Digitalbox eyes creator-led growth as it rides out Meta disruption

Digitalbox eyes creator-led growth as it rides out Meta disruption

Digitalbox PLC (AIM:DBOX, FRA:RLXB) , the mobile-first digital media group behind The Daily Mash and The Tab, believes the upheaval sweeping digital media presents significant opportunities for nimble players, and says a strong balance sheet leaves it well placed to seize them.

The AIM-listed company, which ended June with £2 million of cash, is pressing ahead with a major expansion built around original video and online creators. Its new Digitalbox Creator Network, spanning The Tab Student Network and a growing Entertainment Network, comprises more than 200 creators expected to produce around 500 original videos a month by October.

The push is designed to broaden Digitalbox's revenue base beyond traditional publishing and open up direct deals with advertisers, tapping trusted editorial brands, original video and more than 30 million social followers. The strategy is a response to a turbulent half. After a strong start to the year, the group was hit from the second quarter by changes to Meta's algorithms that favoured video-led creator content, denting audiences for publishers reliant on social distribution. Digitalbox cut costs in response while accelerating its investment in video.

Chief executive James Carter said the company had moved quickly, reducing costs while building an increasingly compelling proposition for advertisers across editorial, social, video and creator-led content. The board remains cautious on audience volumes and expects second-half revenue to fall by a similar percentage to a year earlier, having already flag...