Digitalbox PLC – DBOX – Final Results

Digitalbox PLC – DBOX – Final Results

Digitalbox plc, the mobile-first digital media business, which owns leading websites Entertainment Daily, The Daily Mash, and The Tab, is pleased to announce its final audited results for the year ended 31 December 2020.

 

Financial Highlights[1]:

·      Revenue of £2.2m (2019: £2.2m)

·      Gross profit of £1.7m (2019: £1.8m)

·      Gross margin of 76% (2019: 82%)

·      Adjusted EBITDA[2] of £0.3m (2019: £0.5m)

·      Adjusted EBITDA margin of 13.9% (2019: 23.4%)

·      Adjusted EBITDA per share of 0.3p (2019: 0.7p)

·      Loss before tax of £143k (2019: loss of £460k)

·      Gross cash of £1.9m as at 31 December 2020 (31 December 2019: £0.5m) including £500k of Government-backed Covid loans[3]

 

Operational Highlights:

·    Encouraging progress across the portfolio despite challenging market conditions. Users[4] who visited Digitalbox's websites are up 76% to 67 million (2019: 38 million)

·     Completed acquisition of The Tab in October 2020 - Q4 traffic up 42% year on year.

·     Digitalbox's Graphene platform underpins The Tab's shift from operating loss to a positive contribution

·    88% of users are via mobile devices in line with Group strategy of building a leading mobile-focused media business.

·   After a difficult third quarter due to disruptive social media algorithm changes designed to counter COVID-19 disinformation, Group audience figures recovered to 12 million monthly users in December 2020, with more than 250 million ad impressions.

·     In 2020, Entertainment Daily saw 112% growth in Google/Direct traffic, and The Daily Mash had 14% growth in visits per user.

·    Former Chief Executive of TI Media, Marcus Rich appointed Non-executive Chairman in February 2021, post year-end.

 

Outlook:

·    Acquisitions of The Daily Mash and The Tab have proved the potential of the Digitalbox operating model and its Graphene platform, giving continued confidence in the Group's ability to build a larger portfolio of successful, profitable digital brands.

·   We are evaluating potential targets and, with a strong balance sheet, have the flexibility to move on the right opportunities at speed.

·     Advertising trends continue to be accelerated by the impact of COVID-19, resulting in money rapidly moving into the mobile sector. Combined with a strengthening economy, Digitalbox is well placed for growth.

 

 

James Carter, CEO, Digitalbox plc, said: "Digitalbox delivered a very positive performance in 2020. Despite challenging market conditions, we thrived by taking advantage of the changing landscape to deliver on our strategy of building a leading mobile-focused media business by acquiring additional assets and integrating them with our Graphene operating platform. This success has been greatly aided by our agile approach enabling us to quickly adapt to opportunities and challenges as they arise.

 

"The year saw a massively disrupted economic environment created by the COVID-19 pandemic alongside some significant turbulence within social media platforms as their algorithms struggled to manage issues around misinformation. However, I am pleased to report we have moved the business forward, ending the year operating three significant brands and in a much stronger position than we started it.

 

"2020 ended with the business having traded profitably on an adjusted EBITDA basis, having brought on board a cornerstone investor in Downing Strategic Micro-Cap Investment Trust plc, and, importantly, having continued our buy and build plan in acquiring The Tab at the beginning of October.

 

"We enter 2021 with cash at the bank, an expanded portfolio of assets, a stronger investor base, a brighter advertising market and a re-invigorated Board. We look forward to 2021 as a trading period that will start to normalise and present more acquisition opportunities as the reality of life begins to create pressures on those businesses who were less able to navigate the economy in 2020."

 

Footnotes:

[1] 2019 refers to 10 months of trading of The Daily Mash and Entertainment Daily.

2 Adjusted EBITDA is defined as the loss from operations after deducting depreciation, amortisation, share-based payments, acquisition and listing costs, direct costs associated with business combinations and capital restructure costs.

Government-backed CBILS scheme loan of £450k taken in October 2020 and £50k Government-backed CBILS scheme loan taken on as part of the acquisition of The Tab.

4 Figures include full-year Google Analytics compound audience figures for Entertainment Daily & The Daily Mash and post-acquisition period Oct-Dec 2020 for The Tab and associated social channels.

 

Investor Presentations

 

InvestorMeetCompany

The Company will provide a live presentation via the InvestorMeetCompany platform today at 9:00am. Introduced by Company Chairman, Marcus Rich and presented by CEO James Carter and the executive team, the presentation is open to all existing and potential shareholders. Questions can be submitted at any time during the live presentation.  Investors can sign up to Investor Meet Company for free and add to meet DIGITALBOX PLC via: https://www.investormeetcompany.com/digitalbox-plc/register-investor

 

MelloMonday

Furthermore, Digitalbox will also be attending MelloMonday today from 5.00pm - 9.30pm via Zoom webinar. CEO James Carter and CFO David Joseph will be presenting to participants and taking questions during the event.  If you would like to attend the webinar as a shareholder, please get your ticket here using code SHVIP for 50% off.

 

Market abuse regulation:

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

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