Market's view on Digitalbox
Published on April 2024
- Digitalbox plc faced a difficult UK advertising market and platform restrictions affecting publisher traffic, but these challenges are easing, with resolved issues and a positive traffic upturn from November 2023.
- The acquisitions of TVGuide.co.uk and Social Chain pages are integrating well into Digitalbox’s operations and meeting performance expectations.
- The company anticipates EBITDA for the year ended 31 December 2023 to align with market expectations and foresees improved trading conditions in 2024.
- Digitalbox ended 2023 with more than £1.9m in gross cash.
- The company remains confident despite ongoing economic challenges, noting a diversified and balanced traffic sourcing for its platforms.
- Some stock watchers express concerns about the company’s management and the timing of communications regarding adverse trends.
- There are mentions of potential regulatory challenges from entities like the CMA or EU regarding market competition.
- Observations highlight that significant company value is held in cash, with positive movements in acquiring paying customers on some offerings.
- The completion of the TVGuide.co.uk acquisition was noted, with a reduction in total consideration and funding from Digitalbox’s cash reserves.
- Previous financial updates showed good cash generation and a fast payback on acquisitions, despite less impressive revenue and profit figures.