Digitalbox plc (LSE:DBOX) reported on 23 September 2026 that first-half Revenue slipped 7% to £1.706 million, with an adjusted EBITDA loss of £43,000, after changes to Meta's platform cut audience reach from the second quarter. The mobile-first publisher says it expects second-half revenue to fall by a similar percentage as it launches a creator network.

What the company does

Digitalbox owns digital media brands aimed at specific audiences. LSE:DBOX's Entertainment division includes Entertainment Daily and TV Guide, Youth centres on student site The Tab, and Humour covers The Daily Mash and The Poke, with The Daily Mash also running a subscription offer. Revenue mainly comes from Advertising and branded content, with customers in the UK, Europe and the rest of the world.

Interim results

Group revenue was £1.706 million, down from £1.826 million. Gross Margin improved to 83% from 80%. Adjusted EBITDA swung to a £43,000 loss from a £289,000 profit. An Impairment of £634,000 against Goodwill and the Daily Mash brand, triggered by falling programmatic advertising revenue from platform changes and lower search referral traffic, pushed the operating loss to £983,000. The loss for the period was £951,000, or 0.81 pence per share.

Entertainment revenue fell 23% to £783,000, while Youth grew 17% to £636,000 and Humour rose 10% to £287,000. Cash at 30 June 2026 was £1.985 million, up from £1.820 million at the end of 2025, and the company has no bank debt. Cash generated from operations was £208,000.

Trading update and creator network

On 6 August 2026 LSE:DBOX warned that full-year revenue and adjusted EBITDA would fall short of market expectations, which then stood at £5 million of revenue and £0.8 million of adjusted EBITDA. First-quarter trading had been solid, but Meta's changes favoured video from creators and cut reach for publishers. Audience engagement recovered somewhat in June, though the board remains cautious.

In response it launched the Digitalbox Creator Network, combining The Tab Student Network and an entertainment network, with more than 200 creators and over 30 million social followers. It aims to produce about 500 original videos a month by October 2026. The cost reduction programme was completed during the half, costing £59,000, and the board expects savings in the second half. The current target is an adjusted EBITDA margin of about 8% for the year.

The interim figures show how much a single platform can matter: Entertainment contribution fell as adjusted EBITDA for that division dropped to £252,000 from £457,000, while Youth improved to £218,000 from £190,000. Head office costs rose to £556,000 from £424,000, and revenue from the UK increased to £653,000 while Europe fell to £834,000.

Corporate changes

LSE:DBOX changed its auditor, announced on 20 July 2026, and has issued several holding notifications over the summer. It does not pay a dividend.

Sector and index context

Digitalbox is a small member of the FTSE AIM All Share Index, where digital media names are few.

Key risks

Audience volumes remain volatile, and the creator pivot will reduce margins in the short term. Further impairments are possible, as the Entertainment division's value in use now equals its carrying value. Competition for advertising budgets and for creators is intense.

What to watch next

Investors will follow reach and session trends, video output against the 500-a-month goal, cost savings, and whether second-half revenue meets the board's expectation. The full-year results will show whether the EBITDA margin target is reached.