LLYC boosts EBITDA 32% through June
LLYC holds strong, solid and profitable growth despite the challenging macroeconomic environment. The communications, digital marketing and public relations firm posted total revenues of €43.6 million in the first half of the year, a year-on-year increase of 70%. Operating revenues (total revenues less re-invoicing of services to customers) rose 53% to €35.6 million. Recurring EBITDA (gross operating profit) improved by 32% to €8.1 million. Meanwhile, consolidated net profit grew by 25.1% to €3.84 million, according to the audited results sent to BME Growth. The firm is thus delivering on the objectives set out in its strategic plan. Turnover is already well above pre-pandemic levels.
In the words of José Antonio Llorente, Founding Partner and President of LLYC: “The results for the first half of the year are very positive, even more so in the current uncertain and turbulent environment. We have continued moving forward with our ambitious strategic plan, and have met our established objectives. The company holds a solid financial position. Thanks to the efforts of our professionals, we are in a strong position to face a more complex and challenging second half of the year”.
Balanced business units
First-half figures reveal a healthy balance across the three main business units. Europe accounted for 35% of operating income and 44% of EBITDA through June; the Americas, 33% and 34%, respectively. The remaining 32% and 22% came from Deep Digital Business, an area that integrates all of the firm’s artificial intelligence, digital transformation and inbound marketing service lines and solutions.
By region, Europe brought in 45% of operating revenues and 52% of EBITDA in the first half of the year; Northern Region (Mexico, Panama and the Dominican Republic, 24% and 15%, respectively); Andean Region (Colombia, Peru and Ecuador), 14% and 20%; Southern Region (Brazil, Argentina and Chile), 10% and 7%; and the United States, 6% of operating revenues and 7% of EBITDA.
The acquisitions made by LLYC last year already have a clear impact on the 2022 accounts. Up to June, Apache Digital and CHINA have accounted for 19% of revenues in Europe. BESO accounted for nearly half, 49%, of the turnover in the Northern Region (Mexico, Panama and the Dominican Republic). A breakdown of revenue growth shows that €11.4 million is inorganic (from the companies acquired in 2021), €5.6 million is organic growth and €1 million is the result of positive currency effects.
The growth in first-half earnings is in line with the 2022 targets approved by LLYC’s Board of Directors. The budget includes a 35% increase in total revenues, to €84.7 million. Operating income would amount to €66.2 million, a 24% increase. Recurring EBITDA would increase by 25% to €15.9 million.
– LLYC held its first General Shareholders’ Meeting in April, approving a dividend payment of 0.132 euros per share, which was subsequently executed on July 15.
– In June, the corporate venture company of the consulting firm made its first investment of €200,000 in Erudit, a Spanish startup also operating in the United States. Erudit has developed a technology that harnesses Artificial Intelligence and NLP to enhance talent management for companies and also the potential of their teams by tapping into machine learning models focused on the study of employee personalities, mental health and also the work environment.
– Consolidation of the DDB area, which represents a third of revenues.
– LLYC launched the Challengers Program to reinforce its young talent and accelerate their professional careers.
– The company hired 274 professionals between January and June (the total workforce closed the half-year at 1,100 people) and promotions totaled 98.
– In January, LLYC launched Executive, its management education unit geared to assist companies in adapting to the demands of the new digital economy.
– As of June, LLYC has won 45 awards in national and international competitions. These include Top Consultancy in Europe at the PR Week Global Awards 2022 and a Cannes Lions Silver Lion with its ‘Bihar, choose the future’ campaign for BBK.
For further details, check out the video we made of the H1 2022 results presentation. Speakers: José Antonio Llorente, Founding Partner and President of LLYC, and Marta Guisasola, Global Chief Financial Officer (CFO).