LADbible owner LBG Media underwhelms with 2023 guidance, shares drop

Shares in "digital youth publisher" LBG Media dropped by 10% on Wednesday after the LADbible owner seemingly underwhelmed the market with revenue and profit growth guidance for the year.

The publisher said it expects to report revenues of £67m for the 2023 financial year, up 6.6% on last year, as it has "further deepened its market leadership position".

Adjusted EBITDA is expected to have grown by "at least" 8% to £17m or above, though this would have been 30% if it wasn't for a drop in profits in the Australia division.

Shares were down 9.8% at 79p by 0833 GMT.

LADbible now has over 440m followers, up from 410m at the half-year stage, while October's acquisition of women's media brand Betches Media for $24m is expected to help the company carve out a position in the US market.

UK and Ireland businesses are performing well, with high conversion rates and a "significant" roster of new and growing clients.

Over in Australia, where there was a £3m reduction in profitability during the year, the LBG is making a number of changes to the operating model from next year, combining the centralisation of social and web operations into its UK operations at a more efficient cost base for the indirect revenues and for direct revenues.

"The board remains confident in the growth outlook for 2024, supported by the progression of our US ambitions with Betches Media, realising the benefits of our new operating model in Australia as well as the opportunities represented by key advertising moments such as Euro 2024 and the Olympics," the company said.