LBG Media’s shares took a hit as the company announced that its expected adjusted earnings growth for the year will be lower than anticipated. Despite this, the projections still show an increase compared to the same period last year.
At 0834 GMT, shares were down 9.8% at 79.0 pence, marking a decline of 8.60 pence. Looking at the year-to-date performance, the shares have experienced a significant decrease of 35%.
The London-listed digital media publisher stated on Wednesday that it anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to rise by 8% to a minimum of £17 million ($21.6 million) by the year’s end. This is compared to the previous year’s figure of £15.7 million. Adjusted EBITDA excludes exceptional and one-off items.
The reduced profit contribution of £3 million from the Australian business impacted the growth figure. Nevertheless, LBG has implemented operational changes in Australia since January to enhance efficiency. These modifications are expected to counter the decline in profits from the region, while also serving as a blueprint for improvements in other areas.
LBG Media projects revenue for the year to reach £67 million, compared to the previous year’s figure of £62.8 million. This growth is attributed to the accelerated progress made in the U.S. market through the acquisition of Betches Media in October.
Despite these challenges, the company remains confident about its growth prospects for 2024. It highlights the advancements in its U.S. ambitions, especially with Betches Media, along with the benefits realized from the new operating model in Australia. Additionally, LBG sees opportunities in key advertising moments such as Euro 2024 and the Olympics.