Posted by LBi India March 25th, 2011
Executive Summary
LBi reports solid sales growth and improved underlying performance
Growth fuelled by increasing demand for digital branding, social media and mobile offerings
Amsterdam, 24 February 2011 – LBi International N.V. (NYSE Euronext symbol: LBI), Europe’s largest marketing and technology agency, today reports its pro forma and statutory Q4 and FY (12-months) results for the period ended 31 December 2010.
Fourth quarter highlights
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Q4 and FY 2010 net sales up 16% and 11% respectively, reflecting continued recovery of demand and strong commercial progress in major markets;
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Revenue fourth quarter negatively impacted by EUR 2 million (no result impact) due to change in media accounting principles as a consequence of recent transaction with BMM. Prior quarters restated (EUR 0.9 million in Q3);
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EBITDA at EUR 10.6 million includes significant exceptional gain of EUR 3.1 million in fourth quarter related to a reduction in contingent liabilities;
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Adjusted EBITDA was up 23% to EUR 7.5 million year over year, reflecting good underlying operational progress and margin improvement in merger transition year;
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Positive operational cash flow of EUR 11.1 million for the quarter;
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Strong new business wins in the quarter including two significant global mandates for Coca Cola and SABMiller;
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Merger integration proceeds according to plan, with revenue synergies contributing to net sales uplift;
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Market sentiment expected to further improve in 2011 – accelerating interest by clients in agencies that blend search, direct response, data and digital skill sets.
Luke Taylor, CEO of LBi, commented: “In 2010 we remained highly focused on executing our business strategy. The merger with search marketing specialist bigmouthmedia was a major milestone, which further strengthened our full service offering and firmly positions LBi as the number one marketing and technology agency in Europe. In addition, we added new social & mobile services into the hub markets, realised efficiency improvements and executed organisational change and incentive alignment throughout the group to better encourage cross-border knowledge sharing and cooperation.
In combination with a higher global demand for digital services, we were able to grow sales each quarter and improved our underlying operating performance, with especially the last quarter showing good progress. We seek to further capitalise on a positive industry outlook next year, as we notice an accelerating interest by clients in agencies that blend social, search, direct response, data and digital skill sets in order to most efficiently market their products and services.”
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
LBi’s head office:
LBi International N.V.
Joop Geesinkweg 209 | 1096 AV Amsterdam
Box 94829 | 1090 GV Amsterdam | 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 1,750 and operations in 15 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.
Attachments
LBi year-end report 2010 (pdf)
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