PRESS RELEASE 24 July, 2008
LBI International AB ("LBi"), the global marketing and technology
agency, today announces its results for the second quarter and first
half year. Mr Luke Taylor (CEO), Mr Theo Cordesius (EVP) and Mr Huub
Wezenberg (acting CFO) will comment on the results and market
developments during a conference call for press, analysts and
investors. The conference call will start at 09.00 CET.
The dial in number for the conference call is: +31 20 717 68 68
Participant pin code: 60482374#
- Strong turnaround in the second quarter from soft performance in
the first quarter.
- Focus on quality of earnings and cost reductions have pressured
revenue growth to some extent but improved margins.
- Net sales in the second quarter increased by 7.2% and amounted to
EUR 42.6 million (40.4).
- Second quarter EBITDA improved both sequentially 75% and
- Earnings per share in the second quarter came to EUR 0.05 (0.05).
- Recovery plan on track in the Netherlands as operations return to
profitability in the quarter.
- Acquisition of Special Ops Media early April 2008, a New York (US)
- based agency, completes the formation of our East coast Hub
- Execution against strategic roadmap presented earlier this year
continues according to plan.
A word from the CEO
In the second quarter we saw a strong turnaround from a soft
performance in the first quarter. We showed a significant improvement
in profitability as we focused on increasing the quality of earnings
and reducing costs across the entire group. As a result, EBITDA
improved both sequentially (75%) and year-on-year (13%).
During the quarter under review we also made good progress executing
against our published strategic roadmap; this is discussed in further
detail in the back section. We have now begun to apply more control
from the centre to ensure a greater consistency of offering and a
more standardized approach to global delivery. Qualification
procedures and commercial terms are also now more rigorously
enforced; while this is impacting our short term revenue development
it clearly contributed to improved profitability.
We are particularly encouraged by the speed with which we have
managed to effect both organizational and operational change in the
Netherlands. A new sense of momentum and urgency has quickly
translated into improved new business success. We have found in
general that the strides we have made in building out our ROI-led
data offering and the fast evolution of our digital advertising and
media services make us increasingly relevant in a challenging
economic environment. We have experienced a strong increase in demand
for these specific services across all geographies.
While we are confident of our ability to manage costs and meet our
EBIT forecasts we are cautious of current market conditions. Although
it is widely anticipated that digital marketing activity will be
least affected by cost-cutting measures, we are starting to see a
significant tightening of marketing and technology budgets inside
large multinationals. It is vital, therefore, that we continue to
focus on higher-margin retained business while deepening existing
client relationships by selling across our entire service range.
Luke Taylor, CEO
For further information please contact:
Luke Taylor, CEO, LBI International AB
+44 (0) 20 70 63 64 65, email@example.com
Huub Wezenberg, acting CFO, LBI International AB
+31 20 460 4500, firstname.lastname@example.org
Eva Ottosson, Group Communications Manager, LBI International AB
+46 709 41 21 40, email@example.com
LBi is a global marketing and technology agency. The Company employs
approximately 1,600 professionals located primarily in the major
European, American and Asian business centres, such as Amsterdam,
Atlanta, Berlin, Brussels, London, Milan, Mumbai, New York, Paris and
Stockholm. LBi blends the full range of service disciplines to create
innovative multi-channel solutions for national and international
corporate clients. By combining business and media strategy
development with creative design, industry expertise and the latest
digital communications technology, LBi offers a unique and uniquely
valuable proposition. LBi is listed on OMX Nordic in Stockholm and
Euronext in Amsterdam as (symbol: LBI).