Higher sales and underlying results as market sentiment continues to improve
Last financial report issued by pre-merger LBI International AB; does not
include Bigmouthmedia results
LBi International N.V. today reports the last standalone second quarter and half
year results of LBI International AB ("LBi") for the period ended 30 June 2010.
On 29 July 2010 the merger with Obtineo Netherlands Holding N.V. (consisting of
Bigmouthmedia and EUR 40 million in cash) was completed and a new company was
formed called LBi International N.V., the largest European marketing and
technology agency. LBi was subsequently delisted from Nasdaq OMX Stockholm and
NYSE Euronext Amsterdam on 26 July 2010.
LBi International N.V. obtained a new listing on NYSE Euronext Amsterdam
(symbol: LBI) on 5 August 2010. The new company will initiate financial
reporting consolidating LBI International AB and Obtineo Netherlands Holding
N.V. results on 28 October 2010 with the publication of its third quarter and
year-to-date 2010 results. For more historic pro forma consolidated financial
statements of LBi International N.V. reference is made to the Prospectus
(www.lbi.com) for the admission to listing on NYSE Euronext Amsterdam and for
the rights offering underwritten up to EUR 10 million which is currently in
progress.
EXECUTIVE SUMMARY
Second quarter highlights
- Net sales up 12% year-on-year, reflecting continued recovery of demand and
strong commercial and operational progress in all regions.
- Adjusted EBITDA (excluding transaction charges) up 11% year-on-year as demand
for an integrated full service digital offering increase.
- Business in continental Europe picking up in the wake of US and UK business,
with solid performance in the Netherlands and rebound in Scandinavia.
- Market sentiment expected to further improve in the rest of the year;
increasing interest by clients in agencies that blend search, direct response,
data and digital skill sets.
- Please note that Bigmouthmedia sales EUR 5.5 million, EBITDA of 1.9 million
(pro forma revenue/EBITDA for the new group EUR 43.8 million resp. EUR 6.9
million).
A WORD FROM THE CEO
Our second quarter results show that we continue to benefit from an improving
demand for digital services across the board. The US and UK markets which have
pace set the recovery in the first quarter showed further growth. In addition
revenues also clearly picked up in Central & Southern Europe and Scandinavia
this quarter.
In this quarter, we have seen a further year-on-year improvement of underlying
operating margins in almost every region. The only exception was the Central &
Southern European region where the profit performance of our MetaDesign branding
business in Germany is down relative to the same period last. Given the recent
increase in inbound order levels, we do expect a meaningful recovery in the top
line of this business in the coming months.
During the quarter we continued to fine tune and optimise the company structure
to better promote collaboration and full service platform efficiencies. Over the
last two years, we have embedded a consistent level of excellence and a
performance driven culture across the business. We have quietly transformed our
organisation and upgraded most of our local leadership teams. We now have a
strong platform for future growth.
We are very pleased with the quality of recent new blue chip business successes
and encouraged by the enthusiastic client response to our unique full service
proposition which from the third quarter onwards - following the completion of
the merger with Obtineo Netherlands Holding N.V. ("Obtineo") - will also include
the advanced Search capabilities of Bigmouthmedia.
Further new business success and a marked improvement in sentiment across the
European markets, especially Germany should deliver further consistent growth in
both the third and fourth quarter of 2010. We expect to gradually increase our
margins as improved sentiment and revenue visibility will convert into more
efficient resource allocation.
The period under review has been particularly labour intensive for the company,
marked by the preparations for the merger with Bigmouthmedia and complex legal
and financial redesign. The transaction was formally concluded in July and as a
consequence LBi now has new strategic anchor shareholders and also operates as a
Dutch NV with a single listing on Euronext Amsterdam. This new listing and the
injection of a further EUR 50 million delivers an entrepreneurial platform which
will allow LBi to further drive consolidation in the sector.
Luke Taylor, CEO
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
For more information, go to www.lbi.com
About LBi
LBi is a global digital marketing and technology agency, blending insight,
creativity and expertise to solve business problems. The largest genuinely full
service agency of its kind in Europe, LBi provides the full range of digital
capabilities, including digital strategy, branded content, service design,
media, CRM, technology, managed hosting and support services.
The company employs approximately 1,500 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 is
listed on NYSE Euronext in Amsterdam (symbol: LBI).
[HUG#1440391]
LBi Q2 2010 report:
http://hugin.info/86897/R/1440391/384814.pdf
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Source: LBi International N.V. via Thomson Reuters ONE