Digitalbox PLC (AIM:DBOX) said it expects advertising markets to bounce back in 2024 after it battled to retain profitability last year in the face of challenging market conditions.
The mobile-first web publisher, which owns Entertainment Daily, The Daily Mash, The Poke, The Tab and TV Guide websites, generated £2.8 million of revenue in 2023, compared to £3.6 million the year before.
Gross profit of £2.2 million was made, down from £3 million, while underlying earnings (EBITDA) came in at £20,000 versus £1.1 million a year earlier. At the statutory level a £6.7 million loss was reported, compared to a £45,000 profit last time.
Net cash stood at £1.67 million at the end of December, with £193,000 generated from operations.
"Digitalbox traded profitably and generated £193k in operating cash in 2023, while experiencing some very challenging market conditions,” said CEO James Carter.
“Despite these conditions, it is a testament to the agility and hard work of our teams that enabled us to further scale the Digitalbox portfolio to five operational brands.”
He said Google owner Alphabet and Facebook and Instagram owner Meta “created some obstacles that we overcame during the year, and we expect further algorithm changes – most notably from Google in the spring of 2024 – to affect all publishers.
“However, the knowledge we developed navigating the platforms in 2023 will further equip us for all we expect to face in the current year.”
Now serving a range of consumers from students to older generations, he said the company has “built a position of significant strength in the entertainment market” and “will look to build an expanded level of services to further tap into the evolving on-demand behaviours too”.
Further acquisitions are sought, he said, which fit the group model and can offer a quick return on investment (ROI).
“With a strong track record of achieving a relatively quick ROI, we expect the general market conditions in 2024 to present further opportunities,” Carner said.
“Current trading remains in line with market expectations, our expanded portfolio is primed for future growth and we will continue to investigate both bolt-on and organic growth opportunities."