lbg Media Plc · LSE:LBG
Lbg Media — H1 2024 Earnings Presentation
30 slides from Lbg Media's earnings presentation, Sep 18, 2024
Slide 1: Half Year Results 2024
HALF YEAR RESULTS 2024 18TH SEPTEMBER 2024
Slide 2: The Team
THE TEAM SOLLY RICHARD SOLOMOU JARVIS FOUNDER & CEO CFO 2 LBG MEDIA HY24 RESULTS
Slide 3: Key Highlights
KEY HIGHLIGHTS £42.3M DELIVERED STRONG FINANCIAL PERFORMANCE IN H1 REVENUE +55% YOY, +29% ORGANIC CONTINUED INTEGRATION OF U.S. COMMERCIAL TEAMS WITH EARLY £10.2M CLIENT SUCCESSES ADJ. EBITDA +240% YOY, +190% ORGANIC CONTINUED PROGRESS ON REVENUE DIVERSIFICATION £26.6M STRENGTHENED OPERATING MODEL F
Slide 4: H1 Highlights
H1 HIGHLIGHTS DIRECT INDIRECT U.S. EXPANSION § WINNING BIGGER § GLOBAL AUDIENCE OF 494M, § EXISTING U.S. OPERATIONS BRIEFS & BUILDING DEEPER UP 20% YOY CONSOLIDATED INTO BETCHES HQ RELATIONSHIPS § U.S. AUDIENCE OF 141M, UP § INTEGRATION OF SALES TEAMS TO § EVER INCREASING ROSTER OF 37% YOY CREATE ‘I
Slide 5: Purpose Driven Work
PURPOSE DRIVEN WORK MENTAL HEALTH THE PROBLEM OUR ACTION THE RESULT A NEED TO RAISE LAUNCHED ‘END SPIKING, ON 17 JULY 2024, THE UK AWARENESS OF THE DRINK NOW’ CAMPAIGN, CREATED GOVERNMENT ENVIRONMENT SPIKING PROBLEM IN THE ORIGINAL SERIES & ANNOUNCED THAT DRINK UK AND PUT PRESSURE ON PROMOTED CONTEN
Slide 6: Richard Jarvis, CFO
RICHARD JARVIS CFO 6 LBG MEDIA HY24 RESULTS
Slide 7: Total Revenue
TOTAL REVENUE HY24 ORGANIC GROWTH £42.3M § STRONG PERFORMANCE ACROSS ALL AREAS § ORGANIC GROWTH OF 29%1, FASTER THAN THE OVERALL MARKET AS OUR PROPOSITION CONTINUES HY23 £27.2M TO BE INCREASINGLY COMPELLING FOR ADVERTISERS § ANZ OPERATING MODEL DELIVERING BENEFITS AS +55% +29% PLANNED YOY GROWTH ORG
Slide 8: Direct Revenue
DIRECT REVENUE § DIVERSIFYING REVENUE SPLIT, WITH DIRECT HY24 £22.0M ACCOUNTING FOR MORE THAN 50% OF TOTAL GROUP REVENUE FOR FIRST TIME SINCE INCEPTION HY23 £11.4M § POSITIVE IMPACT FROM SUCCESSFUL CAMPAIGN ACTIVATIONS ACROSS UEFA EURO 2024 +92% +33% § MULTIPLE JOINT WINS IN U.S. WITH ‘ONE STOP SHOP
Slide 9: Indirect Revenue
INDIRECT REVENUE § ACCELERATION OF WEB WHICH NOW ACCOUNTS FOR 45% OF INDIRECT (FY23: 30%) HY24 £19.7M § WEB YIELDS UP APPROXIMATELY 90% YOY WITH FOCUS ON QUALITY OVER QUANTITY HY23 £15.3M § SIGNIFICANT GROWTH IN GLOBAL AUDIENCE TO 494M, UP 20% YOY +28% +27% § INCREASING DIVERSIFICATION WITH FACEBOOK
Slide 10: Diversified Revenue Streams
DIVERSIFIED REVENUE STREAMS WEB 11% DIVERSE REVENUES BETTER REFLECT SOCIAL H1 2021 DIRECT 46% EFFECTIVENESS OF THE BUSINESS MODEL 41% REVENUE BREAKDOWN GROWTH IN DIRECT DEMONSTRATES CORE STRENGTH OF THE BUSINESS WEB SOCIAL 21% 26% SIGNIFICANTLY INCREASED DIVERSITY OF H1 2024 DIRECT 52% REVENUE ACROS
