Digitalbox PLC (LON:DBOX) has said its performance in its current financial year to date has been “ahead of our initial expectations” following an improvement in its performance in the second half of 2020.
In an update on trading, the owner of the Daily Mash, Entertainment Daily and Tab websites said the latter is continuing its positive integration into the business following its acquisition in October, reaching profitability after just three months of ownership. The firm also highlighted audience growth across its portfolio with over 12mln monthly users.
The firm also confirmed that revenues and profits for the second half of the year to 31 December had been stronger than the first half, while for the full year it expects to report revenue of around £2.2mln, flat year-on-year, alongside adjusted earnings (EBITDA) of £0.3mln compared to £0.5mln in 2019. The company’s cash balance and the end of the year rose to £1.9mln from £1.2mln in 2019.
“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”, chief executive James Carter said in a statement.
“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”, he added.