RE: Results26 Mar 2024 12:08
Comment from the broker this morning, where the shares trade on a fwd (next year) PER of 7 based on what appear to be conservative numbers.
2023 was an incredibly tough year in online B2C media. The macro weakness combined with platform volatility impacted publishers hard. DBOX didn’t take it lying down, it adapted to the platform hit via expansion of the social follower base
and drove session values. This resulted in delivering a modest profit and the business has seen a marked improvement in activity. With TV Guide also integrated successfully and contributing we expect to see a significant profit recovery even in a stable market. We flagged the upside risk to estimates in our January note and lift our EBITDA expectation for 2024 by 44%, albeit from a low base. We expect any improvement in UK macro to feed through and drive additional margin expansion.
Management continues to prove they can adapt and progress portfolio development in the toughest of environments. Beyond 2024 we expect a macro improvement and continuation of the optimisation of the portfolio to drive profitability. The shares should continue to recover as DBOX executes on the growth in mobile advertising opportunity.