LLYC’s operating income up 14% to €83.1 MM in 2023

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At its last meeting, LLYC’s board of directors analyzed the 2023 results preview, which shows an increase in operating revenues of 14%, to 83.1 million euros, and a recurring EBITDA of 18.4 million euros, up 15%. It also approved the objectives for this year, with organic growth of 8% in revenue and operating income and the appointment of Francisco Sanchez-Rivas as the Board’s new Chair.

Preliminary results

LLYC achieved strong growth in business figures in 2023. The latest results preview shows that the firm’s revenue reached a record high of 83.1 million euros, marking a 14% increase from 2022 (72.7 million euros). Meanwhile, the firm’s recurring EBITDA grew by 15%, rising to 18.4 million euros.

LLYC’s performance in 2023 surpassed the objectives outlined in its strategic plan for the year. The firm’s organic growth led to an 8% increase in operating revenues and gross operating income. Inorganic growth, represented by the acquisition of BAM at the end of March, also contributed to the firm’s growth. LLYC’s proper management of expenses and structure resulted in a margin of 22%. In total, LLYC’s revenues (operating revenues plus the re-invoicing of customer expenses) reached 101.4 million euros, a 13% increase from the previous year’s (88.9 million euros).

LLYC’s 2023 results align with its 2023-25 business strategy. Furthermore, the company’s growth and EBITDA improvement ratios exceed international marketing and corporate affairs standards. LLYC’s Deep Digital services played a key role in achieving these results. The business unit, which includes digital marketing, performance and paid media, and digital transformation and artificial intelligence solutions, has grown by 21% in 2023. It now accounts for 34.5% of operating income and 28.1% of the firm’s recurring EBITDA.

To continue transforming its AI-powered offering, LLYC invested €1.3 million in R&D in 2023, a 62% increase from the previous year. This investment enabled the creation of a proprietary AI model for measuring reputation that exceeds the main market benchmarks by 20 accuracy points, according to the Complutense University of Madrid. LLYC’s AI model has already enabled the analysis of more than 850 million messages. Additionally, LLYC has launched AIgent, a generative artificial intelligence solution specialized in conversations about specific fields of knowledge.

“2023 was a crucial year for our firm, with a very positive outcome,” said Alejandro Romero, Partner and Global CEO at LLYC. “We met our revenue and EBITDA growth targets, became a significant player in the United States following the acquisition of BAM, and took a decisive step forward in technology. Innovation is a fundamental part of LLYC’s DNA. It is one of Jose Antonio Llorente’s greatest legacies. Therefore, we are restructuring to become more responsive to market needs and emerging technologies. This adaptation is an opportunity to add value to our customers and achieve our growth goals in the years ahead.”

Budget 2024

LLYC’s board of directors has approved the company’s budget for 2024. The new budget forecasts an 8% increase in operating income to 90 million euros and recurring EBITDA to 20 million euros. This growth target includes the contribution from the acquisitions planned for 2024 as LLYC continues to invest in its business strategy.

The company plans to invest €40 million between 2023 and 2025. The new budget aligns with the updated organizational model to better serve clients. The model focuses on two major practice areas, Marketing and Corporate Affairs, to offer integrated solutions. The goal is to establish a more efficient, agile, and global structure that assigns the most suitable talent to each project.

Notably, marketing is expected to account for 46% of revenues by the end of 2024, indicating significant growth potential in this practice.

New Chair

LLYC’s Board of Directors has appointed Francisco Sanchez-Rivas as its new Chair. Sanchez-Rivas joined the board in 2020 and has been actively involved in the company’s M&A strategy. He will continue to lead the strategy as Chair and be responsible for the relationship with institutional investors. Sanchez-Rivas has over 30 years of experience in investment banking, finance, and corporate strategy. He was a Director in the Corporate Finance department of Deloitte and then CEO of Edmond de Rothschild Corporate Finance for Spain and Portugal for almost ten years. In the last decade, he has directed several companies in the services, energy, agri-food, and technology sectors.

Sanchez-Rivas is a graduate of Universidad Complutense de Madrid, has an MBA from IESE Business School, an AMP (Advanced Management Program) from Harvard Business School, and a Postgraduate Degree in Financial Markets from the London School of Economics and Political Science. Francisco is married and has four daughters. He is currently studying for a degree in English Literature at Oxford and enjoys art and literature as hobbies.

LLYC’s Board of Directors appointed Alfonso Callejo as an independent member. Callejo is recognized as one of Spain’s top executives in talent management and human resources. He was Group Vice President of Human Resources for General Electric’s global Energy business until 2023. Previously, he was General Director of Corporate Resources of the Acciona Group, Regional Vice President of Human Resources in several PepsiCo businesses in Europe and Latin America, and Director of Human Resources of Procter & Gamble Portugal. Callejo was also President of the Spanish Association of Human Resources Directors. He holds a PhD in Spanish literature and is passionate about training and learning.