Brave Bison trades 'significantly below' expectations

Social video company Brave Bison expects to report a slightly narrowed underlying loss in 2019 despite forecasting a 23.8% drop in revenues.

Brave Bison told investors on Friday that it was on track to report a £700,000 EBITDA loss for the current year - significantly below market expectations.

The AIM-listed group, which anticipates revenues dropping from £21.0m to £16.0m, said its performance was driven by the continued impact of adapting to Facebook's new publishing policies and a second-half shortfall in its APAC branded content division.

In recognition of its over-reliance on Facebook and as part of the re-organisation of the business, Brave Bison said it had seen significant revenue growth in other platforms such as Snapchat and YouTube.

However, the more than 30% growth in non-Facebook sales during the year was not enough to offset the Facebook revenue decline, leading the group to review its cost base and make savings by restructuring its UK commercial and creative teams and close its studio facility.

Separately, Brave Bison revealed chairman Robin Miller had opted to stand down from the role, with effect from 31 December.

Miller said: "I have enjoyed my tenure as chairman, despite some of the challenges the company has faced.

"The business has great potential not yet reflected in the share price, but I am confident that under Kate Burns it soon will be."

As of 0900 GMT, Brave Bison shares had sunk 12.68% to 1.27p.