MADRID, Sept. 21, 2023 - LLYC (BME: LLYC) recorded a double-digit net income growth of 13.4% YoY, earning €4.5 million in the first half of 2023. The communications, digital marketing, and public affairs consulting firm earned €4.5 million in the first half, up 13.4% compared to 1H 2022. The audited results confirmed a 12% increase in operating and total revenues (€39.9 million and €48.7 million, respectively) and a 9% improvement in recurring EBITDA (gross operating profit) to €8.8 million.
These figures show the company has achieved 50% of its estimated revenue and EBITDA for 2023. Growth in 1H was driven by Deep Digital's sustained momentum and the acquisition of BAM by LLYC, which made the US the firm's third-largest market in terms of volume.
LLYC reported 8% organic revenue growth, driven by high-impact operations in Madrid, Sao Paulo, and Mexico. The company also maintains a solid balance sheet and financial profile.
"Our company is expected to experience double-digit growth in 2023, despite the challenges of the current environment," said Alejandro Romero, Partner and Global CEO at LLYC. "The first half of the year has brought us great news, like the acquisition of BAM by LLYC in San Diego, tripling our size in the US, and the momentum of the Deep Digital unit. I am delighted with our strong and diverse company, and we will continue prioritizing innovation and creativity to transform our business model. Our objective is to serve as a leading firm that supports the growth of our clients and professionals."
Deep Digital: fueling growth
Encompassing digital marketing services such as creative, performance, and paid media, as well as digital transformation and intelligence solutions, LLYC's business unit Deep Digital achieved a 25% revenue increase, and its contribution to the firm's overall results is growing steadily. Currently, it accounts for 34% of operating revenues and 26% of recurring EBITDA.
The balance of the rest of LLYC's business units is as follows: Europe accounts for 34% of operating revenue and 40% of recurring EBITDA during 1H 2023; Latin America, 25% and 26% respectively; and the United States, 7% of revenue and 8% of gross operating income.
If we distribute these results by region, Europe (Spain and Portugal) accounts for 44% of operating revenue and 49% of recurrent EBITDA; Northern region (Mexico, Panama, and Dominican Republic), 26% and 21% respectively; Andean region (Colombia, Peru and Ecuador), 11% in both variables; United States, 9% of operating revenues and 10% of recurrent EBITDA; and South (Brazil, Argentina, and Chile), 10% and 9%.
Key drivers: technology, talent, and creativity
LLYC is committed to advancing its capabilities in emerging exponential technologies and AI, as well as attracting/retaining talent, with a yearly investment of €1 million. The firm has 1,175 professionals (+4.3%) globally as of June 30, with 63% women. In 1H, 95 employees were promoted, and 639 young consultants participated in the Challengers Program to accelerate their careers.
In the first half of this year, LLYC firm was recognized as the most outstanding Spanish consultancy firm in global rankings by PRWeek and PRovoke. Also, its digital marketing agency, BESO by LLYC, was named the number one agency in Mexico by Merca 2.0 magazine and earned the prestigious title of "Best of the Best." Meanwhile, Apache by LLYC became a Google Premier Partner, the highest certification of the technological giant that only 3% of affiliated companies receive.
The agency has won many national and international awards for the creative campaigns developed for its clients. In June, El Sol 2023 awarded "Piensa menos" (Think less) by CHINA for Adolfo Domínguez and "Kolapso" by the Consumer Engagement team of Madrid for Fundación BBK. Another successful initiative is "Sopa de Señas" by Beso by LLYC for La Moderna, which has won awards at El Ojo and the CLIO Awards. "THD, The Hidden Drug" has won at the IPRA and Impacte Awards.
LLYC's commitment to society
LLYC is taking steps towards sustainability by focusing on circular economy, sustainable offices, and responsible purchasing. Earlier this year, the firm launched its Carbon Footprint project using the GreenMko tool.
The LLYC Foundation helped 231 vulnerable young people in countries where the company is present during the first half of this year thanks to the dedication of 91 professionals and volunteers, who contributed over 400 hours to various projects.
Additionally, LLYC launched a project to obtain Refinitiv and Clarity ESG ratings to improve ESG management.
