Slide 1: Full Year Results 2023
FULL YEAR RESULTS 2023 18TH APRIL 2024
Slide 2: The Team
THE TEAM SOLLY RICHARD SOLOMOU JARVIS FOUNDER & CEO CFO 2 LBG MEDIA FY23 RESULTS
Slide 3: Key Highlights
KEY HIGHLIGHTS WE ARE BUILDING AN ENTERTAINMENT POWERHOUSE £67.5M £17.4M FOR YOUNG ADULTS REVENUE ADJ. EBITDA +7.5% YOY +10.8% YOY POSITIVE REVENUE MOMENTUM 75%+ 141M STEP-CHANGE ACQUISITON OF BETCHES REPEAT US CLIENT REVENUE1 AUDIENCE2 MORE PROFITABLE ANZ OPERATING MODEL 128BN 452M VIDEO GLOBAL VIE
Slide 4: LBG Media: Who We Are
LBG MEDIA WHO WE ARE WE ARE A GLOBAL DIGITAL WHO ENTERTAINMENT BUSINESS WITH A FOCUS ON YOUNG WHERE ADULTS HOW CLEAR OUR MISSION IS TO GIVE THE YOUNG ADULT GENERATION A VOICE BY BUILDING LINE OF SIGHT WHY COMMUNITIES THAT LAUGH, THINK, £200M AND ACT REVENUE WE NOW HAVE THE TEAM, STRUCTURE & AMBITION
Slide 5: LBG Media: Our Market
LBG MEDIA OUR MARKET WE OPERATE IN THE LARGEST & WHO FASTEST GROWING U.S. UK OTHER OUR GEOGRAPHIES SECTOR OF THE ADVERTISING INDUSTRY WHERE DIRECT INDIRECT OUR REVENUE AD SPEND1 STREAMS HOW $889BN +5.8% YOY YOUNG WHY ADULTS OUR AUDIENCE $617BN DIGITAL AD SPEND1 +9.2% $6BN+ OUR ESTIMATED TARGET YOY A
Slide 6: LBG Media: How We Will Do It
LBG MEDIA HOW WE WILL DO IT WHO DIRECT INDIRECT WHERE § TAKING MARKET SHARE FROM § GROWING AUDIENCE & TRADITIONAL PLAYERS REACH ACROSS PLATFORMS HOW § BUILDING DEEPER RELATIONSHIPS § BUILDING DEEPER MUTUALLY WHY WITH BLUE-CHIP BRANDS BENEFICIAL RELATIONSHIPS WITH § EXPANDING CAPABILITIES KEY PARTNER
Slide 7: LBG Media: Why We Will Win
LBG MEDIA WHY WE WILL WIN WHO INNOVATION WHERE HOW BRAND EQUITY WHY DIVERSITY RELEVANCY 7 LBG MEDIA FY23 RESULTS
Slide 8: Operational Progress
OPERATIONAL PROGRESS 8 LBG MEDIA FY23 RESULTS
Slide 9: ANZ: Improved Operating Model
ANZ: IMPROVED OPERATING MODEL MULTI-YEAR PARTNERSHIP WITH CENTRALISATION OF SOCIAL MORE VAL MORGAN DIGITAL FOR AND WEB OPERATIONS EFFICIENT GEOGRAPHIES DELIVERY OF INTO OUR UK COST BASE FOR DIRECT CENTRE OF INDIRECT REVENUES REVENUES EXCELLENCE CAPABILITIES IMPROVED BUILDING A FOUNDATION FOR PARTNER
Slide 10: U.S. Expansion - Organic
U.S. EXPANSION - ORGANIC THE U.S. FORMS A CORE PART OF OUR GROWTH STRATEGY… U.S. AUDIENCE PRE- ESTABLISHED A SMALL FOCUSED ON 2023 REVENUES OF BETCHES OF MORE BASE OF ESTABLISHING £0.3M THAN 100M1 OPERATIONS RELATIONSHIPS WITH IN NEW YORK IN LATE- AGENCIES 2022 AND BRANDS JOINT WINS STRONG NUMBER OF
