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LBG Media reports strong FY25 growth driven by U.S. expansion and a strategic shift to predictable Direct revenues. Cash-rich and debt-free.
This article covers information on LBG Media PLC.
LON:LBGLBG Media has delivered a solid FY25, with revenue of £92.2m and adjusted EBITDA of £25.2m, both in line with market expectations. Growth was driven by strong Direct revenues (work done directly for brands and agencies) and a stabilising Indirect stream (revenue shares from platforms and websites).
The strategy is clear: lean harder into Direct, especially in the U.S., to make earnings more predictable and less exposed to platform swings. Cash generation remains strong, the balance sheet is debt-free, and the pipeline for FY26 looks healthy.
The company issued a correction to yesterday’s RNS: it now expects Direct margins before central costs to be in the mid‑20% range. That’s still attractive at scale and aligns with the stated plan to grow Direct as a share of the mix while keeping Indirect margins above 50%.
| Metric | FY25 | YoY (pro forma) | Notes |
|---|---|---|---|
| Group revenue | £92.2m | +7% (+10% at constant currency) | Adjusted Group Revenue £92.0m |
| Adjusted EBITDA | £25.2m | +3% | Margin 27.4% vs 28.4% |
| Profit before tax | £14.0m | -3% | Includes growth investment |
| Cash and cash equivalents | £30.8m | +13% | No debt; cash conversion 93% |
| Direct revenue | £49.7m | +13% | UK £30.0m (+11%); U.S. £18.6m (+29%) |
| Indirect revenue | £41.5m | +1% | Social £25.3m (+12%); Web £16.2m (-13%) |
| Global audience | 509m | +1% | Followers, unique podcast listeners, avg monthly web users |
Direct (content and campaigns produced for brands and agencies) now accounts for 54% of revenue and grew 13%. The U.S. was the standout at +29% to £18.6m, with three U.S. clients each now over $1m and a “one-stop shop” offer across LADbible and Betches gaining traction. The UK rose 11% to £30.0m, with repeat revenue at 82% and a 28% brief conversion rate.
Indirect was essentially flat overall, masking a two-speed picture: Social rose 12% to £25.3m, while Web fell 13% to £16.2m, reflecting weaker referrals and a tough comparator. Management has strengthened the Web team and expects actions to support recovery.
LBG plans to accelerate investment in Direct in the UK and U.S. and expects Direct to exceed 50% of Group revenue and potentially reach 70% over time. Guidance now points to Direct revenue growth in the low‑to‑mid teens with margins before central costs in the mid‑20% range. Indirect is expected to grow at low single digits with margins above 50%.
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Translation: a bigger share of more predictable, relationship-led sales, supported by a capital-light, high-margin Indirect flywheel on premium social platforms.
Cash and cash equivalents rose to £30.8m with 93% cash conversion and no debt – plenty of firepower for selective bolt-on deals. During the year the Group paid a $5.5m earnout to Betches, bought £4.0m of shares into the Employee Benefit Trust to satisfy future awards, and still finished with higher cash. A new London office lease was signed post year end (10 years, £2.5m per annum) to support scale.
The U.S. leadership bench has been upgraded with seasoned operators across partnerships, operations and creative. That matters: the U.S. is the world’s biggest ad market and LBG’s growth multiple if execution lands.
On the tools side, LBG continues to lean into AI – not as a gimmick, but to lift productivity and engagement. Mission Control (real-time content analytics), EMMA (workflow), LAD RADAR (trend spotting), ARNOLD (video QC), and in-house subtitling are good examples. The thesis is simple: faster, smarter, more engaging content that improves outcomes for clients and monetisation for LBG.
Management reports increasing client engagement and a strong FY26 pipeline in the UK and U.S. Direct markets. They expect Group EBITDA margins to remain in line with consensus near term, improving over time as scale benefits kick in and higher-value IP is monetised across channels.
Revenue disclosure has been sharpened to the four core markets (Direct UK, Direct U.S., Indirect Social, Indirect Web) which should help investors track the mix shift and progress more clearly.
LBG Media has moved through FY25 with controlled growth, strong cash, and clear focus. The pivot towards higher-visibility Direct revenues – underpinned by a robust social footprint and AI-enabled operations – is the right move, in my view. The mid‑20% Direct margin before central costs guidance feels sensible given the investment cadence and the land‑and‑expand dynamics in the U.S.
If management keeps widening U.S. relationships and stabilises Web while Social holds up, FY26 should show further progress. Watch the mix shift, U.S. client wins, and cash conversion – if those keep trending in the right direction, the investment case strengthens.
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