Commentary

LadBible Owner Issues Second Profit Warning in Two Months as AI, Algorithm Changes Drain Web Traffic

Published on June 10, 2026

LBG Media, the Manchester-based digital publisher behind LadBible and Betches, has issued its second profit warning in less than two months, citing a sharp decline in search traffic driven by algorithm changes at Facebook and the growing adoption of AI-powered search tools.

As the Independent reports, shares in the company fell more than 40% in early Tuesday (June 9) trading before recovering to settle approximately 22% lower.

The publisher reported a 41% drop in indirect revenues, which include earnings from its own websites and social media revenue-sharing agreements, for the six months ending March 31. Pre-tax profits fell 79% to £1.8 million over the same period, while underlying earnings declined 34% to £8 million.

Direct revenues provided a partial offset, nearly doubling to £37.6 million during the period.

LBG Media now projects underlying annual earnings of between £15 million and £20 million, down from the £22 million forecast issued in April. The company also lowered its sales outlook to between £100 million and £107 million, compared with the £110 million guidance it provided two months ago.

Platform and Search Shifts

The results are a consequence of a broader pattern affecting digital media publishers. Facebook’s decision to deprioritize news links in its algorithm has reduced referral traffic, while Google’s AI Overviews feature now surfaces summarized answers at the top of search results, reducing click-throughs to publisher websites.

Chief Executive Solly Solomou said the company’s direct revenue strategy was making progress but that its indirect business had underperformed expectations. “Our indirect business was hit harder than expected,” Solomou said. “As a result, we have lowered our forecasts for 2025-26 and made changes to stabilize our web business.”

Solomou noted that the company was accelerating a shift toward more predictable direct revenues and reported growing engagement from large advertisers. “We are seeing an increasing share of wallet from large blue-chip clients, who see our relevant and engaging content on premium digital platforms as an effective way to reach young adults,” he said.