Slide 11: U.S. Expansion - Betches
U.S. EXPANSION - BETCHES HIGHLY COMPLEMENTARY STRONG EARNOUT TIED TO BUSINESS WITH CULTURAL DRIVING U.S. GEOGRAPHIES MAJORITY FEMALE FIT AND TEAM REVENUE AUDIENCE GROWTH M&A CAPABILITIES PERFORMANCE AND BETCHES MULTIPLE JOINT INTEGRATION GROWTH BLUE-CHIP PROGRESSING OF 17% IN ACCOUNT WELL 2023 WINS
Slide 12: Social Responsibility
SOCIAL RESPONSIBILITY WHAT IS IMPORTANT TO US MENTAL ENVIRONMENT PROTECTING GIVING A VOICE HEALTH WOMEN AND TO UNDER- GIRLS REPRESENTED COMMUNITIES 12 LBG MEDIA FY23 RESULTS
Slide 13: Richard Jarvis, CFO
RICHARD JARVIS CFO 13 LBG MEDIA FY23 RESULTS
Slide 14: Diversified Revenue
DIVERSIFIED REVENUE DIRECT 43% INDIRECT 55% RELATIONSHIP WITH ADVERTISERS OF GROUP REVENUE RELATIONSHIP WITH ADVERTISERS OF GROUP REVENUE CREATING & PRODUCING DIGITAL ADVERTISING VIA SOCIAL BESPOKE CONTENT MEDIA & WEB FOR BRANDS PROGRAMMATIC PARTNERS REAL-TIME ANALYTICS PROVIDE REVENUE SHARED MEASUR
Slide 15: Total Revenue
TOTAL REVENUE § ENCOURAGING GROWTH DESPITE CHALLENGING FY23 £67.5M MARKET IN ANZ § INCREASED ACTIVITY WITH NEW AND EXISTING CLIENTS FY22 £62.8M § 4% ORGANIC GROWTH, OR 8% EXCLUDING ANZ, REFLECTING STRONG CORE BUSINESS PERFORMANCE +7.5% YOY GROWTH VS FY22 § PROFORMA REVENUE OF £79.0M1 POSITIVE REVENU
Slide 16: Direct Revenue
DIRECT REVENUE § POSITIVE GROWTH AGAINST CHALLENGING BACKDROP, INCLUDING ANZ FY23 £29.3M § FY23 POSITIONS US STRONGLY FOR GREATER SUCCESS: § STRONG ENGAGEMENT WITH LEADING BRANDS FY22 £27.8M § DEEPER RELATIONSHIPS REFLECTED IN 75% REPEAT CLIENT REVENUE1 +5.5% § IMPROVING RATE OF BRIEF CONVERSION YOY
Slide 17: Indirect Revenue
INDIRECT REVENUE § 70 / 30 - SOCIAL / WEB SPLIT FY23 £37.1M § SOCIAL - INCREASED VIDEO VIEWS TO 128BN MITIGATING PRESSURE FROM DECLINING YIELDS1 FY22 £33.6M § WEB – HIGHER QUALITY SESSIONS & HIGHER YIELDS A RESULT OF INVESTMENT IN PEOPLE & TECHNOLOGY +10.4% § DIVERSIFICATION OF REVENUES WITH MULTIPL
Slide 18: Costs
COSTS § TOTAL COST INCREASE OF 5%, WITH ORGANIC COST FY23 £50.1M INCREASE OF c.1%1 § INVESTMENT IN PEOPLE & TECHNOLOGY FY22 £47.6M COMMENSURATE WITH GROWTH ASPIRATIONS § REMOVED COSTS OUT OF ANZ AT THE END OF 2023 WITH THE BENEFIT BEING REDEPLOYED IN 2024 TO £3.7M FUEL GROWTH, INCLUDING IN THE U.S.
