LADbible group makes first half progress and targets US trading next year

LBG Media, the Manchester-based digital publisher and owner of the LADbible, SPORTbible, and UNILAD platforms, reported solid progress in a half year trading update for the period ended June 30, 2022, and revealed it should begin trading in the US next year.

Revenue is anticipated to be £24.8m, eight per cent ahead of the prior year period, of £23m. This performance follows strong prior year comparatives, where revenue grew 133% in the first half of 2021.

Direct revenue increased by 11% to £10.6m driven by strong growth in the group’s international business.

Indirect revenue increased by four per cent to £13.6m. The significant growth in the volume of views continued in half year 2022, up approximately 40% versus the prior year period, reflected growth in market share.

However, this has been offset by a reduced revenue per view across the platforms as a result of the current economic environment.

Cash and cash equivalents as at June 30, stood at £28.6m, compared with £12.6m last year.

During the period the group completed the small bolt on acquisition of the Go Animals Facebook pages, with a total of 6.8m followers, increasing its target audience and bringing a new genre of content to the group’s brand portfolio.

Post-acquisition, the page has been rebranded as Furry Tails (@furrytailsofficial).

Looking ahead, indirect revenues have seen an improving trend towards the end of the first half into early trading in the second half, driven by an increase in revenues per view.

This is expected to continue into a seasonally stronger second half. Activity in the direct revenue segment has been supported by significant marketing in the first half which has led to a healthy pipeline of prospects as the group enters the second half of the year.

Management remains confident that the group’s full year performance will be at least in line with market expectations.

Given the investments made in the first half and typical seasonality in digital advertising, profitability is expected to be heavily second half weighted.

Chief executive, Solly Solomou, said: “The group continued to perform well both financially and operationally in the first half of the year, despite the challenging macro environment.

“We remain focused on producing exciting, relevant and socially responsible content to continue to engage our audience and grow our follower base.”

He added: “As outlined at IPO, our growth strategy remains centred around our three core growth pillars – geographies, acquisitions and capabilities.

“Included within this core strategy was an ambition to establish a physical presence in the US, one of the largest social media markets in the world and a key growth market. We are excited to be in the process of establishing operations in the US, which are expected to commence trading in 2023.”

Linked to the move into the US market, the group also launched an abortion policy for its workforce today.

The policy entitles staff up to 10 days paid time off for an abortion procedure. It also commits to giving employees a travel allowance up to $10,000 to support travel to access healthcare in relation to an abortion, in cases where the procedure is banned or restricted where they live.

Sinead Allchurch, HR director, said: “It’s important to us that all employees feel supported through situations which may be personally challenging and difficult. We believe that everyone has the right to make decisions in relation to their body, health and have access to comprehensive healthcare.”

Solly Solomou said: “As our company grows on a global scale, with the expansion into the US this year and a 45% increase in employees year on year, we’re always looking at new policies to ensure we are reflecting the needs of everyone and show that as an employer, we will always support them.”

The abortion policy will apply to all full and part-time permanent and fixed-term employees. All employees will also have access to resources that are available in relation to abortion procedures.

The publisher has also launched the ‘Someone You Love’ campaign, which aims to end the stigma around talking about abortion, while educating the LADbible audience on abortion rights closer to home and how they can help women in the US.

Despite the decriminalisation of abortion in Northern Ireland in 2019, women and pregnant people still face significant challenges when trying to access abortion services there and in the UK only 14% of the LADbible audience was aware that you needed two GP’s to approve an abortion pro.

LBG floated on the Alternative Investment Market (AIM) last December.