LBG Media (LSE:LBG) shares plunged 22.9% to 27p after the board cut full-year earnings guidance following a 41% slump in indirect revenues, the company said.
The company, a social entertainment powerhouse focused on young adults, reported Direct revenues grew 95% to £37.6m and now account for 72% of Group revenue while Indirect revenues fell 41% to £14.5m.
"Our 2026 financial year is a year of transition, towards long-term value," CEO Solly Solomou said.
Adjusted EBITDA fell 34% to £8m from £12.2m as management invested in Direct sales and operations and the revenue mix shifted toward lower-margin Direct work.
The decline in Indirect was attributed to changes to Meta's Facebook algorithm and reduced search traffic from AI Overviews, with the group saying Social has stabilised and Web remediation actions are showing early benefits.
The group finished the period with net cash of £28.4m (30 September 2025: £30.8m), reiterated Direct as its long-term growth engine, and set the FY26 revenue and Adjusted EBITDA ranges cited above.
