Digitalbox trading well after integration of The Tab
Mobile-focussed digital media company Digitalbox updated the market on its trading on Thursday, confirming that the revenues and profits in the second half of 2020 were stronger than the first half.
The AIM-traded firm said it expected revenue for the year ended 31 December to be about £2.2m, in line with 2019, with adjusted EBITDA expected to be £0.3m, down from £0.5m.
Its net cash position at the end of January totalled £1.9m, up from £1.2m as at 30 June.
The board said the current financial year started “well”, with first quarter performance to-date ahead of its initial expectations.
It said its The Tab property continued its positive integration into the Digitalbox model, reaching profitability after three months of ownership, having been previously lossmaking.
Together with audience growth across the portfolio, Digitalbox said it now had a reach of more than 12 million monthly users.
“2020 will go down in history as one to be forgotten by many, but Digitalbox made significant and exciting progress through these challenging times,” said chief executive officer James Carter.
“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 started to institutionalise our shareholder register, strengthened our board and appointed Panmure Gordon as our nominated adviser and joint broker.”
Carter said 2021 had 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.”
Digitalbox said it would provide more detail at the time of its 2020 final audited results on 29 March.
At 1241 GMT, shares in Digitalbox were up 8% at 6.48p.