Digitalbox (LSE:DBOX) — Full Year Results Presentation

0:00 Good morning ladies and gentlemen and welcome to the DIGITALBOX PLC full year results presentation. Throughout this presentation investors will be in listen only mode. Questions are encouraged and can be submitted any time by the Q and A tab situated in the right hand corner of your screen. Simply type in your question and press 'Send'. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so. These will be available via your investor. Me company dashboard and will be notified once they're ready for your review.

0:31 I'd also like to remind you this presentation is being recorded. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to James Carter, CEO David Joseph, CFO Jim Douglas, CEO and Marcus Richland, Executive Chairman of DIGITALBOX PLC. Good morning. Good morning. Good morning, everyone, and welcome to the DIGITALBOX twenty twenty annual results presentation. My name is Marcus Rich, and I am the newly appointed chairman of DIGITALBOX. I'm gonna turn the camera off to ensure that you have full focus on the slides and also to improve the bandwidth for the presentation.

1:18 Thank you. So I joined in February 21 this year where I picked up the reins from sir Robin Miller. So I'd like to go on record to thank Robin for his guidance that he offered DIGITALBOX over the last few years. Just a bit about my background. I've seen and been involved in the development of many great media brands over the years, many great organizations. I worked for EMAP, and that was an amazing experience as we built the magazine organization out across the globe. I was the managing director of The Mail on Sunday, and this gave me significant insight to the challenges faced by legacy media and the migration to digital publishing. Most recently, from 2014 to 2020, I was the CEO of the 200,000,000 plus turnover TI Media.

2:12 TI Media was part of an American PLC before we completed the private equity led management buyout in 2017 and ultimately a trade sale to future PLC in 2020. The business had market leading established print media brands, which had successfully started the transition towards a digital future. Enough so to deliver shareholder growth to exit private equity within three years, and headroom for future PLC to accelerate both on digital platforms and internationally. DIGITALBOX is actually more advanced than TI Media was in providing engaging content through market leading brands on consumers platform of choice and the consumers platform of choice is now primarily the mobile phone.

3:07 DIGITALBOX is also free of the need to manage legacy print brands and it can deliver and it can leverage its proprietary tech stack and operating model to grow both organically and through acquisition. In addition, the proven DIGITALBOX team have a sharp eye for spotting new news driven content needs and can monetize these audiences better than most. I think the existing margins and cash generation is a testimony to this versus competitors I have seen. By continuing to execute on the stated buy and bills strategy. I can see parallels with future a mini future plan if you like. I believe in the team and I'm excited to be leading them through the next stages of growth.

3:59 In addition, I look forward to maintaining the high standards of corporate governance implemented by the board and maximizing the value of the non executives experience to build a fast growth business delivering strong shareholder returns.

4:17 Just a very brief introduction to DIGITALBOX before I pass over to the CEO, James Carter. So DIGITALBOX is a pure play digital media company with a pedigree in emerging publishing technologies. We are 100% digital and mobile focused. We have a strategy to acquire, transform, and grow digital media properties with potential. It is worth noting we're market leading and mobile first and profitable because, as I mentioned, this is a pretty rare combination.

4:58 Our business model is very simple. We own and operate websites that publish highly engaging content for their target audience. These audiences then visit the website to consume that content whereby we generate revenue from a variety of different commercial solutions. What's been impressive about DIGITALBOX is the fact they've continued to deliver their uninterrupted over the most challenging year in the economy for the last three hundred years. This says a lot about the foundations the team have built the business around, including always looking forward and never being restrained by the past. In doing this, they've built a business that targets future value and as always, as we said, been ahead of the curve in terms of margins.

5:50 There are many points we could cover here, but the team have always stated the need to remain agile in order to prosper. In relative terms, the digital content marketplace is young versus traditional media, which means it's still evolving, particularly in new areas of monetization such as ecommerce, paid for subscriptions, and affiliate revenues. It is this agility that has enabled the team to switch its focus in line with opportunity and deliver a successful year, which is the path they will continue down. I would now like to hand you over to James Carter, the CEO of DIGITALBOX. Thank you, Marcus. Thanks for the introduction. The presentation should last about twenty to twenty five minutes. It's broken down into five sections. I'll take you through the leadership team before David Joseph, our CFO, takes you through the numbers for the business in 2020.

