LadBible owner claims it is the ‘number one’ news publisher on TikTok

The group behind LadBible has shrugged off a disappointing financial performance with claims that it has become the “number one” news publisher on TikTok.

LBG Media told investors on Wednesday that the number of TikTok followers grew 72 percent in the year to December 31 compared to the previous year.

Its global audience grew 39 percent year-over-year to 366 million, with 98 billion content views over that period, up 56 percent year-over-year, the company said.

But pre-tax profit fell 10 per cent to £7.3 million over the period as sales growth of 15 per cent to £62.8 million fell short of forecasts. Adjusted EBITDA for the year was down six per cent to £15.7m.

LBG said: ‘While we recognize that the Group fell short of its initial 2022 sales and profit targets, we are pleased with our robust performance given the rapidly evolving macroeconomic issues affecting UK and international markets throughout the year.’

LBG Group shares fell 3.9 percent by midday on Wednesday to about 74 p.m.

The Manchester-based media group laid off 43 employees in the second half to cut costs, but opened a new office in New York to expand in the US “with content for local audiences.”

LBG also said its acquisition of Go Animals’ social pages, which it rebranded as Furry Tails, saw solid growth in 2022.

It has yet to deploy the £30 million it raised through an IPO, which he says gives the group “significant firepower for both acquisitions and organic growth opportunities.”

On dividends, the group said: “The Board of Directors understands the importance of dividends to many shareholders, but given the fast-growing nature of the Group, the Directors intend to reinvest a large portion of the Group’s income to enable growth. The Board of Directors will consider a progressive dividend policy in due course.’

Boss Solly Solomou added: “We have made continued financial and operational progress in 2022. H2 was particularly strong, delivered in a challenging environment, with both of our core revenue streams demonstrating the resilient nature of our business.

LBG is well positioned to capitalize on the fast-growing digital media market. We have a diverse range of brands targeting the hard-to-reach 18-34 age group, have expanded our capabilities, with our LADnation survey platform becoming an increasingly important part of our offering, and are taking advantage of the significant growth opportunities presented by the American market has to offer.

“We ended 2022 with a lot of positive momentum, as evidenced by our record direct revenue performance for the fourth quarter, and with this momentum continuing into 2023, I am excited for what lies ahead for the company.”

Fiona Orford-Williams, director at Edison Group, said: ‘After a difficult opening last year, LBG had a much better second half, with particularly good momentum in the fourth quarter, which is expected to continue into the new year.

“The good fourth quarter was partly natural seasonality, partly aided by the FIFA World Cup, and partly by the group’s repositioning towards shorter video (with particular success on TikTok) and a more diversified content base – all still aimed at a younger audience.”

She added, “The grand prize for LBG will depend on its success in building its presence in the US. It’s still early days here, but early signs are encouraging and the group has experience building its brands in Australia and Ireland. The group still has much of the money it raised on the stock market at the end of 2021, so it has the resources to continue to invest and buy where necessary.”

Analysts from Peel Hunt said, “Shares are down 40 percent YTD and are trading at 12x FY23E PE. We think they still look cheap and see room for outperformance as the year progresses given the short-form traction. We keep our Buy.’