Digitalbox PLC Trading Update (9657M)
19 Septembre 2023 - 5:14PM
UK Regulatory
TIDMDBOX
RNS Number : 9657M
Digitalbox PLC
19 September 2023
19 September 2023
Digitalbox plc
("Digitalbox", the "Group" or the "Company")
Trading Update
Digitalbox plc, the mobile-first digital media business, which
owns leading websites Entertainment Daily, The Daily Mash, The Tab
and The Poke today announces a trading update ahead of the
publication of its unaudited results for the six months to June
2023 ("H1 2023") which are due to be announced on 26 September
2023.
For H1 2023, the Group will report revenue of GBP1.2m
(unaudited) and net cash of GBP2.3 million (as at 30 June
2023).
While the Company has traded ahead of the Board's expectations
in H1 2023, it has seen traffic sourcing to its sites in the first
months of H2 2023 continue to be impacted by a previously
communicated and well-documented trend that many publishers are
seeing.
This trend is for lower traffic volumes from the major platform
sources Alphabet and Meta to third party sites. Macro-economic
pressure on these key players means they have had to increase
consumer engagement time on their own platforms to improve their
results, which has reduced traffic sent to third-party publishers
like Digitalbox.
Furthermore, Digitalbox has seen a block within Google Discover
cutting traffic to the Group's leading brand Entertainment Daily,
and an imposed reach reduction on a leading Facebook page for The
Tab. While traffic volumes have been disappointing, session values
have traded materially ahead of the market.
There remains uncertainty as to the degree to which traffic from
the major platform sources may recover in H2 2023, but the Board
expects full-year revenue for 2023 to be approximately GBP2.8m and
the Company to remain profitable at adjusted EBITDA* level.
To combat this emerging trend, the Company has been planning an
on-platform pivot fuelled by AI-assisted video output creation to
increase audience engagement for its brands. This new approach has
been combined with the acquisition of the Social Chain assets in
August. This acquisition has increased the Group's followers on
social media from 8m to over 20m. This expansion provides a
significant opportunity for the Group to gain revenue in 2024 when
the digital ad market is expected to recover as the Company becomes
less reliant on taking audiences off the major platforms.
Adjusted EBITDA, defined as the profit from operations after
deducting depreciation, amortisation, share-based payments,
acquisition and listing costs, direct costs associated with
business combinations and capital restructure costs.
Market abuse regulation: This announcement contains inside
information for the purposes of Article 7 of Regulation (EU) No
596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR"). The person
responsible for arranging for the release of this announcement on
behalf of the Company is James Carter, Chief Executive Officer.
Enquiries:
Digitalbox c/o SEC Newgate
James Carter, CEO
Panmure Gordon Tel: 020 7886 2500
(Nominated Adviser, Financial Adviser
& Joint Broker )
James Sinclair-Ford / Ivo Macdonald (Corporate
Advisory)
Rupert Dearden (Corporate Broking)
Leander Capital Partners (Joint Broker) Tel: 020 7195 1400
Alex Davies
SEC Newgate (Financial Communications) Tel: 07970 664807
Robin Tozer / Mol l y Gretton digitalbox@secnewgate.co.uk
About Digitalbox plc
Based in the UK, Digitalbox is a 'pure-play' digital media
business with the aim of profitable publishing at scale on mobile
platforms.
Digitalbox operates the trading brands of "Entertainment Daily",
"The Daily Mash", "The Tab", and "The Poke".
Entertainment Daily produces and publishes online UK
entertainment news covering TV, showbiz and celebrity news. The
Daily Mash produces and publishes satirical news content. The Tab
is the UK's biggest youth culture site fuelled by students. The
Poke expertly curates and editorialises the funniest content from
around the web and social media.
Digitalbox primarily generates revenue from the sale of
advertising in and around the content it publishes. The Company's
optimisation for mobile enables it to achieve revenues per session
significantly ahead of market norms for publishers on mobile.
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END
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September 19, 2023 11:14 ET (15:14 GMT)
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