UK's Digitalbox H1 revenue falls amid platform changes

Digitalbox

23/09/2026 07:10

Overview
UK digital media firm's H1 2026 revenue fell 7% yr/yr amid audience headwinds
Adjusted EBITDA swung to a small loss, reflecting lower audience volumes and investment in video
Company implemented cost reductions and expanded original video production to offset platform changes

Outlook
Company expects H2 2026 revenue to decline by a similar percentage as H2 2025
Digitalbox expects FY 2026 revenue and adjusted EBITDA below previous market expectations
Company targets adjusted EBITDA margin of about 8% for FY 2026

Result Drivers
META ALGORITHM CHANGES - Co said audience volumes fell sharply from Q2 as Meta shifted to favour video-led creator content
IMPROVED MONETISATION - Co said advertising performance, session values and yields improved significantly yr/yr
COST REDUCTION - Co implemented cost reduction measures to align operating base with lower audience levels

Company press release: ID:nRSW8638Va

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
GBP 1.70 mln
 
H1 Gross Margin
 
83.00%
 
H1 Gross Profit
 
GBP 1.40 mln
 

Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Digitalbox PLC is GBp10.00, about 94.2% above its September 22 closing price of GBp5.15
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 6 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)