Dianomi warns on FY profits
By Iain Gilbert
Date: Thursday 18 Jul 2024
(Sharecast News) - Digital advertising firm Dianomi warned on Thursday that profits would be lower in FY24 as gross margins looked set to remain flat half-on-half.
Dianomi said that whilst its pipeline of publisher prospects was "as strong as it has ever been", the certainty and timing of converting these opportunities can vary.
The AIM-listed business said it was reliant on closing new contracts with both publishers and advertisers to deliver its second-half growth expectations.
However, reflecting a trend in publisher mix seen in H1, gross margin for the full year was now expected to remain at a similar level for H2 at roughly 26%, which will impact profitability leading to lower underlying earnings.
Chief executive Rupert Hodson said: " Following a challenging 2023, this year our markets have stabilised albeit a level of caution remains. That said, we are attracting the interest of leading global publisher brands and our new pipeline of prospects is extremely encouraging.
"I believe this reflects the growing demand from major publishers to secure privacy-first demand across both native and display, as they continue to future-proof their business in preparation for cookie deprecation and the loss of identity signals. Whether we can monetise this potential fully in 2024 remains to be seen but our longer-term market position is strong."
As of 1125 BST, Dianomi shares had sunk 8.55% to 53.50p.
Reporting by Iain Gilbert at Sharecast.com
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