LBG Media (AIM:LBG) told investors it expects full-year trading for the year to 30 September have landed in line with market expectations, with revenue of around £106m and adjusted EBITDA of £16.5m, both as previously flagged to the market.
The AIM-listed digital media and social entertainment group, which focuses on short-form content for young adults, said revenue rose 16% at constant currency from £92.2m in the prior year, though organic growth was slower at 8%.
Adjusted EBITDA fell 35% from £25.2m, a decline management had already signalled, with the organic decline steeper at 40%.
Direct revenues grew 69% year-on-year, or 57% organically, with the group citing continued strong contribution from its US business, Betches.
Indirect revenues fell 50%, which the group attributed to a continued sector-wide decline in Facebook video and web revenues; it said it is investing in original content and monetising intellectual property across platforms, with YouTube a growing focus.
Uncovered, the Gen Z-focused, social-first agency LBG Media acquired on 19 June, generated revenue of approximately £6.1m and adjusted EBITDA of approximately £1.5m in the period from acquisition to the year end.
The group moved to net debt of £5.8m at 30 September, against net cash of £30.1m a year earlier, a shift it attributed to the £27m initial cash payment for Uncovered, lower Indirect profitability and continued content investment.
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"Our relationships with our top 20 clients have deepened, the US continues to provide exciting growth opportunities, and Uncovered, which we recently acquired, is already trading ahead of the Board's expectations," said chief executive Solly Solomou.
The board said it remains confident of delivering growth in the 2027 financial year, pointing to momentum in Direct, its expanding US presence including Betches, and an increasing contribution from Uncovered.
LBG Media intends to announce its full-year results in February 2027.