H1 2023 results show the United States is now LLYC’s third-largest market

LLYC’s (BME:LLYC) H1 FY23 results preview shows that the United States has become the company’s third-largest market in terms of volume, behind only Spain and Mexico. This follows LLYC’s March acquisition of San Diego-based BAM by LLYC, which specializes in providing PR and marketing services to venture-backed startups and tech companies. The report showed that LLYC USA accounted for 9% of operating revenue and 10% of recurring EBITDA, as well as 7% of total revenue and 8% of gross income.

The company also showed promising global outcomes in its results preview, reaching €39.9 million in operating revenue (+12% YOY), pending the audited final report. Total revenue grew 12% to €48.7 million, while recurring EBITDA rose 9% to €8.8 million. The company’s performance for the first half of the year met the forecasted budget, and by the end of June, LLYC had achieved 50% of its revenue and EBITDA goals for the entire year.

“We are pleased with these outcomes, which were positive despite the complex global context,” shared Alejandro Romero, Partner and Global CEO at LLYC. “We’ve seen a significant upswing in our numbers since Q2, and our digital and marketing solutions, as well as our focus on healthcare, give us every reason to remain optimistic about our future prospects. With LLYC’s strength, diversification, and client trust, plus the commitment of our team of nearly 1,200 professionals, I know we will achieve our 2023 goals. It will be another year of double-digit growth.”

The company’s organic revenue growth was 8% — higher than what other communication companies reported. This was mainly due to volume growth in Madrid, Sao Paulo, and Mexico.

Other results by unit and region

LLYC’s other business units account for the following: 

– Deep Digital: 34% of operating revenue and 26% of recurring EBITDA.
– Europe: 34% of operating revenue and 40% of recurring EBITDA during H1. 
– Latin America: 25% of operating revenue and 26% of recurring EBITDA. 
Other regions showed the following H1 results: 
– Europe (Spain and Portugal) accounted for 44% and 49%, respectively; 

– the North region (Mexico, Panama, and the Dominican Republic) accounted for 26% and 21%;
– the Andean region (Colombia, Peru, and Ecuador) accounted for 11% for both metrics; 
– and the South region (Brazil, Argentina, and Chile) accounted for 10% and 9%.

Deep Digital’s robust growth

Deep Digital, which encompasses digital marketing (creative, performance, and paid media), digital intelligence, and transformation solutions, has continued to grow both organically and through the acquisition of audio agency Voikers. Deep Digital’s contribution to the firm’s total revenue shows an upward trend. Overall, it increased its income by 25% in H1 FY23. This business unit is one of LLYC’s 2023 Strategic Plan’s most important assets.