Progress reflects success of business model transformation and strategy execution -
Amsterdam (the Netherlands), 26 April 2012 – LBi International N.V. (NYSE Euronext symbol: LBI), Europe’s largest independent marketing and technology agency, today reports its first quarter results for the period ended 31 March 2012.
Q1 2012 net sales up 27.8% (25.3% at constant rates) versus Q1 2011 reflecting continued growth in all regions and successful integration of Mr Youth;
Q1 2012 adjusted EBITDA up 25.3% (22.7% at constant rates) to EUR 9.4 million vs. Q1 2011 (EUR 7.5 million), EBITDA margin at 16.2% (16.5%);
Q1 2012 organic revenue growth (1) at constant rates 17.8%;
Net income of EUR 4.5 million in Q1 2012 vs. a net income of EUR 4.6 million in
Q1 2011 (net result Q1 2011 benefited from a one off contingent consideration release of EUR 1.8 million);
Healthy financial position with limited net debt of EUR 8.2 million and a slight negative cash flow from operations due to primarily seasonal effects of EUR -1.1 million;
Continued increase of interest by clients (brands) in agencies that blend search, social, direct response, data and digital skill sets.
Luke Taylor, CEO of LBi commented: “We are broadly pleased with progress made in Q1. The growth recorded across the US, UK and Nordic regions remains particularly strong and we see accelerating opportunity for LBi to own both the digital and social agency of record opportunity. The acquisition of Mr Youth delivers a best-in-class competitive advantage in the rapidly growing social marketing segment and we are focused on the rapid transfer of these specialist skills across all our markets. We have also upgraded our platform toolset to facilitate the rapid integration of social marketing IP into all key hub offices. We believe that our offer which uniquely blends both digital and social marketing skill sets is now differentiated by the depth and breadth of skills mix and a cost effective delivery model. The success of this mix is best evidenced in recent multi market Agency of record wins for Honda, Skype and Etihad.”
(1) For best comparison, we have defined organic revenue growth as the movement between Q1 2012 revenues including Mr Youth and Q1 2011 revenues also including Mr Youth. Please note that US-based social media marketing agency Mr Youth was acquired by LBi in November 2011 and consolidated as of mid-November 2011.
Download the full report here: LBi quarterly update January – March 2012