Lbg Media Plc · LSE:LBG
Lbg Media — FY2024 Earnings Presentation
33 slides from Lbg Media's earnings presentation, Jan 22, 2025
Slide 1: Full Year Results 2024
FULL YEAR RESULTS 2024 NINE MONTHS TO 30 SEPTEMBER 2024 22 JANUARY 2025
Slide 2: The Team
THE TEAM SOLLY DAVE SOLOMOU WILSON FOUNDER & CEO CHAIR 2 LBG MEDIA FY24 RESULTS
Slide 3: At a Glance
AT A GLANCE PROFORMA REVENUE ACCELERATION OF STRONG AUDIENCE GROWTH OF 22% U.S. GROWTH GROWTH AND HIGHLIGHTS STRATEGY ENGAGEMENT MOMENTUM1 SIGNIFICANT CONFIDENCE IN PERFORMANCE 6% INVESTMENTS £200M LINE OF AHEAD OF CALENDAR FOR GROWTH SIGHT YEAR MARKET EXPECTATIONS2 1 – REFERS TO PROFORMA REVENUE FO
Slide 4: Key Highlights
KEY HIGHLIGHTS DIRECT INDIRECT U.S. RELATIONSHIPS WITH ADVERTISERS RELATIONSHIPS WITH ADVERTISERS EXPANSION § ACCOUNTS FOR 51% OF TOTAL § GLOBAL AUDIENCE OF 503M, § EXPANDING REVENUE1 UP 19% YOY, OF WHICH 143M MARKET SHARE IN IN U.S. 2 WORLD’S LARGEST AD MARKET § STRONG CLIENT RETENTION AND ACQUISIT
Slide 5: Clients We Work With
CLIENTS WE WORK WITH INCREASED DIRECT U.S. WINS SCOPE EXPANDED REMIT: PIXEL, GEMINI, GOOGLE PAY, ANDROID INCREASING SPEND AND COLLABORATION JOINT BLUE-CHIP WIN WITH BETCHES SHOWCASING CAPABILITIES SIGNIFICANT DEAL OVER 12 MONTHS WITH “SNACK WARS” TEMPLATE FOR FURTHER U.S. WINS 5 LBG MEDIA FY24 RESUL
Slide 6: Purpose Driven Work
PURPOSE DRIVEN WORK MENTAL HEALTH THE PROBLEM OUR ACTIONS YOUNG PEOPLE ARE LAUNCHED ‘YOU’RE ON MUTE’ CAMPAIGN, WITH ADVERTS STATISTICALLY LESS APPEARING AT GLASTONBURY AND SHARED ENVIRONMENT LIKELY TO VOTE, AND 1/3 OF ACROSS OUR HUGE AUDIENCE ON SOCIAL CHANNELS GEN Z WERE UNDECIDED ABOUT THEIR VOTIN
Slide 7: Dave Wilson, Chair
DAVE WILSON CHAIR 7 LBG MEDIA FY24 RESULTS
Slide 8: Total Revenue
TOTAL REVENUE 12-MONTH PROFORMA § DIVERSE REVENUES ENHANCE RESILIENCE AND +22% +6% UNDERPIN SUSTAINABILITY OF OUR GROWTH £86.2M 12-MONTH ORGANIC § ORGANIC GROWTH IMPACTED BY SOFTER FACEBOOK PF GROWTH REVENUES & STRONG 2023 PROFORMA COMPARATOR: £70.9M FIFA WORLD CUP AND SHIFT TO SHORT-FORM IN £67.5M
Slide 9: Direct Revenue
DIRECT REVENUE 12-MONTH PROFORMA § STRONG PERFORMANCE IN CLIENT RETENTION AND +39% ACQUISITION DRIVING GROWTH £43.9M § SUPPORTING KEY CLIENTS ACROSS THEIR BUSINESS, I.E. GOOGLE – PIXEL, ANDROID, GEMINI, GOOGLE PAY £34.4M £31.6M § HIGH IMPACT CAMPAIGNS LIKE UBER EATS “SNACK £29.3M WARS” DEMONSTRATES
Slide 10: Indirect Revenue
INDIRECT REVENUE 12-MONTH PROFORMA § GROWTH DRIVEN BY STRATEGIC INVESTMENT IN WEB AND RISE IN SESSIONS & YIELDS, OFFSET BY SOFTER +6% FACEBOOK REVENUES FROM SHORT-TERM CALENDAR Q3 VOLATILITY £40.7M £38.3M § MAINTAINED POSITION AS ONE OF FACEBOOK’S LARGEST SOCIAL £37.1M PUBLISHERS AS SOCIAL REVENUES
Slide 11: Costs
