Digitalbox Posts "Admirable" First Half Numbers After Acquisitions

(Alliance News) - Digitalbox PLC on Tuesday reported a first revenue but a widened loss in its first set of results since completing two acquisitions.

In the six months to June 30, the digital media business generated revenue of GBP712,000, after reporting no revenue in the first half of 2018. Pretax loss widened to GBP713,000 from GBP177,000, with administrative expenses soaring to GBP1.1 million from GBP204,000.

The company, which started the period as Polemos PLC, a suspended cash shell, acquired Digitalbox Publishing Holdings Ltd for GBP10.0 million in February and Mashed Productions Ltd for GBP1.2 million in March.

The firm operates two brands, Entertainment Daily, which it acquired after purchasing Digitalbox Publishing and satirical website The Daily Mash, once part of Mashed Productions.

Entertainment Daily posted an interim revenue of GBP625,000. By the end of the first half, the publication, which covers UK celebrity and entertainment news, had 3.1 million unique users per month, up 50% from 2.1 million at the start of the period.

Mashed Productions reported first half revenue of GBP75,000. Daily Mash finished the first half with 1.8 million monthly website users generating 3.6 million monthly website visits.

Digitalbox forecasts a stronger second half, expecting final quarter trading to be particularly positive.

Chair Robin Miller said: "These are an admirable set of results demonstrating very encouraging audience growth and enviable control of costs resulting in strong margin performance. The focus on mobile makes the company ideally placed to take advantage of the continued acceleration in digital advertising via programmatic.

"The integration of our first acquisition The Daily Mash has been accomplished much as anticipated and with Entertainment Daily we have two strong brands with considerable potential giving us great confidence for the year ahead."

Shares in Digitalbox were 1.2% higher at 6.20 pence each in London on Tuesday morning.

By Eric Cunha; ericcunha@alliancenews.com

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