Last checked at 25 Feb 2021 07:00
25 February 2021
Digitalbox plc
("Digitalbox" or the "Company")
Pre-Close Trading Update
Digitalbox plc (AIM: DBOX), the mobile-first digital media business, which owns Entertainment Daily, The Daily Mash and The Tab, is pleased to provide the following trading update.
As previously announced on 3 December, the Group can confirm that the revenues and profits in the second half of year ended 31 December 2020 ("FY2020") were stronger than the first half. The Company expects revenue for FY2020 to be approximately £2.2 million (FY2019: £2.2 million) and adjusted EBITDA to be approximately £0.3 million (FY2019: £0.5 million). The Company's net cash position at the end of January 2021 was £1.9 million (30 June 2020: £1.2 million).
The current financial year has started well with Q1 2021 to-date performing ahead of our initial expectations. The Tab continues its positive integration into the Digitalbox model reaching profitability (previously loss making) after three months of ownership; together with audience growth across the portfolio, Digitalbox now has a reach of more than 12 million monthly users.
James Carter, CEO said: "2020 will go down in history as one to be forgotten by many, but Digitalbox made significant and exciting progress through these challenging times. We continued to execute our buy and build strategy within complementary content verticals and the acquisition of the Tab, brought in a new cornerstone investor in the form of Downing LLP as we start to institutionalise our shareholder register, strengthened our Board and appointed Panmure Gordon as our Nominated Adviser and Joint Broker.
2021 has started positively with the integration of The Tab onto the Company's proprietary tech platform (Graphene) progressing well, having helped take a loss-making business into profit within a three-month window.
With the refreshed Board and strong current cash balance, the Company is confident that the broad economic conditions expected in 2021 will create opportunities to continue its buy and build strategy within complementary content verticals as digital mobile advertising revenues grow ahead of other sectors."
More detail will be provided when the Company announces its FY2020 Final Audited Results on 29 March 2021.
Adjusted EBITDA is Operating Profit before the deduction of depreciation, amortisation, share based payments and acquisition and listing costs.
END
Market abuse regulation: This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
Enquiries:
Digitalbox | c/o SEC Newgate |
James Carter, CEO | |
Panmure Gordon (Nominated Adviser, Financial Adviser & Joint Broker) | Tel: 020 7886 2500 |
Alina Vaskina / Sandy Clark (Corporate Advisory) | |
Erik Anderson / Rupert Dearden (Corporate Broking) | |
Alvarium Capital Partners (Joint Broker) | Tel: 020 7195 1400 |
Alex Davies / Hugh Kingsmill Moore | |
SEC Newgate (Financial PR) | Tel: 020 3757 6880 |
Robin Tozer / Isabelle Smurfit | digitalbox@secnewgate.co.uk |
About Digitalbox plc
Based in Bath, UK, Digitalbox is a 'pure-play' digital media business with the aim of profitable publishing at scale on mobile platforms.
Digitalbox operates three trading brands, "Entertainment Daily", "The Tab" and "The Daily Mash". 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.
Digitalbox generates revenue from the sale of advertising in and around the content it publishes. The Group's optimisation for mobile enables it to achieve revenues per session significantly ahead of market norms for publishers on mobile.