COSTS 12-MONTH PROFORMA +24% § YOY INCREASE DUE TO BETCHES AND £3.4M INVESTMENTS IN GROWTH £61.8M £49.8m £50.1M § PROFITABLE ANZ OPERATING MODEL £48.4M FOLLOWING RESTRUCTURE 12 MONTH § INVESTING TO CONTINUE SCALING THE BUSINESS 9 MONTH 2023 2024 FY23 FY24 PAYROLL CONTENT OVERHEADS PF 1 PF 1 (12M) (9
Slide 12: Adjusted EBITDA
ADJUSTED EBITDA 12-MONTH PROFORMA § ADJ. EBITDA UP 16% ON 12 MONTH BASIS DUE TO: +16% q STRONG REVENUE GROWTH £24.5M q MORE EFFICIENT ANZ OPERATING MODEL £21.1M q GROWING U.S. FOOTPRINT § SIGNIFICANT GROWTH INVESTMENTS OF £3.4M £17.4M £16.9M § STRONG 2023 PROFORMA COMPARATIVE WHICH 12 MONTH INCLUDED
Slide 13: Cash
CASH £’000 PF 20241 PF 20231 % CHANGE FY2024 FY2023 REVENUE 86,245 70,895 22% 64,945 67,510 § STRONG CASH CONVERSION OF 105% ADJUSTED EBITDA 24,475 21,126 16% 16,929 17,368 § CASH POSITION AT 30 SEPT 2024 £27.2M (FY23: £15.8M) PROFIT BEFORE TAX 14,469 10,999 32% 12,139 5,937 § CASH POSITION AT 31 DE
Slide 14: Change of Year End
CHANGE OF YEAR END § FINANCIAL YEAR END HAS CHANGED FROM 31 DECEMBER TO 30 SEPTEMBER § THIS WILL DRIVE IMPROVED VISIBILITY OVER MARKET DYNAMICS, AS WELL AS SUPPORT INVESTMENT PLANNING & BUSINESS PACING § H1 RESULTS WILL NOW CONSIST OF SEASONALLY SIGNIFICANT Q4 CALENDAR PERIOD AS WELL AS TRADITIONALL
Slide 15: Key Performance Indicators
KEY PERFORMANCE INDICATORS BRIEF REPEAT CLIENT NO. OF >$1M CLIENTS CONVERSION REVENUE1 DIRECT 29% 74% 8 (UK & IRE) PF23: 29% PF23: 69% PF23: 3 GLOBAL DAILY WEB WEB YIELD PER 1K AUDIENCE2 SESSIONS3 SESSIONS4 503M 5.0M £10.07 INDIRECT PF23: 424M PF23: 4.9M PF23: £6.04 NO. OF >$1M CLIENTS U.S. AUDIENCE
Slide 16: Solly Solomou, Founder & CEO
SOLLY SOLOMOU FOUNDER & CEO 16 LBG MEDIA FY24 RESULTS
Slide 17: We Are Well Positioned in the Market
WE ARE WELL POSITIONED IN THE MARKET GLOBAL ADVERTISING MARKET TO REACH BY 2030 GEN Z IS PROJECTED TO BE OVER $1TN IN 2024 AND THE WEALTHIEST GENERATION IN PROJECTED TO GROW BY 7%+ EVERY REGION OF THE WORLD OVER 70% OF MARKETING MACRO SHIFT TO DIGITAL ADVERTISING BUDGETS ARE DIGITAL, COMPARED TO AND
Slide 18: Why We Win
WHY WE WIN SCALE & RELEVANCE WE ARE ONE OF THE THIS CONTRIBUTES TO THAT CAN BE WE ATTRACT THE WORLD’S LARGEST YOUTH HIGHLY CONSUMABLE WHICH RESULTS IN REINVESTED INTO BIGGEST CELEBRITIES PUBLISHERS AND WE & RELEVANT CONTENT, GROWING CONTENT & FURTHER & BRANDS WHO ARE LEVERAGE OUR LARGE & DRIVES ADVE
Slide 19: Progressing on Our Journey to £200M
PROGRESSING ON OUR JOURNEY TO £200M DIRECT OPPORTUNITY TO INDIRECT ACCELERATE VIA STRATEGIC M&A U.S. EXPANSION 19 LBG MEDIA FY24 RESULTS
Slide 20: Summary & Outlook
SUMMARY & OUTLOOK GOOD MOMENTUM ACROSS GROWTH LENSES OF DIRECT, INDIRECT, AND U.S. EXPANSION BUILDING BIGGER & DEEPER RELATIONSHIPS WITH CLIENTS U.S. INTEGRATION PROGRESSING WELL WITH SIGNIFICANT WINS AND ENCOURAGING PIPELINE STRONG Q1 PERFORMANCE, DOUBLE DIGIT GROWTH COMPARED TO SAME PERIOD LAST YE
