AMSTERDAM, the Netherlands / STOCKHOLM, Sweden - April 27, 2006. LB Icon AB (Euronext Amsterdam, OMX Stockholm: ICON) ("LB Icon" or the "Company"), the internationally active full-service company in Digital Marketing and Technology, today reported its first quarter 2006 results. Highlights are as follows:
HIGHLIGHTS FIRST QUARTER 2006
- Net sales for the first quarter up by 34% over the same period in 2005, organic growth more than 20%. - Strong EBITA performance of EUR 2.7 million, a healthy 10% of sales. - EBIT margin percentage improved from 6.7% in Q1 2005 to 8.6% in Q1 2006. - Sales per employee (annualized) up 19% to K EUR 136. - Lost Boys in the Netherlands wins Gold and Silver Spin Awards for their KPN Bling Bling and Sportlife Arctic Games solutions. - DAD ranked #1 web agency in Belgium and IconMedialab ranked #2 in Italy. - Convertible bond redeemed successfully in first quarter.
ROBERT PICKERING, CEO OF LB ICON ON BUSINESS PERFORMANCE AND OUTLOOK
"Quarter on quarter the positive impact of the increased demand in the market place shows. We continued to substantially increase our operating margins and expect to experience further margin growth in most of our geographic units. Greater demand, combined with LB Icon's strong focus on more efficient and effective delivery to its clients are reaching the bottom line. We have the capacity to deliver even stronger results without significant investment.
The announcement of the intended merger with Framfab only builds on the strong momentum we see in the market place. In Germany, the Netherlands and the UK, LB Icon is already taking advantage of client and market synergies particularly as it enhances margins.
LB Icon is consistently posting strong sales and has most importantly, shown substantial increases in its operating margins. We are confident that the demand for our services will continue to increase in 2006 and beyond. Our largest clients continue to invest a greater proportion of their marketing & communications budgets to digital media. We are growing our existing client relationships, improving margins and reducing sales costs, while adding other blue chip clients such as Centrica, DHL, Philips and others to our client base.
In summary, LB Icon is ideally positioned as the #1 digital agency in Europe - in sales, client base, people and our network of offices in Europe and the US. We will look to exceed on previous achievements in both 2006 and 2007 by continuing to challenge our management team to excel in what we do for our worldwide clients."
The full report can be downloaded from the attachment.