Digitalbox (AIM:DBOX), the mobile-first digital media business behind Entertainment Daily, The Daily Mash, The Tab, The Poke and tvguide.co.uk, swung to an adjusted EBITDA loss of £43,000 in the six months to 30 June, down from a £289,000 profit in the same period last year.
Group revenue fell 7% to £1.7 million from £1.8 million in H1 2025, as strong trading in the first quarter gave way to what the company called "significant audience headwinds" from the second quarter, after Meta changed its algorithms to favour video-led creator content. Gross margin improved to 83% from 80%, reflecting stronger advertising yields and session values even as audience volumes fell, and the group recognised a £634,000 impairment charge on intangible assets, pushing it to an operating loss of £983,000.
Cash at bank rose to £2.0 million at period end, up from £1.8 million at 31 December 2025, with operating activities generating £208,000 of cash against a £166,000 outflow a year earlier.
Divisionally, Entertainment revenue dropped 23% to £783,000, hit hardest by the platform changes, while Youth revenue rose 17% to £636,000 and Humour grew 10% to £287,000.
The group has launched the Digitalbox Creator Network, combining The Tab Student Network and its Entertainment Network, with more than 200 creators expected to produce around 500 original videos a month by October, aimed at building direct-to-advertiser revenues beyond programmatic traffic.
"We have responded quickly, reducing costs while accelerating our investment in original video and creators," said James Carter, chief executive of Digitalbox.
As flagged on 6 August, full-year revenue and adjusted EBITDA are expected below previous market expectations, with the board targeting an adjusted EBITDA margin of approximately 8% for FY 2026 and second-half revenue projected to decline by a similar percentage to H2 2025.