Trading update and notice of half year results

LBG Media, the global digital entertainment business with a focus on young adults, is pleased to announce a trading update for the half year ended 30 June 2024 ("HY24" or "the period").

Trading update

• The Group expects to report first half revenue of £42.3m (HY23: £27.2m) representing growth of 55%. Excluding the Betches acquisition, organic growth was 29%.

o Direct revenue increased by 92% to £22.0m (HY23: £11.5m), and by 33% organically, reflecting strong performance in the UK and continued growth in the US, as well as a number of successful campaign activations across the UEFA Euro 2024 tournament.

o Indirect revenue increased by 28% to £19.7m (HY23: £15.3m), or 27% organically, with further acceleration of Web indirect that has been performing strongly, enhancing broader revenue diversification.

o Global audience increased to 493m, up from 410m at HY23 and 452m at FY23.1

• Adjusted EBITDA expected to be £10.2m (HY23: £3.0m) an increase of 240% driven by operational leverage, the Betches acquisition and a more efficient ANZ operating model that is delivering benefits as planned. On an organic basis adjusted EBITDA has increased by 190%.
• Betches contributed £7.1m of revenue and £1.5m of adjusted EBITDA in HY24 as integration continues to progress well.
• Cash and cash equivalents at 30 June 2024 of £26.6m compared to £15.8m at 31 December 2023.
• The UEFA Euro 2024 tournament has given the Group a number of opportunities to work with brands seeking to access our young adult audience, with notable campaigns including Euros-themed editions of the hugely popular original series of "Snack Wars" sponsored by Uber Eats.

Outlook

Whilst advertising revenues will continue to be typically weighted towards H2, this year is expected to be less pronounced for us given the positive effect of UEFA Euro 2024 campaigns in the first half and the acquisition of Betches, which has a more even split of revenue.

The global implementation of a new commercial model for Facebook at the end of H1 encourages publishers to focus on creating engaging, high-quality content, which firmly aligns with our expertise. As the largest publisher on Facebook, we have consistently demonstrated agility in adapting to platform changes. The recent implementation has created some short-term volatility within Indirect Social revenue, but we are confident in our business model and strategies to continue progress along our line of sight to £200m of revenue.

Given the strong start to the year supported by the Group's increasingly diversified revenue model, balanced by the volatility caused by the new Facebook commercial model, the Board remains confident in the outlook for the full year and that performance will be in line with market expectations.2

CEO, Solly Solomou commented:

"It has been a strong start to the year as the business continues to make good progress along the line of sight to £200m of revenue. Performance in Direct and Web highlight the strength of our diverse revenue model and the operational changes in ANZ are delivering planned benefits, with further expansion of our partnership within the APAC region. We have continued the integration of our US commercial teams to leverage early customer wins by presenting a 'one stop shop' for brands wanting to reach a diverse young adult audience. I am extremely excited by the opportunities ahead as our diverse revenue model and strong momentum position us well for continued success."

1 Global Audience reflects social followers, unique podcast listeners and average monthly website users in the 6 months to 30 June 2024.

2 External market consensus for year ending 31 December 2024 is currently: Revenue £86.0m and Adjusted EBITDA £23.5m.

Notice of Half Year Results

LBG Media intends to announce its 2024 half year results on 18 September 2024.

Change of accounting reference date

LBG Media also announces that it has changed its accounting reference date and financial year end from 31 December to 30 September. Going forward, interim and annual accounts will be prepared and published for the six months ended 31 March and 12 months ended 30 September, respectively.

The Company has changed its financial year end to better guide business planning and investment pacing. Moving the seasonal calendar Q4 spend into the first half of the financial year will improve visibility over market dynamics and enable greater transparency on performance for external stakeholders. The Company intends to provide expanded proforma disclosures as part of future statements to support transparency and clarity on comparative periods.

As a result of this change, the Company's future reporting calendar is expected to be as follows:

• Publication of unaudited interim accounts for the six-month period ending 30 June 2024 on 18 September 2024;
• Publication of audited accounts for the nine-month period ending 30 September 2024 no later than 31 January 2025; and
• Publication of unaudited interim accounts for the six-month period ending 31 March 2025 no later than 30 June 2025.