LBG Media FY25 trading update: 10% revenue growth and strong U.S. momentum
LBG Media has delivered a steady set of FY25 numbers, with revenue and profit in line with expectations and clear traction in the U.S. headline growth. Revenue hit £92.2 million and adjusted EBITDA came in at £25.0 million, reflecting a diversified model that’s holding its own in a choppy digital ad market.
The Board is upbeat on FY26 with a “healthy pipeline”, particularly in the U.S. and UK. Cash generation remains a bright spot, giving the Group flexibility as it leans into growth.
Key numbers at a glance
| Metric | FY25 | FY24 | Commentary |
|---|---|---|---|
| Revenue | £92.2m | £86.2m | Up 10% at constant currency (see note on APAC adjustment) |
| Adjusted EBITDA | £25.0m | £24.5m | Up 2% year on year |
| Net cash | £30.1m | £27.2m | Cash up despite a $5.5m earnout paid in May 2025 |
| Cash conversion | 90% | Not disclosed | Strong operating cash flow relative to EBITDA |
| Direct revenue growth | Up 13% | n/a | Double-digit growth in the U.S. and UK |
| Indirect revenue growth | Up 2% | n/a | Social strong; Web weaker on lower referrals and tough comp |
Where the growth came from: Direct vs Indirect
Direct revenue up 13% across major markets
Direct revenue is the branded content side of the business – LBG creates bespoke campaigns for blue-chip advertisers and distributes them across social platforms and its own sites. This grew 13%, with double-digit gains in both the U.S. and UK.
Worth noting: the UK growth came despite a tough comparator. FY24 benefited from the men’s football European Championships, which generated approximately £3.5 million of revenue that year. That one-off tailwind wasn’t repeated in FY25, so underlying demand looks healthy.
Indirect revenue up 2%: Social strength offset by Web softness
Indirect revenue is the revenue share LBG receives when ads are placed next to its content by platforms (Social) or programmatically on its owned and operated sites (Web). The mix was mixed: Social delivered a strong performance, while Web declined due to weaker referral volumes and a tough prior-year comparator after Web revenues surged 77% in FY24.
Management says it has strengthened the team and structure to support a recovery in Web. That matters because a healthier Web business can improve monetisation diversity and reduce reliance on platform revenue shares over time.
U.S. acceleration and Gen Z reach are key differentiators
The U.S. is the world’s largest advertising market, so “excellent growth” there is more than just a nice line – it is strategically significant. Demand from global blue-chip brands is driving that performance, and the pipeline for FY26 is described as healthy.
Closer to home, LBG Media says it reaches 70% of the UK’s Gen Z population and is the UK’s fifth largest social and digital business. That audience scale is the engine that powers both Direct and Indirect revenue streams and is a clear selling point for advertisers chasing younger demographics.
Profitability and cash: discipline behind the growth
Adjusted EBITDA rose 2% to £25.0 million, which on £92.2 million of revenue implies an EBITDA margin of roughly 27%. That is a solid level for a social entertainment publisher, especially given the shiftable sands of digital monetisation.
Cash performance is a clear positive. Net cash increased to £30.1 million at 30 September 2025 from £27.2 million a year earlier, even after paying a $5.5 million earnout related to Betches in May 2025. Cash conversion was 90% (operating cash flow as a percentage of adjusted EBITDA), underlining good working-capital discipline.
Outlook for FY26: confidence, but no formal guidance
The Board remains confident about FY26, citing the diversified model, strong audience engagement and a healthy pipeline in the U.S. and the UK. No formal revenue or profit guidance is disclosed at this stage.
Investors should also note the constant currency comment: the 10% growth rate includes an APAC adjustment following a change to the ANZ operating model (a third party, Val Morgan Digital, now performs commercial operations in that region). This makes the year-on-year comparison cleaner.
The company plans to announce FY25 results in February 2026, which will bring full detail on margins, segmental splits and any early colour on FY26 trading.
What it means for investors: the good, the not-so-good, and the watch list
Positives
- Double-digit revenue growth and profit up year on year, in line with expectations.
- U.S. momentum looks strong, backed by demand from global blue-chip brands.
- Robust cash generation and higher net cash (£30.1 million) provide strategic flexibility.
- Diversified model across Direct and Indirect revenue streams reduces concentration risk.
- Powerful Gen Z reach – 70% of the UK’s Gen Z – remains a key competitive edge.
Considerations
- Indirect Web revenue declined after an exceptionally strong FY24 (+77%), with weaker referral volumes cited. Recovery is expected but not quantified.
- Profit growth was modest at +2% EBITDA, implying investment needs to be tightly managed to protect margins.
- UK comparators were tough in FY25 due to the £3.5 million boost from the men’s European Championships in FY24; event-driven spikes can make year-on-year reads lumpy.
Jargon buster
- Direct revenue: Bespoke content and campaigns created for brands and agencies, distributed across social and owned sites.
- Indirect revenue: Revenue shared with platforms and programmatic partners that place ads next to LBG content on social or the company’s websites.
- Adjusted EBITDA: Earnings before interest, tax, depreciation and amortisation, adjusted for certain items – a proxy for operating profitability.
- Cash conversion (90%): Operating cash flow divided by adjusted EBITDA – a measure of how effectively profits turn into cash.
- Constant currency (+10%): Growth measured excluding currency impacts; here it includes an adjustment for APAC following the ANZ operating model change.
My take
This is a clean, confidence-inspiring update. Growth is broad-based, the U.S. is firing, and cash generation is doing the heavy lifting. The softer Web performance is a watch item, but management is addressing it, and Social remains a support.
Overall, LBG Media looks well placed heading into FY26: diversified revenue, strong brand relationships, and enviable reach with young adults. The full-year numbers in February 2026 will be the next catalyst, particularly any colour on Web recovery and the pace of U.S. expansion.
