LadBible publisher faces £2m hit from dollar woes amid US expansion
The digital publisher, which has been expanding operations in the US, told investors it had 'done all it can to mitigate the impact', but said a weak dollar could cost it about £2million in revenues and £1million in earnings this year.
The US dollar index is down by almost 10 per cent since the beginning of the year as global investors have grown wary of the country's enormous debt pile, weaker economic growth and the impact of trade tariffs.
LBG, which owns US female-focused digital media brand Betches, took a £366,000 loss from FX movements over its first half, over up from £15,000 last year.
Analysts at brokers Zeus, Investec and Peel Hunt have cut their annual turnover and earnings forecasts for LBG by 2 and 5 per cent, respectively, due to the foreign exchange headwinds.
But LBG remains optimistic about increasing its turnover by 10 per cent at constant currency rates this year, despite elevated economic volatility partly resulting from recent tariffs.
The Manchester-based group, whose other brands include UniLad and SPORTbible, reported that its sales rose by 13 per cent to £43.9million in the six months ending March.
Indirect revenues jumped by 18 per cent to £24.5million following a weak comparative period on social platforms last year.
Direct turnover expanded by 8 per cent to £19.3million thanks to a strong performance in the US, where the firm's clients include Netflix, Dunkin' Donuts and PepsiCo.
Sales growth far outpaced the rise in costs, helping LBG's adjusted earnings before nasties climb by 18 per cent to £12.2million and pre-tax profits more than double from £3.3million to £8.6million.
Solly Solomou, chief executive of LBG, said: 'LBG Media has positive momentum, with double-digit growth in the first half of 2025.
'This reflects our diversified and agile model, which offers blue-chip brands access to the hard-to-reach 16-34 year old demographic.
He added: 'Our confidence of progress in the second half of the year is underpinned by our audience, the power of LBG Media's brands, our attractiveness to brands and celebrities, and the relevance of our content.'
LBG claims to be the UK's fifth largest social and digital business, with an audience of 520 million as of March, compared to 503 million at the same time last year.
The company is attempting to capitalise on two major long-term trends: an expanding digital advertising market and higher purchasing power among the millennial and Gen Z generations.
Consequently, LBG is heavily targeting the US market; it acquired the female-focused digital media firm Betches two years ago in a $54million deal.
Fiona Orford-Williams, director at Edison Group, said: 'Getting it right in the US is key to LBG Media's growth ambitions, and the Betches acquisition has given a good springboard, as well as broadening out the addressable audience.
'The second half of the year will provide more difficult comparatives, and currency moves are unhelpful, but full-year revenue progress in double figures should be achievable, and the medium-term potential remains positive.'
LBG Media shares were 5.3 per cent up at 99p on Tuesday morning, although they have still fallen by over a quarter this year.
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