Digitalbox PLC (AIM:DBOX), owner of websites Entertainment Daily, The Daily Mash, The Tab and The Poke, said it expects underlying profits (EBITDA) for 2022 to be in line with recent guidance.
Although challenging economic headwinds across the entire media sector resulted in revenue for the calendar year being below market expectations, EBITDA will be “comfortably ahead” of the £1mln last year, the AIM-listed company said.
Management was focused on maximising margins within a tightening economy, said Digitalbox chief executive James Carter, highlighting the “agile approach to operating the business” that meant margins and EBITDA both grew year on year.
Gross cash also ended the year at £2.8mln, in line with the half-year stage and up from £2.2mln year-on-year.
“The end of 2022 was both an exciting and turbulent period,” Carter said in the trading update.
He noted that the acquisition of The Poke satirical website in early December saw the group continue to deliver on its strategy.
"The Poke provides a major opportunity for expansion in future years. After a pleasing start to life at Digitalbox, The Poke will quickly benefit from being brought onto our Graphene platform as we move into 2023," Carter added.
He said the acquisition of TVGuide.co.uk, which was agreed last May, is being finalised and is expected to be complete in the next few months.
“We are conscious of the difficult economic conditions, yet we are confident that our high-quality, popular brands will remain strong and quickly benefit as economic conditions improve,” Carter concluded.