Digitalbox shares slump amid 'unpredictable' trading environment
By Iain Gilbert
Date: Thursday 03 Dec 2020
(Sharecast News) - Digital media business Digitalbox said on Thursday that trading had been "unpredictable" throughout 2020 as a result of the Covid-19 pandemic.
After a "difficult" second quarter, Digitalbox said the digital advertising market had strengthened towards the end of the third quarter, translating into "much better than predicted" session values being delivered on its biggest brand, Entertainment Daily.
Digitalbox stated that this had 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.
However, the AIM-listed group stated that although traffic levels were now increasing month-on-month, the quarter was not now expected to be sufficiently strong to enable the company to meet current market expectations for revenue and profits.
Nevertheless, Digitalbox stated that revenues and profits in the second half would be stronger than the first and that it still expects to be profitable and cash generative for the year as a whole.
As of 1040 GMT, Digitalbox shares had slumped 18.37% to 5.51p.
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