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Cable Technology Feature Article

May 03, 2010

LBi's Revenue Growth and Margin Improve

By Calvin Azuri, TMCnet Contributor

LBi's revenue growth and margin improves strongly due to the positive momentum in U.S. and U.K. markets. When going through the first quarter highlights, it can be identified that the net sales are up by 6.1 percent to EUR 36.5 million. This reflects the continuation of strong progress at both commercial and operational levels across the US and the U.K., with markets in continental Europe being more uncertain.

Adjusted EBITDA, excluding reorganization charges associated to headcount and property rationalization, is increased by 24.4 percent to EUR 4.5 million which reflects an improvement of adjusted EBITDA margin to 12.4 percent.

Central and Southern Europe remains more hesitant while the German and Nordic markets showed rebound. Netherlands is performing well. The LBi are confident about a good stable growth throughout 2010.

LBi shareholders gave the approval for merging with Obtineo. This will result in the creation of the largest marketing and technology agency in Europe.

Luke Taylor, the CEO of LBi, said, "This is a good first quarter for 2010 with year-on-year revenues and EBITDA growing by 6.1 percent and 24.4 percent respectively at constant rates.

In the quarter, we saw significant year-on-year growth in key U.K. and U.S. markets, both for topline and EBITDA. The revenue growth in the U.K. and U.S. came in at 14 percent and 25 percent respectively at constant rates. Furthermore U.K. EBITDA adjusted increased by 32 percent and US EBITDA adjusted increased by 38 percent at constant rates compared to the first quarter of 2009. The improvements demonstrate the success of our service extension strategy. Performance in Central & Southern Europe remains more tentative. Revenues for the region were down 8 percent at constant rates."

"Clients have responded very positively to the recent merger with Obtineo and the consequent ability to deliver best in class search engine marketing into all our key markets. The future funds to be provided by Obtineo and the intended rights issue give us the opportunity to strengthen our leading position in online marketing and technology services and enable us to accelerate our growth strategy." Luke added.

LBi provides the complete range of digital capabilities such as digital strategy, branded content, service design, media, CRM, technology, managed hosting and support services.

Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin's articles, please visit his columnist page.

Edited by Erin Harrison