LBG Media has blamed AI search overviews and changes to Meta algorithms as it lowered its full-year revenue and EBITDA forecasts despite strong acceleration in revenue growth in its HY results for the six months to March 31.
Total group revenues were up 19% for the period to £52.4m (1H25: £43.9m), driven by direct revenues, which grew 95% to £37.6m (1H25: £19.3m). Income from branded content almost doubled to £37.6 million and accounted for 72% of total group revenue, supported by continued expansion in the UK market and rapid growth across the United States and a strategic focus on advertiser-led content solutions.
Indirect revenues, however, declined 41% to £14.5m (1H25: £24.5m). 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.
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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 AI, 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, although investor sentiment remains affected by weak technical indicators, with the shares trading below key moving averages and a negative MACD signal.
LBG Media chief executive Solly Solomou said: “Our 2026 financial year is a year of transition, towards long-term value.
“While our strategy to drive repeatable revenue growth is making good progress – with our direct revenue streams almost doubling in 1H26 – our indirect business was hit harder than expected.
“As a result, we have lowered our forecasts for FY26 and made changes to stabilise our Web business, alongside our steps to capture the further opportunity in our Direct markets.”
He added: “LBG Media’s planned shift to more predictable Direct revenues with greater visibility on earnings is accelerating. We are seeing an increasing share of wallet from large blue-chip clients, who see our relevant and engaging content on premium digital platforms as an effective way to reach young adults.”
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. 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.
