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LBi sees continued sales and earnings growth in Q3 2011
Progress reflects success of business model transformation and strategy execution
Amsterdam (the Netherlands), 27 October 2011 – LBi International N.V. (NYSE Euronext symbol: LBI), Europe’s largest marketing and technology agency, today reports its third quarter results for the period ended 30 September 2011.
Key highlights
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Q3 2011 net sales up 8.0% (11.8% at constant rates) versus Q3 2010 reflecting continued growth in all regions;
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Q3 2011 adjusted EBITDA up 8.1% (13.5% at constant rates) to EUR 8.0 million vs. Q3 2010 (EUR 7.4 million); EBITDA margin at 16.5%;
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Net income of EUR 4.4 million in Q3 2011 vs. a negative net income of EUR 5.8 million in
Q3 2010; -
Strong and healthy financial position with positive operating cash flow of EUR 8.9 million in Q3 2011;
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New credit facility agreed with ABN AMRO Bank of EUR 70 million;
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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: “The progress in the third quarter and year to date reflects the success of our business model transformation and strategy execution over the past years. In the third quarter, we saw continued growth and delivered a sound margin performance. Excluding currency effects, we once again achieved double digit revenue growth.
All markets appear to be performing resiliently within the current climate and at present we do not see any evidence that major clients are belt-tightening. The prevailing mood of caution is in some instances even accelerating an increase in digital business at the expense of traditional above the line (mass media) marketing budgets. Furthermore, certain service categories such as CRM, mobile and social marketing are seeing a significant surge in growth and we are actively scaling headcount in these areas.
Recent new business wins such as E.ON, Reebok and ASDA and a strengthening pipeline provide further cause for optimism. We continue to benefit from services, category and geographic consolidation as leading brands centralise digital, data and direct activities. Our outlook for the remainder of the year is positive and we expect to maintain momentum in the fourth quarter.”
See link below for the full Q3 trading update
Contacts
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
LBi’s head office:
LBi International N.V.
Joop Geesinkweg 209 | 1096 AV Amsterdam | The Netherlands
P.O. Box 94829 | 1090 GV Amsterdam | The Netherlands
Company registration no. 30277334
Phone: + 31 20 460 45 00 | Fax: + 31 20 460 45 09
Web: www.LBi.com
About LBi
LBi International N.V. (NYSE Euronext Amsterdam: LBI) is the leading European marketing and technology agency with a global reach.
Headquartered in Amsterdam (the Netherlands), LBi has a staff of approximately 1,850 and operations in 16 countries. As a marketing and technology agency, LBi offers services to brands (clients) to help them engage with their customers through digital channels across a wide spectrum of their points of engagement, from initial awareness of the brand, through direct interaction with the services or products offered by the brand, to on-going relationships with the brand.
The Company offers a suite of services that are designed to help companies attract, engage and manage customers, more effectively. This full service offering combines analytical, direct marketing and digital competences, which means that LBi is able to develop big creative ideas in the digital space, build and manage complex transactional websites, run complex CRM programmes and even handle the media buying, planning and electronic public relations for blue chip companies.
