Trading Statement

Dianomi, a leading provider of native digital advertising services to premium clients in the Business, Finance and Lifestyle sectors, announces the following trading update for the year to 31 December 2023.

For the year to 31 December 2023, the Company expects to report revenue broadly in line with market expectations at approximately £30.1 million and a loss at adjusted EBITDA* level of approximately £0.3-0.4 million, subject to audit. Profitability improved in the second half of the year as the Company benefitted both from the cost savings from the restructuring in the first half of the year and the enhanced revenue share resulting from a contract amendment with one of the Company's largest publishers, as announced in September 2023. Unaudited cash as at the 31 December 2023 was £7.7 million (30 June 2023: £7.1 million), demonstrating improved cash conversion in the second half of the year.

As previously reported, the decline in traffic volumes has been a key issue for publishers in 2023 and, despite the fact that demand from Dianomi's 400+ premium financial and lifestyle advertisers has remained consistent, the reduced traffic made fully monetising this demand more challenging. Looking ahead, we expect to add key new publishers, extend our programmatic distribution and potentially benefit from increased traffic during a US election year.

The Company expects to report full year audited results for the year to 31 December 2023 around mid-April 2023.

Rupert Hodson, CEO of Dianomi, said: "Traffic levels across major publications were significantly down and this unsurprisingly impacted our business in 2023. That said, we enter 2024 in a good position. Backed by a well-capitalised balance sheet, we have an encouraging pipeline of prospective advertisers and publishers, combined with new product launches which are expected to make contributions over the next 12 months."

* Adjusted EBITDA is calculated as profit after tax before deducting net finance costs, tax, depreciation, exceptional items relating to the restructuring and share based payment charges