LBi sees continued strong underlying performance in Q3 2012
Amsterdam (the Netherlands), 7 November 2012 – LBi International N.V. (NYSE Euronext symbol: LBI), Europe’s largest independent marketing and technology agency, today reports its third quarter results for the period ended 30 September 2012.
- Q3 2012 net sales up 27.3% versus Q3 2011 reflecting strong growth in all regions outside Central and Southern Europe;
- Q3 2012 adjusted EBITDA up 26.3% to EUR 10.1 million vs. Q3 2011 (EUR 8.0 million), EBITDA margin at 16.4% (16.5%);
- Intended public offer by Publicis to acquire all shares of LBI for EUR 2.85 per share announced in September;
- Q3 2012 results impacted by EUR 8.9 million one-off charges (principally transaction cost relating to Publicis deal, accelerated integration of US business and related revision of Mr Youth earn out arrangement;
- Healthy financial position with limited net debt of EUR 8.5 million;
- Positive cash flow from operations of EUR 9.6 million in Q3 2012.
Luke Taylor, CEO of LBi commented:
We are broadly pleased with the progress we have made in Q3. Sales and adjusted EBITDA in the period increased by 27% and 26% respectively. Partly on the back of a sound contribution by Mr Youth’s social media marketing activities, strong growth was recorded in the US. The UK and Nordic regions also showed strong growth, while central Europe remained flat quarter over quarter. While these results once again demonstrate strong continued momentum we are cautious on the final quarter. Historically we have benefited from strong seasonal discretionary spend and it is not currently clear if the client budgets exist in Q4 to once again support this behaviour. We are also assuming a degree of disruption as a consequence of the storm damage in New York. In general clients are behaving tentatively and visibility has deteriorated slightly relative to typical levels. It should however be noted that in October, we saw a marked improvement in new business activity following a relatively quiet summer period in the run up to and during the Olympics.
Of course the most notable achievement in Q3 was the agreement we reached with Publicis Groupe on the intended public offer for all outstanding LBi shares. This agreement represents the successful conclusion of our corporate transformational plan and delivers an excellent platform for further consistent growth and service expansion under the wings of Publicis. We are delighted and look forward to work together when the transaction will be completed.
Download the full report:
LBi Q3 2012 trading update
Luke Taylor, CEO, LBi International N.V.
+44 20 7063 6465, luke.taylor@LBi.com
Huub Wezenberg, CFO, LBi International N.V.
+31 20 460 4500, huub.wezenberg@LBi.com