Thursday , October 27 , 2011

Progress reflects success of business model transformation and strategy execution

Amsterdam (the Netherlands), 27 October 2011 –
LBi International N.V. (NYSE Euronext symbol: LBI), Europe’s largest marketing and technology agency, today reports its third quarter results for the period ended 30 September 2011.

Key highlights

Q3 2011 net sales up 8.0% (11.8% at constant rates) versus Q3 2010 reflecting continued growth in all regions;
Q3 2011 adjusted EBITDA up 8.1% (13.5% at constant rates) to EUR 8.0 million vs. Q3 2010 (EUR 7.4 million); EBITDA margin at 16.5%;
Net income of EUR 4.4 million in Q3 2011 vs. a negative net income of EUR 5.8 million in Q3 2010;
Strong and healthy financial position with positive operating cash flow of EUR 8.9 million in Q3 2011;
New credit facility agreed with ABN AMRO Bank of EUR 70 million;
Continued increase of interest by clients (brands) in agencies that blend search, social, direct response, data and digital skill sets.

Luke Taylor, CEO of LBi commented: “The progress in the third quarter and year to date reflects the success of our business model transformation and strategy execution over the past years. In the third quarter, we saw continued growth and delivered a sound margin performance. Excluding currency effects, we once again achieved double digit revenue growth.

All markets appear to be performing resiliently within the current climate and at present we do not see any evidence that major clients are belt-tightening. The prevailing mood of caution is in some instances even accelerating an increase in digital business at the expense of traditional above the line (mass media) marketing budgets. Furthermore, certain service categories such as CRM, mobile and social marketing are seeing a significant surge in growth and we are actively scaling headcount in these areas.

Recent new business wins such as E.ON, Reebok and ASDA and a strengthening pipeline provide further cause for optimism. We continue to benefit from services, category and geographic consolidation as leading brands centralise digital, data and direct activities. Our outlook for the remainder of the year is positive and we expect to maintain momentum in the fourth quarter.”

Source and contact information: News


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