Digitalbox PLC (AIM:DBOX), the AIM-quoted owner of leading websites Entertainment Daily, The Daily Mash, The Tab and The Poke, managed to bolster its cash position and achieve EBITDA growth in 2022 despite a small revenue dip.
Group revenues of £3.6mln underperformed 2021 results by -2.4%, though underlying earnings did increase 5.1% to £1.08mln, just above expectations, due to improved margin control.
Audience levels in terms of sessions increased by 7% to 293mln while premium ad-free subscriptions on The Daily Mash hit 1,400 subscribers.
Entertainment Daily saw overall session visit growth of 17% year on year “despite Google algorithm changes causing some challenges”.
The company closed the year with a 43% stronger net cash position of £2.5mln, a strong sum given the group’s all-cash acquisition of satirical website The Poke in December.
Digitalbox credited its mobile-first strategic approach as the driver of audience engagement and monetisation.
Chief executive James Carter noted Digitalbox’s “solid performance in 2022, despite some challenging market conditions”, which served as “a testament to the agility and hard work of our teams enabling us to navigate a volatile trading environment”.
“We successfully delivered profitable growth and made significant progress in delivering our strategy of building a leading mobile-focused media business, developing an enlarged portfolio, attracting new audiences, and monetising them effectively,” said Carter.
Looking forward, the group expects mobile-first digital ad spend to increase from 65% currently to 70% in 2027. Global digital advertising spend is forecast to grow by more than 40% in the next four years.