(Alliance News) - LBG Media PLC on Thursday said it had a "clear line of sight" to GBP200 million in annual revenue, triple its current level, amid acquisitions and organic growth, as it released its results for 2023.
The Manchester, England-based digital entertainment business focused on young adults owns the LADbible news and entertainment and viral video site.
Revenue was GBP67.5 million in 2023, a 7.5% rise from GBP62.8 million in 2022.
However, pretax profit decreased by 19% to GBP5.9 million from GBP7.3 million, as the result of higher adjusting items throughout the year. These included depreciation, which rose by 31% to GBP2.1 million from GBP1.6 million, and amortisation, which rose by 74% to GBP1.4 million from GBP804,000.
Adjusted earnings before interest, tax, depreciation and amortisation were GBP17.4 million, an 11% increase from GBP16.7 million in 2022.
LBG made significant progress into the US market in October last year with its acquisition of Betches Media LLC, the New York-based digital media brand with a focus on content for women. The acquisition was completed for an initial GBP19.3 million in cash.
LBG also made its operating model in Australia and New Zealand more efficient, in response to a year-on-year reduction in revenue and profitability, with changes effective from January 2024.
LBG last year announced a multi-year partnership with Val Morgan digital, the Australian online media publisher for young adults, for the delivery of direct revenue via a low-risk margin share.
Commenting on the overall results, Chief Executive Officer Solly Solomou said: "Our revenue and Ebitda growth in 2023 demonstrates the group's unique position and resilience in the face of some really testing market conditions."
Solomou added: "We operate in the largest and fastest growing segment of the advertising market and provide an unparalleled proposition for brands wanting to access young adult audiences. Combined with ongoing expansion in the US market and our diverse revenue model, we are confident in our position to create significant value for shareholders in the years ahead."
Looking ahead, LBG said it is on track to meet market expectations for 2024, which LBG placed at adjusted Ebitda of GBP23.5 million on revenue of GBP86.1 million.
"Our positive revenue momentum and platform for growth in the US leaves the group at a significant juncture in its evolution and provides a clear line of sight to achieving GBP200 million of revenue," the company added.
CEO Solomou bought 341,929 shares at 72.75 pence each on Thursday, worth GBP248,753.
LBG shares were up 12% to 75.50p each in London on Thursday morning.
By Emily Parsons, Alliance News reporter
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LBG Media (LBG)