Digitalbox PLC (LON:DBOX) has reported sharply reduced losses in its first half after the media group said its performance had exceeded its expectations despite “difficult conditions”.
For the six months to June 30, 2020, the owner of the Daily Mash and Entertainment Daily websites reported a pre-tax loss of £102,000, narrowed from a £713,000 loss in the prior year, while revenues climbed by 38% to £1mln.
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The company said growth in website traffic and revenues in the first quarter of its current year had offset the impact of the coronavirus pandemic in the second quarter, with the Daily Mash, in particular, seeing record traffic during lockdown as UK users spent more time online. Digitalbox also highlighted record viewing figures for The Mash Report, the Daily Mash’s satirical TV show aired on the BBC.
Looking ahead, the company said mitigation measures had offset the revenue shortfall and protected its margins, while there are early signs of ad revenues recovering in the third quarter.
The firm also said while uncertainty remained it was “cautiously optimistic” that the positive early signs of recovery in the advertising market will continue to benefit revenues in the second half, traditionally its strongest trading period.
"We have exceeded our expectations in challenging conditions, clear evidence of a resilient operating model and nimble leadership”, Digitalbox chairman Robin Miller said in a statement.
“The economic impact of coronavirus and its uncertainty going forward make it impossible to forecast with any accuracy how the remainder of the year will play out. But the advertising market is beginning to show tentative signs of recovery and we are confident the Digitalbox approach will continue to serve us well", the chairman added.