Slide 19: Adjusted EBITDA
ADJUSTED EBITDA FY23 £17.4M § ACHIEVED STRONG YEAR-ON-YEAR GROWTH WHILE MAINTAINING HEALTHY MARGIN FY22 £15.7M § UNDERLYING GROWTH OF +30% DEMONSTRATES STRENGTH OF CORE BUSINESS1 § PROFORMA ADJUSTED EBITDA OF £20.1M2 +10.8% 26% YOY GROWTH ADJ. EBITDA VS FY22 MARGIN IMPROVED EBITDA DRIVEN BY POSITIVE
Slide 20: Cash
CASH 76% ADJ. CASH £13.3M CONVERSION2 § WE ARE HIGHLY CASH GENERATIVE £29.3M § ACQUISITIONS IN-YEAR OF £17.6M1 £15.8M § CASH POSITION AT YEAR END £15.8M § CASH POSITION AS AT 17 APRIL £22.0M CASH CASH FLOW FY22 IMPACT PPE & TAX FINANCING FY23 PRE-ADJ M&A1 CASH OF ADJ INTANGIBLES PAID COSTS CASH ITEM
Slide 21: Solly Solomou, Founder & CEO
SOLLY SOLOMOU FOUNDER & CEO 21 LBG MEDIA FY23 RESULTS
Slide 22: Summary & Outlook
SUMMARY & OUTLOOK NEEDLE MOVING ACQUISITION IN LARGEST AD MARKET IN THE WORLD QUICK ACTION TAKEN ON OPERATIONAL CHALLENGES CLEAR LINE OF SIGHT TO £200M REVENUE UK MARKET LEADERS IN YOUNG ADULTS RECORD AUDIENCE GROWTH AND ENGAGEMENT GOOD START TO 2024, WITH INCREMENTAL IMPACT OF BETCHES AND ANZ CHANG
Slide 23: Q&A
Q&A 23 LBG MEDIA FY23 RESULTS
Slide 24: Appendix
APPENDIX 24 LBG MEDIA FY23 RESULTS
Slide 25: Our Journey
OUR JOURNEY 2015 2023 2021 12BN 2006 2012 VIEWS LBG IS 452M FOUNDED – AUDIENCE FIRST CONTENT & WEBSITE 34M LISTING ON LSE AS LBG GLOBAL LAUNCH FOLLOWERS MEDIA PLC LAUNCH OF THE IPHONE & 128BN FACEBOOK VIEWS FINANCIAL DIGITAL SPEND CRISIS – NEWSPAPER OVERTAKES AD SPEND NEWSPAPER STEP-CHANGE DECLINES
Slide 26: Some of Those We Work With
SOME OF THOSE WE WORK WITH DIRECT BRANDS INDIRECT PARTNERS 26 LBG MEDIA FY23 RESULTS
Slide 27: Direct Revenue Case Study
DIRECT REVENUE CASE STUDY THE AA: FINDING ITS WAY WITH YOUNG ADULTS § TO PROTECT THE AA’S FUTURE GROWTH & DEMONSTRATE THEY UNDERSTAND THE NEEDS OF YOUNG DRIVERS § WE CREATED A CAMPAIGN AROUND BRITISH “BANGERS”, RELEVANT TO THE REAL CARS, AND DRIVING EXPERIENCES, OF YOUNG PEOPLE § WE COLLABORATED WIT
Slide 28: Betches: A Step-Change Acquisition
BETCHES: A STEP-CHANGE ACQUISITION $14.6M 28% 27% FY22 3YR CAGR FY22 ADJ. REVENUE TO FY22 EBITDA MARGIN 250M+ ~32M AVERAGE TOTAL FOLLOWERS1 86% 14% MONTHLY SOCIAL REACH MAJORITY WOMEN WEIGHTED AUDIENCE 1 - Followers relates to both social media followers, as well as subscribers to both podcasts and
Slide 29: P&L
P&L Y/E DEC 2022 Y/E DEC 2023 £’000 £’000 REVENUE 62,809 67,510 NET OPERATING EXPENSES (55,792) (61,423) EXPECTED CREDIT LOSS REVERSAL 467 (22) OPERATING PROFIT 7,466 6,065 ANALYSED AS ADJUSTED EBITDA 15,683 17,368 DEPRECIATION (1,633) (2,088) AMORTISATION (804) (1,369) IMPAIRMENT - (318) SHARE BASE
Slide 30: Balance Sheet
BALANCE SHEET £000S DEC 2022 DEC 2023 GOODWILL & OTHER INTANGIBLES 15,436 39,782 PROPERTY, PLANT & EQUIPMENT 3,670 5,982 INVESTMENT IN JV 359 690 DEFERRED TAX ASSET 260 24 OTHER 592 198 NON CURRENT ASSETS 20,057 46,676 TRADE AND CURRENT ASSETS 20,370 28,765 CURRENT TAX ASSET 378 62 INVENTORY - 27 CA
Slide 31: Cashflow
CASHFLOW Y/E DEC 2022 Y/E DEC 2023 £’000 £’000 CASH FLOWS FROM OPERATING ACTIVITIES CASH (USED)/GENERATED FROM OPERATIONS 1,295 10,100 TAX (PAID)/RECEIVED (2,693) (2,898) NET CASH (USED)/GENERATED FROM OPERATING ACTIVITIES (1,398) 7,202 CASH FLOWS FROM INVESTING ACTIVITIES PURCHASE OF INTANGIBLE ASS
Slide 32: Thank You
THANK YOU CONTACT US: INVESTORS@LADBIBLEGROUP.COM 32 LBG MEDIA FY23 RESULTS
Slide 33: 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