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Digitalbox Shares Rally On Strong First-Half Performance

Updated: 28 Sep 2021

Shares of mobile digital media company Digitalbox (LON: DBOX) are rallying Tuesday after releasing its interim results for the six months to 30 June 2021.

The London-listed company reported a pretax profit of £0.1 million, while during the same period in 2020, it revealed a loss of £0.1 million.

Revenue came in at £1.3 million, rising 37% from £1 million in H1 2020.

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“Increased auction competition for high-quality mobile inventory has fueled growth in session values across the portfolio,” the company said in a statement.

The focus on mobile publishing has seen disproportionate growth in advertising revenues, the company said. 

Entertainment daily session values rose 43%, while ad unit prices increased over 30% in Q1. 

The Tab website users rose 15% to a total of 34 million for the period, with Digitalbox stating that the site continued to generate an adjusted operating profit through every month in the period.

Looking ahead, Digitalbox said trading has remained strong since the end of H1. As a result, the group is optimistic regarding the continued trading momentum in the second half of the year and expects its full-year outcome to be ahead of market expectations. 

James Carter, CEO of Digitalbox lc, said: “Digitalbox's performance has exceeded our expectations amid the turbulent economic conditions of the first half of 2021, reaching profitability at profit after tax and EPS levels. This is evidence of our resilient operating model and strong management.”

The company's shares are one of the biggest gainers in London on Tuesday, currently up 10.75% at 7.4p,  adding to its 16.85% year-to-date gains.

Should you invest in Digitalbox shares?

Digitalbox shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are DBOX shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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