Digitalbox shares soar on first trading update since flotation
Digitalbox, the London-listed digital media business, saw its shares jump more than 12 per cent after the firm reported its first set of results since floating on the stock market in February this year.
The company which owns the Entertainment Daily and Daily Mash websites, said the performance of Entertainment Daily during the Period was ahead of market expectations.
Strong advertising and audience growth in the fourth quarter helped to deliver an underlying earnings before tax and other deductions of £433,000 and revenue of £1,988,533 for the period.
Entertainment Daily produces and publishes online UK entertainment news covering TV shows, showbiz and celebrity news. Revenue is generated from the sale of advertising slots in and around the content it publishes.
Following the admission of the company to the Alternative Investment Market on the London Stock Exchange on 28 February 2019, trading has been in line with management expectations, it said.
During the first quarter of 2019, Entertainment Daily's audience and revenue have continued to be strong.
Following the completion of the acquisition of the Daily Mash on 5 March 2019, the company has been integrating the Digitalbox ad stack into its operations.
The firm said its Board is confident that, once fully integrated, this will deliver improved results. Furthermore, the Daily Mash's affiliate BBC2 show, The Mash Report, has been nominated for the prestigious BAFTA Awards.
"The performance of Entertainment Daily reinforces our belief that our focus on optimisation for mobile enables us to achieve revenues per session significantly ahead of the market norms for mobile publishers”, said James Carter, CEO, Digitalbox.
“Mobile is the device of choice to access the internet with advertising revenues increasingly following this trend.
"Furthermore, the assimilation of the Daily Mash onto our platform will demonstrate our ability to integrate acquisitions quickly and effectively.
“We are looking at a pipeline of acquisition opportunities from the digital assets of traditional publishers to pure play digital businesses.
“We will pursue those that can be purchased, optimised and leveraged to create accretive growth for shareholders to achieve our goal of creating a market-leading, mobile-first digital business."
Digitalbox' shares were up 12.7 per cent at 7.75p.