3rd Dec 2020 11:46
(Alliance News) - Digital media firm Digitalbox PLC on Thursday said its earnings will not meet market expectations despite seeing rising traffic levels and forecasting improved trading in the second half.
Digitalbox shares were 21% lower at 5.30 pence each in London late on Thursday morning.
Digitalbox, which operates the Entertainment Daily, The Daily Mash and The Tab brands, said Covid-19 has meant trading has been "unpredictable" in 2020.
The digital advertising market had a "difficult" second quarter, but it strengthened in the third quarter, helping the Entertainment Daily arm in particular.
"This continued during August and September, helping to mitigate the impact of a market-wide algorithm change that negatively impacted social media traffic in the lead up to the 2020 US elections," the company added.
"With the audience model working well prior to this change, traffic volumes started a recovery in October and November."
Digitalbox added that traffic levels are increasing monthly though not by enough "to enable the company to meet current market expectations for revenue and profits".
"Nevertheless, revenues and profits in the second half will be stronger than the first, and the company still expects to be profitable and cash generative for the year as a whole," Digitalbox added.
By Eric Cunha; [email protected]
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