Digitalbox PLC (AIM:DBOX) reported higher revenue and profit in the first half of 2025 and said it remains on track to meet full-year expectations.
Revenue for the digital media group rose 12% to £1.8 million, more than it suggested in its last update, while adjusted EBITDA increased 30% to £0.3 million.
The number of page impressions from the group's websites, which include Entertainment Daily, Daily Mash and TV Guide, increased 15% year on year, while the group significantly increased its in on-platform monetisation income from content produced within Facebook, YouTube and TikTok. These social media revenues rose to £403k in the period, compared to £161k a year eaerlier.
Adjusted EBITDA rose 30% to £0.29 million, ahead of management expectations. Net cash stood at £1.6 million, versus £1.8 million a year earlier.
CEO James Carter said: "Our outperformance in the first half evidences our strong operating model and our agility - essential factors in navigating today's rapidly-evolving media landscape.
"This success is in part due to the increased diversification of our monetisation model, new products and the successful integration of acquisitions made in previous years."
Chairman Marcus Rich added: "This is a time of seismic change for media and it's very encouraging to see Digitalbox exceeding expectations in the first half of the year. The global ad market remains turbulent, and AI will create opportunities and challenges in equal measure."
City stockbroker Panmure Liberum repeated a 'buy' rating, and a 10p price target, which suggests more than 100% upside to the current price of 4.51p.
"Despite a difficult macro backdrop, the Verticals Strategy is performing – H1 revenues rose 12.0% YoY. Both revenue and EBITDA were ahead of our estimates," analyst Johnathan Barrett said.
Barratt added: "The stock has made some healthy progress since the FY results (+6.7%) and we expect further progress as the audience and revenue builds."