In two years, LLYC has doubled its EBITDA
In spite of uncertainties triggered by the war in Ukraine and its impact on the global economy, the audited figures for LLYC’s 2022 results revealed significant growth. Total revenues of the communications, digital marketing and public relations consultancy amounted to €89.5 million (+39% versus 2021) and operating income (totals less re-invoicing of client expenses) was €72.7 million (+36%). Recurring EBITDA (gross operating profit) improved by 26% to €16 million and consolidated net income rose by 30.6% to €7 million. The company has virtually doubled in size in two years in terms not only of total and operating revenues but also EBITDA (+90%).
“These solid results were made possible by the significant commercial efforts of all our teams and a solid customer base. Thanks to them, we once again met the goals set out in the business plan, in line with our commitment to our shareholders and to the market. The 2023 forecast includes double-digit improvements in turnover. We have a sturdy foundation for inorganic growth in key markets for the firm,” said Alejandro Romero, Global CEO of LLYC.
Strong growth of Deep Digital Business
The results reflect a balance between the business units. Europe contributed 36% of operating income and 43% of EBITDA in 2022; Americas, 32% and 30%, respectively. All the rest came from Deep Digital Business, the area that integrates all of the firm’s artificial intelligence, digital transformation and inbound marketing service lines and solutions, which posted tremendous growth.
Deep Digital Business already represents one third of LLYC’s business. Its services are in high demand and revenues increased by 98% in 2022. It is the key bet for the transformation of the firm’s proposal.
Sound financial position
LLYC carries a lower level of debt versus the market average and has the resources to meet the ambitious business plan set out in its budget for 2023. The financial debt/EBITDA ratio is -0.3 and gross debt was reduced to €8.9 million (-15% versus 2021).
Investment in Talent
LLYC strives to be a diverse, inclusive, equitable and multidisciplinary company. Driven by this growth, 2022 is set to be a big year for investment in talent. The firm has incorporated new profiles, which boost its technological and creative capabilities. Last year it closed with 1,127 professionals, compared to 966 in 2021 (+17%). Fifteen percent of the workforce was promoted to positions of greater responsibility (62% were women) and 637 people participated in the Challengers program, which promotes young talent. LLYC was recognized as the preferred communications consultancy to work for in Spain, according to the second edition of the BEST AGENCY TO WORK FOR 2022 ranking prepared by SCOPEN. It has also received the Great Place to Work certification at 12 of its operations, which accredits it as an excellent place to work at a global level.
In 2022, LLYC Venturing (group company focused on investing in early-stage technology-based communications startups) made its first two investments. The investment in June focused on Erudit, a Spanish startup with a presence in the United States that has developed technology to improve, through Artificial Intelligence and NLP (Natural Language Processing), the management of talent and the potential of teams, with machine learning models focused on the study of the personality of workers, their mental health and the work environment. The second investment in November concerned Digital Audience, a Dutch technology company with expertise in new digital marketing strategies.
Sustainability and governance
As part of its commitment to environmental conservation, LLYC has defined a series of guidelines and objectives for both the acquisition of goods and the contracting of services. With the adoption of these policies and their development, the company aims to participate in the mitigation of the environmental impact of its activity, also promoting the competitiveness and efficiency of the processes through the work in three lines of action: responsible purchasing; circular economy and sustainable office, which means practices that allow us to reduce our consumption.
In terms of governance, LLYC follows the recommendations of the Code of Good Governance, in its aim to incorporate the best practices of the continuous market. Women are in the majority on the board of directors and hold almost 46% of the executive positions (the figure increased last year from 74 to 81).
In 2022, Fundación LLYC supported 43 social entities through 8 projects that in total benefited more than 850 people in the 12 countries where the firm is present. For their part, 415 LLYC professionals volunteered 2,157 hours of their personal and work time to carry out these activities. Fundación LLYC channeled its efforts to contribute to the Sustainable Development Goals of “Quality Education” (SDG 4) through its Voces Futuras (Future Voices) project at a global level with young people at risk of exclusion; and “Women’s Equality (SDG 5) through a training and consulting project for organizations that work with women in vulnerable situations.
To learn more about the 2022 results, we invite you to the webcast scheduled for today at 5 p.m. CET. You can connect through the following link. Alejandro Romero, Partner and Global CEO of LLYC and Marta Guisasola, Partner and Global Chief Financial Officer (CFO) will analyze the main keys.