Shares in digital advertising platform Dianomi PLC (AIM:DNM) dropped 9% after the company flagged a subdued start to 2025, citing macroeconomic pressures, soft advertiser budgets and traffic volatility.
Despite securing new publishing deals with CNN and the Associated Press and signing a partnership with Microsoft Monetise, the group expects first-half revenues to trail the same period last year. Investments in its sales function are also expected to weigh on short-term profits.
For 2024, revenue fell 7% to £28 million, though gross margin improved to 26.1%. Dianomi narrowed its adjusted EBITDA loss to £0.3 million and posted a modest statutory profit of £0.3 million.
Traffic rose 3.9% year on year, but average spend from top advertisers declined. The group maintained a strong balance sheet, ending the year with £8.8 million in cash and no debt.
Dianomi is mid-transition from native ads to a full-spectrum digital platform, with management confident this strategy will drive long-term growth.
The shares were changing hands for 30.96p, down 3.04p.