- LBG Media
- 09 June 2026 09:13:32
Source: Sharecast
The company now expects FY26 revenue of between £100m and £107m, down from previous guidance of £110m, and adjusted earnings before interest, tax, depreciation and amortisation of £15m to £20m, down from £22m.
AIM-listed LBG said that while Direct continues to see a healthy pipeline and improving deal margins, the trends in Indirect have not stabilised as quickly as expected.
"The revised guidance reflects an anticipated further decline in web and social revenues within the Indirect revenue stream, which has reduced visibility as part of a long-term structural shift away from websites towards social platforms and video content, and the continued impact of changes to the Facebook algorithm," it explained.
"A number of mitigating actions have been taken across the Indirect business, including cost controls, new leadership and improvements to our processes and data-driven approach, including innovation with AI. We are starting to see the benefits of these changes. However, the low end of the EBITDA range cited above reflects a continuation of the current monthly trend."
The guidance downgrade came as LBG posted a 19% increase in revenues for the six months to the end of March to £52.4m. Direct revenues rose 95% to £37.6m, while Indirect revenues fell 41% to £14.5m. The latter continued to decline in both LBG’s social media revenue sharing agreements and its owned websites, due to Facebook algorithm changes.
Adjusted EBITDA declined 34% during the period to £8m, driven by planned investment in the company’s Direct sales and operations.
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.
"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."
At 0910 BST, the shares were down 21.4% at 27.50p.
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