LBG Media shares are falling as its Australian arm experiences a profit hit

Shares of LBG Media fell more than 5 percent on Wednesday after the owner of LADbible revealed weaker profitability in its Australian arm.

The group told investors it expects to report full-year profits of £15.7 million, reflecting growth of 8 per cent year-on-year, accompanied by a decline of around £3 million in the Australian arm's profitability.

LBG Media said that without the Australian slump, it had expected to post underlying adjusted profits ahead of nasty growth of “more than 30 percent” year-on-year.

But LBG Media Shares fell 5.87 percent or 5.14p to 82.46p on Wednesday, after an annual decline of around 2 percent.

The group still expects sales to increase towards the end of the year due to higher audience levels and strong performance in the UK, US and Irish markets.

The company predicts sales will reach £67 million this year, up 6.6 percent on last year, and claims it has further deepened its market leadership position#.

The group said its UK and Irish operations performed strongly, with high conversion rates and a 'significant' number of new and growing customers.

LBG said: 'In Australia we have made a number of positive changes to make the business model more efficient from January 2024.'

The group added that LADbible now has more than 440 million followers, up from 410 million in the six-month phase.

October's acquisition of women's media brand Betches Media for $24 million is expected to help the company gain a foothold in the US market, it added.

Looking ahead, the company said: 'The board remains confident in the growth prospects for 2024, supported by the progress of our US ambitions with Betches Media, realizing the benefits of our new business model in Australia, as well as the opportunities presented by key advertising campaigns . moments such as the 2024 European Championship and the Olympic Games.'