LBi unveils 2011 financial results with €196.6m sales
LBI has released its financial results for 2011, revealing €196.6m of sales, with net revenue up by 12%.
It was found that in the UK, net revenue increased by 22.2% and 24.3% for half 2 and the full year 2011, respectively, while in central and southern Europe, net revenue increased by 5.5% and 5.3% for H2 and FY 2011, respectively.
Luke Taylor, CEO of LBi, said: “2011 marked the most successful year in our history as a public Company with record sales and adjusted EBITDA of EUR 196.6 million and EUR 31.9 million, respectively. And while 2011 could be characterised as a transition year, we were nevertheless able to slightly improve our operating margins, illustrating on-going structural change within our agency.
“In the past year, we have continued rigorously to connect, share and leverage all our skill sets, platforms and products across the regions and make them available to our clients. We have clearly seen the merits of the merger with bigmouthmedia (BMM) which contributed to a sales uplift as we are now fully integrated and equipped to even better assist large multinational accounts as their business continues to shift from off line to online. We are also very excited about the social media, experiential and word of mouth marketing capabilities of New York based Mr. Youth, which we acquired in November 2011. The acquisition perfectly fulfils our strategic need and delivers breadth and depth and tools to an already significant social media offering which was nevertheless struggling to cope with global client demand.
“LBi will continue throughout 2012 to benefit from the on-going acceleration in interest in all things social, the trend for roster consolidation and the aggregation of digital services into single supplier multi-market mandates. We of course remain sensitive to macroeconomic events and in the Q4 period we institutionalised a small increase in contractor usage as a hedge against uncertainty. For this reason we do not anticipate any significant margin expansion in the short term but this will start to flow through as the contractor ratio becomes better optimised through the first half of this year. We recorded solid organic sales growth of 13% in Q4 (18% inclusive of 6 weeks Mr. Youth) and at the moment we continue to see good double digit organic growth developing throughout 2012.”
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