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3 Dec 2020 07:00
This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
3 December 2020
Digitalbox plc
("Digitalbox" or "the Company")
Trading Update
Digitalbox plc (AIM: DBOX), the mobile-first digital media business, which owns Entertainment Daily, The Daily Mash and The Tab, announces an update regarding trading and its 2020 full year expectations.
Due to COVID-19, trading across the year has been unpredictable. However, after a difficult Q2 the digital advertising market strengthened towards the end of Q3, translating into much better than predicted session values being delivered on the Company's biggest brand, Entertainment Daily. This continued during August and September, helping to mitigate the impact of a market-wide algorithm change that negatively impacted social media traffic in the lead up to the 2020 US elections. With the audience model working well prior to this change, traffic volumes started a recovery in October and November. The algorithm change influenced the half year volumes for traffic most significantly on Entertainment Daily.
Although traffic levels are now increasing month on month, the quarter is not now expected to be sufficiently strong to enable the Company to meet current market expectations for revenue and profits. Nevertheless, revenues and profits in the second half will be stronger than the first and the Company still expects to be profitable and cash generative for the year as a whole.
The Company is pleased to report that the integration into Digitalbox's operating model of the leading student and youth media brand The Tab which was acquired on 1 October 2020 is progressing well, and that revenues in October and November have been ahead of initial expectations. Entertainment Daily traffic continues to see traffic return via social sources and has more than doubled its Google traffic in 2020. The Daily Mash continues to show stability.
The Company has net cash of £1.1m and remains in a strong position to benefit as the ad market recovers into 2021 with increased digital advertising spend through mobile devices.
Enquiries:
Digitalbox | c/o Newgate Communications |
James Carter, CEO | |
WH Ireland (Nominated Adviser & Joint Broker) | Tel: 0117 945 3470 |
Mike Coe / Chris Savidge | |
Panmure Gordon (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 | |
Newgate Communications | Tel: 020 3757 6880 |
Robin Tozer / Isabelle Smurfit (Financial PR) | digitalbox@newgatecomms.com |
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.
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