Half-year trading update
LBG Media plc reported a strong first half of 2026, with revenue increasing 19% to £52.4 million, driven by a 22% constant currency growth, significantly up from the prior year. While adjusted EBITDA decreased to £8.0 million from £12.2 million due to planned investments in leadership and sales, a shift towards higher-margin Direct revenue streams which now constitute over 70% of Group revenues, and a lack of recovery in Indirect revenue, the company is increasing its full-year revenue outlook to approximately £110 million. Despite lower expected full-year EBITDA of around £22 million due to the revenue mix, LBG Media maintains a strong cash position of £28.4 million, supporting its strategic shift towards more predictable earnings.
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LBG Media plc, a social entertainment powerhouse with a focus on young adults, announces a trading update for the half-year ending 31 March 2026 ("H1 26"). All figures and commentary relate to this period, unless otherwise stated.
| ● | Acceleration of our revenue mix towards more predictable performance with greater visibility on earnings: strong revenue momentum, up 19% to £52.4m (H1 25: £43.9m). Constant currency revenue growth of 22%, a significant increase on FY25 (10% constant currency growth). |
| ● | EBITDA margins reflect changing revenue mix and investment, as outlined in our FY26 Outlook: lower adjusted EBITDA of £8.0m (H1 25 £12.2m), reflecting three key factors. Firstly, planned investment in senior leadership and sales capability in our U.S. and UK Direct markets. 1 Secondly, revenue and margin mix moving towards Direct revenue streams, which accounted for more than 70% of Group revenues at H1 26 (FY25: c.55%). Thirdly, we did not see a recovery in our Indirect revenue streams 2 in H1 26, with referral volumes and previously announced changes to Meta's algorithm for Facebook continuing in line with trends experienced in H2 25, leading to lower Group margins. |
| ● | Excellent growth in our Direct revenue streams : we continue to expand existing customer relationships in both the U.S. and the UK. The underlying trend is an increased share of wallet and growth in the U.S. which is becoming materially more important, driven by strong demand from blue-chip brands for our relevant and engaging content on premium digital platforms to reach young adults. |
| ● | Momentum for our longstanding use of generative AI: investment in emerging technology driving productivity gains and client engagement. |
| ● | Global audience of c.0.5bn (FY25: 0.5bn). 3 |
| ● | Strong cash position : net cash and cash equivalents at 31 March 2026 of £28.4m (FY25: £30.8m). Our strong balance sheet and cash generation continues to support selective acquisitions where we see a compelling strategic fit. |
Outlook
The Group is moving towards higher quality revenue, with reduced future reliance on Indirect. The increased focus on Direct revenue streams is performing ahead of expectations, with the result that the Board is increasing its FY26 revenue expectations to c.£110m. However, the revenue mix now projected for the full year - with accelerating growth in our Direct revenue streams, which have lower margins than Indirect revenue streams - means that we expect Group FY26 EBITDA to be c.£22m4.
The H2 26 weighting for adjusted EBITDA reflects the benefit of senior hires, as well as cost savings made in H1 26. This is underpinned by excellent momentum from our Direct revenue streams, including a healthy pipeline for H2 26 in the UK and U.S., combined with our strong audience engagement.
CEO, Solly Solomou said:
"LBG Media delivered constant currency revenue growth of 22% in the first half of our financial year - a significant step-up from 10% constant currency revenue growth delivered in FY25. This shows the early benefits of our strategy to accelerate investment in our growth to drive predictable revenues, as outlined at our FY25 results in February.
The Board believes this transition positions the Group for a higher-quality revenue base over the medium term, with reduced reliance on Web and Facebook; increasing contribution from Direct revenues in the UK, U.S. and owned IP; and selective acquisitions."
Notice of half-year results
LBG Media intends to announce its 2026 half-year results on 9 June 2026.
Notes
- "Direct revenues": content for brands and media agencies to reach young adults.
- "Indirect revenues": revenue-sharing agreements with social media platforms that display adverts near our content and owned websites.
- Global audience reflects social followers, unique podcast listeners and average monthly website users in the period.
- FY26 consensus expectations: revenue of £105m and Adjusted EBITDA of £25.4m.
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