In a trading update, Digitalbox (DBOX ) confirmed to investors that it expects revenue and EBITDA for the year ended 31 December 2021 to be “significantly ahead” of expectations.
The mobile-first digital media business and owner of the websites Entertainment Daily, The Daily Mash and The Tab, has upgraded its previous market consensus of £0.7m EBITDA for FY21. It now expects to report revenue no less than £3.3m for the twelve month period.
Digitalbox, which generates revenue from the sale of advertising in and around the content it publishes, said trading across its three brands has been stronger than anticipated in the second half of the year, therefore representing the Company’s biggest trading period.
The Company said the positive trend in the UK mobile advertising market has continued which has contributed to the revenue overperformance as well as ‘some very strong traffic.’
Shares in Digitalbox were trading 25.00% higher this morning at 8.75p following the news.
Specifically, the Group attributed larger audiences to the popularity of the seasonal TV stalwarts Strictly Come Dancing and I’m A Celebrity on its Entertainment Daily website.
The Daily Mash’s spin-off show which debuted on Dave has driven audiences on Late Night Mash while Netflix’s latest TV series Squid Game has engaged more readers on The Tab.
Digitalbox’s Entertainment Daily produces and publishes online UK entertainment news covering TV, showbiz and celebrity news; The Daily Mash produces and publishes satirical news content; while The Tab is the UK’s biggest youth culture site fuelled by students.
Digitalbox outlined to investors that its strategic focus remains ‘creating compelling content optimised for mobile’. The Company said this has delivered ‘disproportionate growth’ in its advertising revenues to date, owing to increased demand for high-quality mobile inventory.