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Digitalbox jumps as 2019 profits ahead of market expectations

11:01, 16th January 2020
Francesca Morgan
Company News
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London-listed Digitalbox (AIM:DBOX) FOLLOW told investors on Thursday that adjusted profits before tax for 2019 were recorded as ahead of market expectations in a morning trading update.

The owner of media platforms, Entertainment Daily and The Daily Mash, said in a statement that the year ended 31 December 2019 had also seen operating margins and revenue above forecasts.

The company attributed solid business growth to its celebrity news platform, Entertainment Daily, which has seen its customer base surge with the site hitting more than six million unique users in December, a historically ‘peak’ month.

The website saw google-sourced traffic skyrocket to 127% as a result of the company's efforts to broaden its user base via ‘mobile-optimised content’.

This has been driven by an Insights programme used to analyse user behaviour and inform a better content strategy which CEO, James Carter, said has meant “a record year” for the platform.

Shares in Digitalbox reacted positively and were trading 18.87% higher at 7.875p on Thursday morning.

DBOX price chart

Also boosting profits was the group's satirical news site, The Daily Mash, which the company acquired in March last year, showing a 15% year-on-year increase in the second half of 2019.

Carter said the integration of the website into Digitalbox's proprietary technology platform, Graphene, had sparked an increase in advertising revenue.

“The focus on mobile makes the company ideally placed to take advantage of the continued acceleration in digital advertising via programmatic,” Chairman, Sir Robin Miller highlighted in the group’s interims in September 2019. 

In addition, The Daily Mash’s BAFTA-nominated TV show spin-off ‘The Mash Report’ saw further success with a new series aired on the BBC.

“We are continuing to evaluate opportunities to acquire more digital publishing assets. As 2019 has demonstrated, we can generate increased revenue from them with our technology and expertise,” added Carter.

2020 marks Digitalbox's first year as a digital media business following its acquisitions of both Entertainment Daily and The Daily Mash in the first quarter of 2019.

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