Slide 21: Q&A
Q&A 21 LBG MEDIA FY24 RESULTS
Slide 22: Appendix
APPENDIX 22 LBG MEDIA FY24 RESULTS
Slide 23: Capital Allocation
CAPITAL ALLOCATION OPERATING CASH FLOW ORGANIC BUSINESS APPLICATION - AT INTERSECTION OF RISE OF DIGITAL ADVERTISING RE-INVESTING GROWTH M&A: AI & NEW OPERATIONAL INVESTMENTS - CAPABILITIES PRODUCTS & INFLUENCE OF GEN Z LEVERAGE - AUDIENCE - SIGNIFICANT SCALE AND RELEVANCE - CELEBRITIES AND BRANDS A
Slide 24: How We Generate Revenue
HOW WE GENERATE REVENUE DIRECT INDIRECT SOCIAL WEB SALES PIPELINE VIEWS SESSIONS CONVERSION % YIELD YIELD REVENUE REVENUE REVENUE • CONTENT DISTRIBUTED ACROSS SOCIAL • ADVERTISING PLACED AROUD CONTENT • CONTENT MARKETING FOR BLUE CHIP CLIENTS PLATFORMS GENERATING VIEWS. DISPLAYED ON OWNED WEBSITES,
Slide 25: Our Journey
OUR JOURNEY 2015 2024 2021 12BN 2006 2012 VIEWS 503M 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 26: Brands & Partners
BRANDS & PARTNERS DIRECT BRANDS INDIRECT PARTNERS 26 LBG MEDIA FY24 RESULTS
Slide 27: Uber Eats – Snack Wars x UEFA Euro 2024
X UBER EATS – SNACK WARS X UEFA EURO 2024 UBER EATS SPONSORED SPONTANEOUS +8% EUROS-THEMED EDITIONS OF PTS AWARENESS HUGELY POPULAR ORIGINAL SERIES “SNACK WARS”. BRAND +6% FRONTED BY FOOTBALL PTS TALENT & SUPPORTED BY LOVE SOCIAL CONTENT & IN APP ACTIVITY. FAVOURED +10 % DEMONSTRATES EXPANDING BRAND
Slide 28: Proforma Comparatives
PROFORMA COMPARATIVES £’000 PF 20221 PF 20231 PF 20241 H1 H2 FY H1 H2 FY H1 H2 FY REVENUE 30.0 26.6 56.7 37.4 33.5 70.9 38.9 47.3 86.2 ADJ. EBITDA 6.4 3.6 10.0 11.3 9.8 21.1 10.5 14.0 24.5 ADJ. EBITDA MARGIN (%) 21% 14% 18% 30% 29% 30% 27% 30% 28% 1- PROFORMA FIGURES REFER TO THE 12 MONTHS ENDED 30
Slide 29: P&L
P&L £’000 FY 2024 FY 2023 PF 20241 PF 20231 REVENUE 64,945 67,510 86,245 70,895 NET OPERATING EXPENSES (52,383) (61,423) (71,278) (59,845) DECREASE IN EXPECTED CREDIT LOSSES - (22) - - OPERATING PROFIT 12,562 6,065 14,967 11,050 ANALYSED AS ADJUSTED EBITDA 16,929 17,368 24,474 21,126 DEPRECIATION (1
Slide 30: Balance Sheet
BALANCE SHEET £’000 FY 2024 FY 2023 GOODWILL & OTHER INTANGIBLES 37,330 39,782 PROPERTY, PLANT & EQUIPMENT 4,947 5,982 INVESTMENT IN JV 1,195 690 DEFERRED TAX ASSET 274 24 OTHER 219 198 NON CURRENT ASSETS 43,965 46,676 TRADE AND CURRENT ASSETS 25,982 28,765 CURRENT TAX ASSET - 62 INVENTORY 22 27 CAS
Slide 31: Cashflow
CASHFLOW £’000 FY 2024 FY 2023 CASH FLOWS FROM OPERATING ACTIVITIES CASH GENERATED FROM OPERATIONS 20,264 10,100 TAX PAID (2,638) (2,898) NET CASH GENERATED FROM OPERATING ACTIVITIES 17,626 7,202 CASH FLOWS FROM INVESTING ACTIVITIES PURCHASE OF INTANGIBLE ASSETS (563) (1,045) PURCHASE OF PROPERTY, P
Slide 32: Thank You
THANK YOU CONTACT US: INVESTORS@LADBIBLEGROUP.COM 32 LBG MEDIA FY24 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