6:50 I'll touch on really the big transformations that we saw take place in the last year before Jim takes you on more sort of intimate journey through the brands and the highlights on those brands before I sum up with how the future looks. So firstly, an introduction to the leadership team. We are a leadership team that is pretty well qualified, we think, to fuel the growth required from the DIGITALBOX business. We've all worked at PLC's. We've all worked on big brands.

7:28 And we've worked on startups. For example, FHM was a brand I worked on at EMAP that grew to a $250,000,000 business. Factory Media was a buy and build business that operated in the action sports sector that we raised I co raised 3,500,000 to start about 10 years ago and exited at 12,500,000. And Jim Douglas has a big history on the editorial side of the business, having launched fantastic products like Futures Tech Radar and guided that business to be Digital Publisher of the Year on five occasions during his time there. David Joseph brings a huge amount of experience across a great portfolio of media products in the financial sector.

8:27 So we've refreshed the board and introduced new talent. Obviously, Marcus is the leading part of that, but we've also brought on Matthew Armitage, who heads our audit committee at the moment. And we have Martin Higginson, who's one of the original founders. But I think if we're to look at our business and look at why perhaps we've generated some success in the past couple of years, then it's really to look back and consider Jim and I have been quite liberated in the way that we can approach this business. As Marcus mentions, we've always been looking forwards. And looking forwards to the point where I've had the opportunity really to do things like build a website from scratch, to create content from scratch, to publish that content from scratch and distribute that content.

9:25 Those things, I think it's fair to say, I would not have done if I'd been within a PLC environment. So having that liberty to act and roll our sleeves up and really understand how the business today works, fused with our long term experience over the last five to ten years in media or longer, sorry, then has really put us in a great position to tackle the future. So just to sum up or recap on our mobile first strategy. We aim our content and our profitability through a smartphone journey or a mobile journey. And there's a simple reason for that. 84% of adults use it to access the Internet. And that figure has been growing also during lockdown over the past year.

10:20 There are very few publishers that are making a profit via a mobile journey. So if you look at one of the biggest news based websites on the planet, the Mail Online, They reported a 100,000,000 of revenue last year and just 1,000,000 of profit. And you can be very, very sure that that 1,000,000 wasn't coming out of the mobile journey. And what we've been doing is overlaying our tech expertise with what we call our proprietary tech setup, which is graphene. And that enables us to really convert businesses and platforms that are slower, perhaps, than they would ideally be in the mobile sector to optimize their performance in a mobile distribution world.

11:15 And doing that, we've been guided absolutely by profitability. So everything that we do is screened through a profitability filter. And that really ends up with us creating a differently structured business that one is that is driven for revenue. And that is pretty fundamental in how we form the business to date. So looking back at the highlights really of the past year, well, we have managed to advance our buy and build strategy. We have our second acquisition whilst we've been on the A market through the TAB in October 2020. We've developed further our graphene platform that really has helped increase site speed and user experience alongside the tension within the bidding, within the auctions for our advertising inventory.

12:11 And we've also bought on a major investor in Downing, which has given us a great position to go forwards with cash in our business at the moment. And in addition to that, delivered a profit. Now David Joseph will take us through the numbers. Over to you, David. Thanks, James, and good morning all. I've got three points today. The first one being the income statement. This slide shows the extracts from the income statements for 2020 and 2019 as per the reported financial statements. It's important to note that 2019 included the results of Entertainment Daily and the Daily Match for ten months only, but in 2020, it included the results of these two brands for twelve months plus three months of trading from our latest acquisition, the Tap.

13:04 Despite all the challenges in 2020, the business traded profitably with only a marginal overall revenue decline and made £305,000 of adjusted EBITDA. The sheer scale of the impact on global advertising revenues arising out of the measures put in place by governments all over the world in order to combat the effects of the virus has rendered underlying year on year comparisons by brand over meaningless, hence we're simply focusing on business as a whole. What is fair to say is that the events of 2020 acted as a catalyst for change, with the fundamentals of the business coming out stronger. And James will take us through that in some detail. DIGITALBOX is an ultra high margin business. In 2020, gross margins reduced from 82% to 76% as advertising revenue advertising rates fell globally during the wide heat of the market disruption, but rates have recovered.

14:06 Once again, I steer towards the adjusted EBITDA figure as the key indicator of underlying health and strength of the business as everything below this is either noncash financial accounting or nonrecurring. The next slide is cash generation. One of the most impressive features of this business is its ability to generate cash, and this slide illustrates this perfectly. I've restated this statement to cash flows in order to highlight the cash generated from trading. This is what is really going on in the business, the conversion of trading EBITDA into an increase in cash at the bank. You'll notice a significant inflow of cash from trade debt this year. This results from the clearing of an issue lingering at the end of twenty nineteen and the continued strong performance of the collection efforts.

