LBG Media (LSE:LBG) reported a strong increase in revenue for the six months to 31 March 2026, with total sales rising 19% year-on-year to £52.4 million. Growth was driven by the company’s Direct revenue segment, where income from branded content almost doubled to £37.6 million and accounted for 72% of total group revenue. The performance was supported by continued expansion in the UK market and rapid growth across the United States, reinforcing the group’s strategic focus on advertiser-led content solutions.
Despite the strong Direct revenue performance, the company faced significant headwinds in its Indirect revenue business. Income generated through social media platform and website advertising revenue-sharing arrangements fell 41%, reflecting the impact of changes to Facebook’s algorithm and weaker search-driven traffic. As a result, adjusted EBITDA declined 34% to £8.0 million, while profit before tax dropped 79% to £1.8 million.
In response to the ongoing challenges within the Indirect segment, the board revised its full-year 2026 guidance. The company now expects revenue of between £100 million and £107 million and adjusted EBITDA of £15 million to £20 million. Nevertheless, management highlighted a healthy sales pipeline, improving profitability within the Direct business and a strong net cash position of £28.4 million, which provides flexibility to support investment initiatives and potential acquisitions.
LBG described 2026 as a transitional year as it continues shifting its business towards more predictable and higher-margin Direct revenue streams. The company is also increasing its use of generative artificial intelligence tools, including Mission Control and LAD Radar, to improve operational efficiency, content performance and client engagement. At the same time, management is implementing cost controls and leadership changes aimed at stabilising the structurally challenged web and social advertising operations.
The company’s outlook continues to benefit from solid financial fundamentals, including low leverage and healthy operating and free cash flow generation. However, investor sentiment remains affected by weak technical indicators, with the shares trading below key moving averages and a negative MACD signal. Valuation appears reasonable on earnings metrics, although the absence of a dividend limits support from an income perspective.
More about LBG Media plc
LBG Media plc is a UK-listed digital media and social entertainment company focused on engaging young adult audiences through content distributed across major social media platforms and owned digital properties. The group operates a portfolio of well-known brands that collectively reach hundreds of millions of users globally.
Its brands include LADbible, Betches, SPORTbible and GAMINGbible, which deliver entertainment, sports, lifestyle and gaming content across platforms such as Facebook, Instagram, Snapchat, X, YouTube and TikTok. The company generates revenue through a combination of bespoke advertising campaigns, branded content partnerships and revenue-sharing agreements with digital platforms, helping major brands connect with younger and often hard-to-reach audiences.
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