Digitalbox sees traffic growth as the coronavirus outbreak changes people’s lifestyles

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What it does

Digitalbox PLC (LON:DBOX) is a pure-play digital media business, owner of two brands.

Entertainment Daily covers all the latest TV shows, soaps and celebrity gossip in the UK entertainment news space. It targets a 30+, 90% female audience.

The Daily Mash is the UK’s leading satirical website, providing a unique take on news, politics, sport, arts & entertainment and lifestyle issues since 2007. It has a spin-off TV show, The Mash Report, airing on BBC2.

In October it acquired Tab Media, owner of The Tab, a national website and 32 sub-sites individually focused on UK universities, for £750,000.

 

How it is doing

In October Digitalbox raised £1.2mln from a direct subscription by the Downing Strategic Micro-Cap Investment Trust at 4.9p a share to help fund The Tab acquisition.

For the six months to June 30, 2020, the firm reported a pre-tax loss of £102,000, narrowed from a £713,000 loss in the prior year, while revenues climbed by 38% to £1mln.

Growth in website traffic and revenues in the first quarter of its current year offset the impact of the coronavirus pandemic in the second quarter, with the Daily Mash in particular, seeing record traffic during lockdown as UK users spent more time online.

Mitigation measures had offset the revenue shortfall and protected its margins, while there are early signs of ad revenues recovering in the third quarter.

 

What the boss says: James Carter, chief executive

“The Tab provides a really exciting addition to our portfolio.”

“As well as providing insights into youth and student culture, it is an important training ground for journalists.”

“Since we acquired The Daily Mash in 2019, we have grown traffic and revenue whilst allowing the editorial team to get on with what they do best, and we aim to do the same with the Tab.”

 

Video

 

Inflexion points

  • Traffic growth as the lockdown continues
  • The Tab joins the portfolio
  • Ad revenues to recover

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