LADbible-owner LBG Media PLC on Wednesday reported a widened half-year loss despite revenue growth, as costs increased significantly.

The Manchester-based digital media and youth content publisher posted a pretax loss of £1.9 million for the six months that ended June 30, swung from a profit of £5.6 million a year ago.

LBG Media shares fell 23% to 79.30 pence each in London on Wednesday morning. The stock is down 55% since its initial public offering back in December at 175p.

Revenue increased 7.8% to £24.8 million from £23.0 million. This was however more than offset by net operating expenses increasing by 53% to £26.6 million from £17.4 million.

Looking ahead, Chief Executive Officer Solly Solomou, praising a ‘solid performance in the first half’, commented: ‘We continue to focus on our growth strategy, excited by the potential of the US market, and assess merger & acquisition opportunities that are complementary to our existing offering. We remain confident in the long-term prospects for the business and significant growth potential for the future.’

The company added: ‘The global digital media market is forecast to grow at 15% this year, despite the current challenging economic environment. LBG Media operates within some of the fastest growing segments of the digital media market, including social video and mobile, and is therefore well placed to continue to increase its market share.

‘Our addressable market within our four core geographies of focus, being the United Kingdom, Australia, Ireland and the United States, continues to grow as we increase and diversify our content.’

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