Dianomi PLC (AIM:DNM), the native digital advertising group, dropped 6% as it warned spending had slowed in the first half of the year, with fewer advertisers on its platform compared to a year ago.
Revenue for the first six months of the year was similar to the comparative period last year, though gross margin was impacted by the publisher mix.
A greater proportion of revenue came from lower-margin publishers resulting in a gross margin of around 26%.
Profits fell but cost-cutting meant it stayed profitable.
Cash on June 2024 stood at £8.1 million (31 December 2023: £7.7 million).
On the publisher side, the group, which has a partnership with Dow Jones, expects the US election in November will boost traffic and monetisation opportunities.
Even so, Dianomi said the second half will require closing new contracts with both publishers and advertisers to deliver growth expectations.
Rupert Hodson, chief executive, commented: "Following a challenging 2023, this year our markets have stabilised albeit a level of caution remains.
“That said, we are attracting the interest of leading global publisher brands and our new pipeline of prospects is extremely encouraging.
“Whether we can monetise this potential fully in 2024 remains to be seen but our longer-term market position is strong."