- Wednesday, October 16, 2024
Digitalbox, a London-listed digital media business, anticipates reporting lower revenue in the first half of the year due to declining traffic volumes. These traffic decreases are projected to continue into the second half. The company attributes this decline to macroeconomic pressures and the efforts of major players, such as Alphabet and Meta, to increase consumer engagement on their own platforms.
To counteract these challenges, Digitalbox is planning a platform pivot. They intend to leverage AI-assisted video output creation to enhance audience engagement with their brands. This strategic expansion is seen as a significant opportunity for the company to generate revenue in 2024 when the digital ad market is expected to recover. Additionally, it will allow Digitalbox to become less reliant on diverting audiences from major platforms.
Based on their projections, Digitalbox expects to report first-half revenue of £1.2 million ($1.5 million), compared to £1.9 million the previous year. Furthermore, the company's board estimates that the full-year revenue will amount to approximately £2.8 million, a decrease from £3.6 million in 2022.
As of 1532 GMT, shares were down 0.25 pence or 4.6% at 5.25 pence.
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