Slide 11: Costs
COSTS § TOTAL COSTS UP 32% REFLECTING ADDITION OF BETCHES PLUS INVESTMENT FOR GROWTH1 HY24 £32.0M § REMOVED COSTS OUT OF ANZ RESULTING IN PROFITABLE OPERATING MODEL IN FY24 HY23 £24.2M PAYROLL 22% +29% YoY 23% CONTENT & PRODUCTION 9% 55% +45% YoY ORGANIC COST OVERHEADS INCREASE2 +29% YoY REVENUE & E
Slide 12: Adjusted EBITDA
ADJUSTED EBITDA § ADJUSTED EBITDA MORE THAN TRIPLED WITH BENEFIT FROM: HY24 £10.2M q STRONG REVENUE PERFORMANCE INCLUDING IMPACT OF UEFA EURO 2024 ACTIVATIONS HY23 £3.0M q CONTRIBUTION FROM BETCHES q OPERATIONAL LEVERAGE & TIGHT COST CONTROL +240% 24% q REVERSED DECLINE IN PROFITABILITY IN ANZ YOY G
Slide 13: Cash
CASH § VERY STRONG CASH CONVERSION OF 152%, UP 152% FROM 76% AT FY23 ADJ. CASH CONVERSION1 § COMMITMENT TO OPERATIONAL EXCELLENCE & EFFICIENCY £15.5M § REMAIN HIGHLY CASH GENERATIVE £26.6M £15.8M § CASH POSITION AT HALF YEAR £26.6M (FY23: £15.8M) FY23 OPERATING PPE & TAX FINANCING HY24 § FIRST BETCH
Slide 14: Key Performance Indicators
KEY PERFORMANCE INDICATORS BRIEF REPEAT CLIENT UPCOMING QUARTER CONVERSION REVENUE1 PRE-BOOK2 DIRECT 33% 75% +31% (UK & IRE) HY23: 29% HY23: 82% GLOBAL DAILY WEB WEB YIELD PER 1K AUDIENCE3 SESSIONS4 SESSIONS 494M 5.2M £9.28 INDIRECT HY23: 410M HY23: 5.1M HY23: £4.88 UPCOMING QUARTER U.S. PRE-BOOK2 A
Slide 15: Change of Year End
CHANGE OF YEAR END § OUR FINANCIAL YEAR END HAS CHANGED FROM 31 DECEMBER TO 30 SEPTEMBER § AS A RESULT, OUR ANNUAL REPORTING CALENDAR WILL BE AS FOLLOWS: q HALF YEAR RESULTS FOR THE SIX-MONTHS TO 31 MARCH, PUBLISHED NO LATER THAN 30 JUNE q FULL YEAR RESULTS FOR THE TWELVE-MONTHS TO 30 SEPTEMBER, PUB
Slide 16: Solly Solomou, Founder & CEO
SOLLY SOLOMOU FOUNDER & CEO 16 LBG MEDIA HY24 RESULTS
Slide 17: Positive Momentum in Our Market
POSITIVE MOMENTUM IN OUR MARKET GLOBAL ADVERTISING MARKET TO REACH OVER $1TN IN 2024 AND PROJECTED TO GROW BY 7%+ OVER 70% OF MARKETING BUDGETS ARE DIGITAL, COMPARED TO AROUND 50% FIVE YEARS AGO SOCIAL MEDIA IS LARGEST GLOBAL ADVERTISING CHANNEL FOR THE FIRST TIME THIS YEAR BY 2030 GEN Z IS PROJECTE
Slide 18: Why We Win
WHY WE WIN SCALE & RELEVANCE THIS CONTRIBUTES TO THAT CAN BE WE ARE THE WORLD’S WE ATTRACT THE HIGHLY CONSUMABLE WHICH RESULTS IN REINVESTED INTO LARGEST YOUTH PUBLISHER BIGGEST CELEBRITIES & RELEVANT CONTENT, GROWING CONTENT & FURTHER AND WE LEVERAGE OUR & BRANDS WHO ARE & DRIVES ADVERTISING GROWTH
Slide 19: Progressing on Our Journey to £200M