15:00 The outcome of this year's trading activities is that this has generated GBP 619,000 of trading cash inflows, that is adjusted EBITDA plus the inflow from working capital. We can see the reconciliation of cash inflows to the reported financial statements below. Exceptional EBITDA into cash percentage in 2020 is an anomaly, of course, but we should expect normalized cash conversion to be around 95% of EBITDA. That is, whatever EBITDA we generate, around 95% of this will serve to increase the bank account.

15:41 We end the year with 1,900,000 of gross cash in the bank, partly due, of course, to us having £05,000,000 of government backed loans. Next slide. Statements of financial position. I'm drawing your attention to six points of notes here. Number one, the largest item on the balance sheet is intangible assets, largely goodwill. We've considered carefully the carrying value of these items and are comfortable that they are still relevant as the brands we operate were not diminished by the events of last year, in fact, from it. The second point, trade better reduction. This is inevitably a direct result of lower revenues in the latter half of twenty twenty compared to 2019 due to the pandemic effects, but also enhanced, in this instance, by the clearance of the collection issue I referred to that existed at the end of twenty nineteen.

16:42 Third point is cash at the bank, £1,900,000, bolstered by the underlying trading, bringing on a new cornerstone investor, taking on government backed loans, but after all the costs of acquiring TAG. The fourth point, the business is highly liquid, having £2,400,000 of net current assets, which for a business of this size is very substantial. The fifth point, bank loans. We took out a CBILT loan of £450,000 and inherited a £50,000 loan on acquiring the TAB. Are interest free for the first year, we've had to make a financial accounting adjustment to allow for this, hence the total debt of GBP $05,000,000 translates as GBP $490,000,000 on the balance sheet.

17:33 And the final point, share capital, share premium accounts and distributable reserves. We took the opportunity of tightening up the capital structure last summer and canceled the deferred shares, which carried no value but were a distraction. At the same time, we transferred GBP 19,500,000 from the share premium account to distributable reserves. We also secured injection of funds by bringing in a new cornerstone investor. That's it for me. Thank you, David.

18:10 So 2020, you can see here, we label it a year of transformation. And really for us it was a year of two major challenges. Not just the one, but two. One was the COVID pandemic and its direct impact on the economy. And the second was the algorithm changes that the social media companies had to put through to try and root out misinformation. And the result of these misfiring algorithm changes was something we had to face, which I'll take you through. Nevertheless, it brought us through a year with four distinct transformations. So looking at the first one and addressing COVID head on here.

19:00 The chart that you see in front of you is the dark blue line, the session values generated by Entertainment Daily in 2019, and the light blue line, those session values in 2020. You can see at the beginning of the year, we're trading nicely ahead in January, up year on year before March. There's a substantial hit to the value of the sessions that we're generating from the open market. Dropping from about £12 to approximately £6 Now that really was the result of the seismic shock that went through the economy as the advertising market stopped spending, reconsidered its options and just thought about things before really committing anything major to marketing spend.

19:56 And as you will see, and this chart I must say is representative of our business and the broad market. As you will see, as we move through Q2 towards the end of Q2, you see the light blue line going above 2019. And really what we saw here is the trend of advertising flowing onto digital mobile devices increase once the market had rebased, and increase disproportionately year on year. So looking at Q3 and Q4 of twenty twenty, there was a surging back in revenues and a big, big increase as we went through the year. And as you can see towards the end, we were averaging over £22 And it's a fact that has stuck.

20:51 This repositioning of digital mobile advertising in the mix has remained as strong as we move through into 2021.

21:04 So I mentioned Facebook misinformation and the algorithm changes. Well, Facebook were in a tricky position last year. First of all, they knew they had the US elections on the horizon. They knew how they'd been challenged by the very thing in 2016. And they knew they had to make changes to their systems in order to ensure that fake news or misinformation was not rising to the top. They also had the twin challenge thrown into that mix then of misinformation around Covid, anti vaccine stories, a whole load of illegitimate information that was getting oxygen within their system.

