LBG Media: “A positive update”
July 27, 2023
Youth-focused publisher LBG Media has received a very positive “BUY” update from investment bank Berenberg following LBG’s trading update. Its full numbers will be released on September 20th, but LBG co-founder Arian Kalantari (aged 32) resigned from the company on July 26th.
LBG is the London-listed published of what started out as ‘Ladbible’ and is now one of the world’s largest publishing and video outfits. It has an audience of some 115 million users in the US, 28.5 million in the UK and 114 million in India as well as related enterprises in Germany, France, Australia and New Zealand.
Established in 2012 it has grown into the world’s all-time most viewed and engaged publisher on Facebook. It is the biggest publisher on TikTok.
The bank says: “[LBG] expects to report H1 revenue of £27.2 million [€31.7m] (H122: £24.8 million), which represents growth of approximately 10 percent. Importantly, in order to meet our forecast of £69.7 million for the full year, the business would need a 39/61 percent H1/H2 revenue weighting respectively. While this may seem steep, this is exactly what the business achieved in FY22, which gives us confidence in its ability to do so again, especially as the macroeconomic outlook improves.”
Berenberg adds that further expansion is likely in the US. The bank says: “[LBG is an] indispensable platform: As regulators step up efforts to counter data privacy violations, advertisers are being pushed further up the marketing funnel, marginalising smaller digital advertisers while boosting the value of LBG, which possesses first-party data, large endemic audiences and vertical dominance – which drive audience ownership, engagement and intent.”
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