LBG Media ends year in line with expectations
By Josh White
Date: Tuesday 03 Feb 2026
(Sharecast News) - LBG Media reported full-year results in line with market expectations on Tuesday, delivering double-digit revenue growth and continued profit expansion as the group accelerated investment to support more predictable revenues.
The AIM-traded digital publisher posted revenue of £92.2m for the year ended 30 September, up from £86.2m a year earlier, representing 10% growth at constant currency.
Adjusted EBITDA rose 3% to £25.2m, with the margin easing to 27.4% from 28.4%, while profit before tax edged down 3% to £14m.
Cash and cash equivalents increased to £30.8m from £27.2m, with cash conversion of 93%, as the group ended the year debt free.
Direct revenues, which include branded content for advertisers and agencies, rose 13% to £49.7m, driven by strong growth in the United States and the UK.
Direct US revenue increased 29% to £18.6m, while direct UK rose 11% to £30m.
Indirect revenues, generated through revenue-sharing arrangements with social platforms and owned websites, were broadly stable at £41.5m, with 12% growth in social offset by a 13% decline in web revenues.
Total group revenue growth was 7% on a reported basis.
The group said repeat client revenue in the direct UK market increased to 82% from 78% a year earlier, while its global audience expanded to 509m.
LBG Media continued to invest in generative AI and emerging technology to drive productivity gains and client engagement, alongside strengthening its leadership team in both the UK and the US.
Looking ahead, the company said it was accelerating investment in higher-growth direct revenue streams, particularly in the UK and US, which it expected to account for an increasing proportion of group revenue.
It said it anticipated direct revenues could exceed 50% of group revenues and potentially reach 70% over time, with direct growth in the low-to-mid teens and Indirect revenues growing at a low single-digit rate.
The board said it expected overall EBITDA margins to remain broadly in line with consensus as the revenue mix evolved.
For the 2026 financial year, the group said it was seeing strong client engagement and a healthy pipeline in its direct markets, supported by its appeal to young adults and relationships with global brands.
It said its net cash position was expected to support selective acquisitions where there is a compelling strategic fit.
"2025 was an important step forward for us as we build a scalable, compounding model that drives predictable revenue growth," said chief executive Solly Solomou.
"This is centred around our market leadership with young adults, AI and data advantage, repeatable IP and our US platform.
"We are accelerating our investment to make the most of our healthy pipeline and the opportunity from major brands who are looking to our scale, content and appeal to reach young adults.
"Our strong cash generation supports this investment and also selective add-on acquisitions where we see a compelling strategic fit.
"Our positive momentum in our Direct revenue streams, progress in the US, strong pipeline and audience engagement support the board's confidence of further progress in 2026."
At 1208 GMT, shares in LBG Media were down 4.76% at 86.67p.
Reporting by Josh White for Sharecast.com.
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