Bank: LBG Media rated Buy
June 27, 2022
LBG Media is a UK-based multi-brand, multi-channel digital content publisher. At its core, LBG creates and distributes bespoke content through its 10 own brands, as well as content from third parties, to generate interactions with its global audience. It has an immense global audience of some 264 million followers, and a report from investment bank Berenberg states that LBG is the industry-leading youth publisher and has given the business a ‘Buy’ rating for its clients.
LBG issues more than 250 pieces of content daily via some of its highly-popular titles including Unilad, Unilad Tech, Unilad Sound and the ‘Bible’ series of Sport, Gaming and Food outlets as well as its Joyride and LAD Studios.
It works extensively with the likes of broadcasters such as Sky, Netflix, Disney+ and others.
Each of its own brands is dedicated to a distinct popular interest point ie food or sport, which is designed to boost engagement and relevance, with the ultimate objective of building a loyal community of followers.
“LBG has significant reach among the harder-to-reach younger generations such as Millennials (those born between 1981 and 1996) and Generation Z (those born between 1997 and 2012) who brand owners seek to reach and influence. LBG’s ability to efficiently evaluate and analyse insights and trends from this captive youth audience, combined with its 264 million followers and 63 billion content views in 2021, have positioned it as a key route for brand owners and marketing agencies to maximise engagement and reach, and design effective marketing solutions tailored to the coveted youth demographic,” states Berenberg.
The bank says that it expects LBG’s top-line to grow at about 10 percent CAGR in the 2022-2024 period.
“We believe that LBG will seek to replicate the success of its UK direct route to market in North America. We have run several scenarios flexing LBG’s revenue per user in North America that could result in group revenue being c9-61 percent higher than our base-case FY 2024E estimate,” says Berenberg.
LBG’s current share price is GBp118 and the bank has given it a target price of GBp180.