LADbible owner LBG Media more than doubles after strong trading and broker optimism

LBG has the highest number of video views among digital publishers in the UK

A well-timed positive note from Liberum at the end of November 2022 and a strong year-end trading statement (19 December) have helped propel shares in LADbible parent and diversified youth publisher LBG Media (LBG:AIM) up more than 120% in just two months to 115p.

The company said revenue accelerated in the seasonally strong second half to reach year on year growth of 20% as both direct and indirect segments contributed to growth.

The company floated on the London stock exchange in December 2021 at 175p per shares which means they are down just over a third from the listing price.

Liberum’s analysts see a significant opportunity for the company to grow its direct business in the US and monetise social media platforms beyond Facebook. LBG has 168 million followers across all its brands’ websites and social media channels, two thirds of which fall into the 18-34 age range. Liberum believes this to be a ‘highly attractive’ but hard to reach demographic which enables the firm to attract global advertisers.

Facebook and LBG entered into an agreement in 2018 to share revenue from in-video advertising within Facebook. LBG earns 55% of revenues from all three-minute videos which are watched for more than sixty seconds, according Liberum. [MG]