TIDMLBG
RNS Number : 4454Q
LBG Media PLC
18 October 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law, by virtue of the European Union
(Withdrawal) Act 2018 - for immediate release.
18 October 2023
LBG Media plc
("LBG Media", or the "Group")
Acquisition of Betches Media, LLC
Step-change acquisition significantly accelerates growth and
presence in the key US market
LBG Media, the owner of the global leader in youth publishing
LADbible Group, is pleased to announce the acquisition of Betches
Media, LLC ("Betches", or the "Acquisition") a US-based media brand
founded by women and focussed on digital media content production
and publication for women. The Acquisition is for an initial cash
consideration of $24 million, funded from existing cash resources,
with up to a further $30 million cash consideration payable in
instalments, subject to Betches achieving certain revenue and
profitability targets to 2026.
Acquisition highlights:
-- Acquisition of a complementary, high growth US digital
publisher with a focus on millennial and Gen Z women.
-- Step-change addition to the Group, in line with stated
M&A ambitions, materially expanding its reach and footprint in
the US, the world's largest advertising market.
-- Significant additional revenue and Adjusted EBITDA
contribution. Funded through existing cash reserves, the
Acquisition will be highly accretive.
-- Major new brands added to the portfolio, new capabilities
unlocked and improved revenue diversification.
-- Expansion of both LBG Media's existing 100 million US
following as well as its overall audience of women.
-- Clear potential for cross-selling opportunities.
About Betches
Established in New York in 2011 by three female co-founders, who
are all remaining with the business post-Acquisition, Betches is a
high growth, cash-generative, and profitable business, where 92% of
revenue is Direct and derived primarily from long-term recurring
partnerships with blue-chip brands. With approximately 32 million
followers(1) , Betches has a highly engaged following and delivers
its unique perspective through social, branded partnerships,
live-events, merchandise, podcasts and newsletters. Women represent
approximately 86% of its overall audience, engaging with brands
that are focused on passion points such as moms, brides, travel,
relationships and humour.
In the year ended 31 December 2022, Betches generated over $14.6
million of revenue (unaudited) and delivered $3.9 million Adjusted
EBITDA, representing a margin of approximately 27%, having grown
revenues by 44% on the prior year.
Strategic rationale
The US represents the worlds largest advertising market. As well
as enhancing the Group's existing Direct revenue stream, LBG
Media's existing brands will benefit from the additional
capabilities and revenue channels that Betches brings, including
podcasts and newsletters. The Acquisition enables LBG Media to
accelerate its presence and understanding of the North American
market, while developing deeper relationships with US brands and
agencies.
Betches will remain a stand-alone business, but will work with
LBG Media's existing US team to develop larger direct brand
partnership opportunities that can span LBG Media and Betches
brands and audiences. This announcement builds on the successful
acquisition of UNILAD in 2018, another US-focused publisher, and
the Group continues to evaluate acquisition opportunities with the
intention of building capabilities and/or expanding geographic
reach.
Solly Solomou, CEO at LBG said:
"The joining of LBG Media and Betches is an incredibly exciting
milestone in the Group's story, progressing a key element of the
strategy that we set out at the time of IPO, and since. This deal
brings together two highly successful, growth-focused businesses
with complementary brands and skills, similar cultures and amazing
teams, to create a world-class proposition. The opportunity for the
enlarged group is exciting, as we will be better positioned to
capitalise on the significant US audience and advertising market. I
look forward to welcoming the Betches team to LBG Media."
Aleen Dreksler, CEO at Betches said:
"I t's a very exciting day in the history of Betches as we begin
this next chapter with LBG Media, a highly influential media owner
with massive global reach. Betches has been on the cutting edge of
women's media and disrupting internet culture in the US for over a
decade, and this acquisition will enable us to achieve new heights
in our global footprint, new original programming, brand partners,
and much more. The synergy between LBG and Betches is unmatched,
with our similar origin stories and passion for connecting with
millennial and Gen Z audiences, making this a natural next step for
our company. We remain committed to our ambition to be the number
one humour platform for women globally and are confident that the
legacy we have built for Betches will continue to thrive with the
newfound support of LBG Media and its leadership."
(1) Followers includes social media followers, as well as
subscribers to both podcasts and newsletters.
For further information please contact:
LBG Media plc investors@ladbiblegroup.com
Solly Solomou, Co-founder & CEO
Richard Jarvis, CFO
Mark Mochalski, Investor Relations
Fiona O'Nolan, Investor Relations
Zeus Capital Limited Tel: +44 (0) 161 831 1512
(Lead Financial Adviser, Nominated Adviser and Broker) www.zeuscapital.co.uk
Dan Bate / Nick Cowles (Investment Banking)
Kieran Russell / Daniel Phillips (Lead Financal Adviser)
Benjamin Robertson (Equity Capital Markets)
Peel Hunt LLP (Joint Broker) +44 (0) 20 7418 8900
Neil Patel www.peelhunt.com
Paul Gillam
Richard Chambers
Media enquiries Tel: +44 (0) 20 7466 5000
Buchanan lbgmedia@buchanan.uk.com
Richard Oldworth / Chris Lane / Toto Berger / Jack Devoy
Notes to editors
LBG Media is a global, multi-brand, multi-channel digital youth
publisher and is a leading disrupter in the digital media and
social publishing sectors. The Group produces and distributes
digital content across a range of media including video, editorial,
image, audio, and experience (virtual and augmented reality). Since
its inception in 2012, the Group has curated a diverse collection
of specialist brands using social media platforms (primarily
Facebook, Instagram, Snapchat, Twitter, YouTube and TikTok) and has
built multiple websites to reach new audiences and drive
engagement. Each brand is dedicated to a distinct popular interest
point (e.g. sport, gaming etc.), which is designed to achieve
broader engagement, increase relevance and ultimately build a loyal
community of followers.
The Group operates two core routes to market: Direct revenue,
which is principally generated from the provision of content
marketing services to corporates, brand owners, marketing agencies
and other entities such as government bodies and where the
relationship with the client is held directly by LBG Media; and
Indirect revenue, which is generated via a third party, such as a
social media platform or via a programmatic advertising exchange /
online marketplace, which holds the relationship with the brand
owner or agency.
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END
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