Shares in LADbible’s parent company plummeted on Tuesday after it said algorithm changes had resulted in a steep decline in Facebook advertising revenue and Google visibility.
Shares in LBG Media plc fell 34% as half-year profits were mostly wiped out despite a substantial increase in revenue.
Founder and CEO Solly Solomou said its indirect business – traffic and revenue away from direct visitors to its platforms – “was hit harder than expected”.
In April the company raised revenue guidance and lowered adjusted EBITDA guidance to £110 million and £22m respectively as a result of higher direct traffic growth and a continued decline in indirect revenues.
It now expects FY26 revenue of £100-107m and adjusted EBITDA in a range of £15-20m.
“The revised guidance reflects an anticipated further decline in web and social revenues within the indirect revenue stream, which has reduced visibility as part of a long-term structural shift away from websites towards social platforms and video content, and the continued impact of changes to the Facebook algorithm,” the firm stated.
“A number of mitigating actions have been taken across the Indirect business, including cost controls, new leadership and improvements to our processes and data-driven approach, including innovation with AI.
“We are starting to see the benefits of these changes. However, the low end of the EBITDA range cited above reflects a continuation of the current monthly trend. In the medium to long term, we continue to expect our higher visibility, higher-growth direct revenue streams to make up the largest share of group revenues.”
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For the six months ended 31 March 2026, group revenues were up 19% to £52.4m, with direct revenues growing 95% to £37.6m. However indirect revenues declined 41% to £14.5m. Direct revenues accounted for 72% of group revenues, up from 44% a year ago.
Profit before tax for the period was £1.8m, down 79% from £8.6m.
“Our 2026 financial year is a year of transition, towards long-term value,” said Solomou. “LBG Media’s planned shift to more predictable direct revenues with greater visibility on earnings is accelerating.
“We are seeing an increasing share of wallet from large blue-chip clients, who see our relevant and engaging content on premium digital platforms as an effective way to reach young adults.”