Digitalbox PLC (LON:DBOX) has said the coronavirus pandemic may bring “opportunity” for its business which it said will be “well placed to exploit” over the year.
In an outlook statement accompanying its full-year results, the owner of the Entertainment Daily and The Daily Mash websites said the pandemic had caused changes in people’s lifestyles which “may provide more opportunity for audience engagement”, although it warned that the advertising market “is [also] going to become much tougher”.
READ: Digitalbox full-year results were “in line with guidance”
“Our business is naturally second-half weighted and this may become more pronounced given the likely impact of [coronavirus on the first half]. We nevertheless remain confident that the Group can perform well in the year ahead”, Digitalbox said.
For the year ended December 31, 2019, the company reported adjusted earnings (EBITDA) of £525,000, swinging from a £354,000 loss in 2018, while it also reported revenues of £2.24mln.
The group also said trading in the first quarter of 2020 was “ahead of expectations” while its Daily Mash website hit a record level of 1.9mln visits in the first week of the UK’s coronavirus lockdown.
Despite the pandemic, Digitalbox chief executive James Carter said the company’s strategy remained “unchanged” and it remained focused on delivering its acquisition strategy.
“The successful integration of the Daily Mash proves the potential of our model and gives us confidence in our ability to build a portfolio of successful, profitable digital brands. We therefore remain focused on delivering our acquisition strategy and firmly believe the market is rich with opportunity as many publishers are struggling to keep pace with the shift in consumer and advertiser behaviour towards mobile”, he added.
The CEO also said the firm had £1mln of cash in the bank to help pursue any future opportunities.
Shares in the firm were steady at 5.5p in early trading on Thursday.
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