PROGRESSING ON OUR JOURNEY TO £200M TAKING MARKET SHARE FROM TRADITIONAL DIRECT PLAYERS & BUILDING DEEPER RELATIONSHIPS WITH BLUE-CHIP BRANDS GROWING AUDIENCE & REACH ACROSS OPPORTUNITY TO INDIRECT PLATFORMS & WEB, BUILDING DEEPER ACCELERATE VIA RELATIONSHIPS WITH KEY PARTNERS STRATEGIC GROWING OPER
Slide 20: Summary & Outlook
SUMMARY & OUTLOOK STRONG FINANCIAL PERFORMANCE, AND POSITIVE MOMENTUM ACROSS KPI METRICS WINNING BIGGER & DEEPER RELATIONSHIPS WITH CLIENTS U.S. INTEGRATION CONTINUES TO PROGRESS WELL WITH SIGNIFICANT WINS STRONG MOMENTUM IN THE PERIOD TO DATE AND THE BOARD ARE CONFIDENT IN DELIVERING ON MARKET EXPE
Slide 21: Q&A
Q&A 21 LBG MEDIA HY24 RESULTS
Slide 22: Appendix
APPENDIX 22 LBG MEDIA HY24 RESULTS
Slide 23: YoY Growth Percentages
YOY GROWTH PERCENTAGES STATUTORY ORGANIC TOTAL REVENUE 55% 29% DIRECT 92% 33% INDIRECT 28% 27% ADJUSTED EBITDA 240% 190% 23 LBG MEDIA HY24 RESULTS
Slide 24: Our Journey
OUR JOURNEY 2015 2024 2021 12BN 2006 2012 VIEWS 494M LBG IS AUDIENCE FOUNDED – FIRST CONTENT & 34M LISTING ON LSE AS LBG GLOBAL WEBSITE FOLLOWERS MEDIA PLC LAUNCH OF LAUNCH THE IPHONE & FACEBOOK CLEAR LINE OF SIGHT £200M REVENUE FINANCIAL DIGITAL SPEND CRISIS – NEWSPAPER OVERTAKES AD SPEND NEWSPAPER
Slide 25: Brands & Partners
BRANDS & PARTNERS DIRECT BRANDS INDIRECT PARTNERS 25 LBG MEDIA HY24 RESULTS
Slide 26: P&L
P&L £’000 HY 2024 HY 2023 REVENUE 42,275 27,247 NET OPERATING EXPENSES (35,002) (28,499) OPERATING PROFIT / (LOSS) 7,273 (1,252) ANALYSED AS ADJUSTED EBITDA 10,243 3,013 DEPRECIATION (1,212) (911) AMORTISATION (1,193) (507) SHARE BASED PAYMENT CHARGE (565) (2,178) ADJUSTING ITEMS - (669) OPERATING P
Slide 27: Balance Sheet
BALANCE SHEET £’000 HY 2024 HY 2023 GOODWILL & OTHER INTANGIBLES 39,037 15,707 PROPERTY, PLANT & EQUIPMENT 5,620 3,203 INVESTMENT IN JV 1,101 443 DEFERRED TAX ASSET 37 651 OTHER 220 124 NON CURRENT ASSETS 46,015 20,128 TRADE AND CURRENT ASSETS 27,893 19,500 INVENTORY 25 - CASH & CASH EQUIVALENTS 26,
Slide 28: Cashflow
CASHFLOW £’000 HY 2024 HY 2023 CASH FLOWS FROM OPERATING ACTIVITIES CASH (USED)/GENERATED FROM OPERATIONS 15,513 5,486 TAX (PAID)/RECEIVED (2,666) (192) NET CASH (USED)/GENERATED FROM OPERATING ACTIVITIES 12,847 5,294 CASH FLOWS FROM INVESTING ACTIVITIES PURCHASE OF INTANGIBLE ASSETS (356) (798) PUR
Slide 29: Thank You
THANK YOU CONTACT US: INVESTORS@LADBIBLEGROUP.COM 29 LBG MEDIA HY24 RESULTS
Slide 30: Disclaimer
DISCLAIMER CERTAIN STATEMENTS INCLUDED OR INCORPORATED BY REFERENCE WITHIN THIS PRESENTATION MAY CONSTITUTE “FORWARD-LOOKING STATEMENTS” IN RESPECT OF THE GROUP’S OPERATIONS, PERFORMANCE, PROSPECTS AND/OR FINANCIAL CONDITION. FORWARD-LOOKING STATEMENTS ARE SOMETIMES, BUT NOT ALWAYS, IDENTIFIED BY TH