21:50 So they had to act and they had to act quickly. They created some algorithms that unfortunately rooted out legitimate information, which included some downgrading of reach on Entertainment Daily and also the Daily Mash, which was a victim to really the algorithms not understanding the difference between satire and fact. So we had some unfortunate reach reduction over the middle of the year, which is pretty much equal to that of the COVID decline in Q2 and Q3. But the really positive thing that we can take from this is, if you look at the traffic profile for the DIGITALBOX or the entertainment daily business, which is representative of the DIGITALBOX mix in its entirety, you can see in Q1, we had about approaching 80% of our traffic being sourced from social media platforms.

22:57 By Q4, we'd changed that mix considerably. It was running at about 40% in Q4 and would increase significantly the amount of traffic being sourced out of organic SEO based

23:16 part of our business. And also the direct source based of our business. So these two things are obviously Google Search and Google Discover the two areas of our business that we grew massively in the past year. So we've got a much, much better balanced business at the back end of the year to move forwards into 2021.

23:42 Another thing that we did during 2020 was increase our unique user base. You can see from the light blue line here that we were running at around 6,000,000 unique users in the spring of twenty twenty. You can see the slight reduction running through July and August, which is the result of the misinformation algorithms failing. But you can see our climb back into the autumn, which includes around 6,000,000 unique users added to our business from the acquisition of the TAB in October. So from a position of 6,000,000 unique users every month, we moved to 12,000,000.

24:28 So significant growth in the actual scale of the business. And through that acquisition, we really proved our model. So one of the things that we really believe is by layering on our processes and layering on our technology approach through our graphene platform, we can transform businesses. We improved the fortunes of the Daily Mash when we bought that. And here you can see very directly, we've improved the fortunes of the TAB. The TAB historically lost around £400,000 in 2019. And from October onwards, we've moved it to profitability through the technology and our approach over those months, creating a contribution of over £100,000 in that quarter.

25:22 Jim, over to you to introduce some brand highlights. Thanks very much James, good morning everyone. So I'm going to briefly cover some 2020 highlights by way of an introduction to the products that we currently have in the portfolio. Entertainment Daily or ED is our most established brand, and in many ways the pathfinder product for the digital box model. Its core demographic is 25 to 55 year old women, and the brand's editorial remit is the delivery of fast paced TV and showbiz news with a strong UK focus. The strategy for this year as James just mentioned in the transformation section has been building out our audience sources in particular traditional Google search and through Google's discover feed.

26:15 So just to put a bit of detail on that the search aspect is really driven by curiosity where users watching TV will often be dual screening with their phones in hand and looking for facts about cast members they may recognize or a good recent example lots of people watching Line of Duty will

26:34 be searching what the various police acronyms mean. So our job is to anticipate and have content ready to best serve that audience when they need us. And as well as traditional search we've seen strong growth in the Google Discover feed which suggests content to users from trusted sources rather than them needing to search. In particular we see viewer reaction stories work really well here like this story you can see on the bottom left about the cocky contestant on the million pound cube who was taken down a peg or two by Philip Schofield and in some ways in lockdown people are turning to digital media sources to replace the experience of the water cooler moment discussion that they used to have at work that did you see conversation the morning after a big moment from the night's TV.

27:25 When when Google's selecting which stories to include in its feed it opts for content that delivers the most engagement and Entertainment Daily has really flourished here this year thanks to really punchy content that's totally in tune with our readers. So as a result of us obsessing about finding the content that works the best, we've doubled our sessions through these channels and combined with direct sessions they grew to represent more than half of Entertainment Daily's traffic in Q4.

27:55 And finally on Entertainment Daily, we've seen a 55% increase in IAB advertising CPMs in Q4 year on year. Now this is driven by advertisers competing to access Entertainment Daily's very desirable audience, but crucially it's driven by the ability that our graphing platform gives us to maximise the value from this demand.

28:24 The DailyMash. The DailyMash is The UK's favourite satirical news site and we acquired it shortly after joining the market in 2019. Every day the MASH delivers a mix of topical news satire and its unique takes on the absurdity of modern life, so this year we've had stories like Dominic Cummings announcing his lockdown two tour dates and Donald Trump's guide to accepting defeat with grace and dignity. We've seen strong audience engagement as you can see with an increase in visits per user

29:02 and also users spending more time on the site looking to brighten their day and what's clearly been a pretty grim year. However as James mentioned we did face a challenge this year in the form of the Facebook algorithm as Facebook was trying to fight misinformation on its platform and despite claiming to be able to recognise and essentially exempt satire from its misinformation filters the algorithm struggled and MASH saw a reduction in reach in some of its content. We're working with Facebook to help them understand the difference between misinformation and satire. Also in the year as a fun piece of brand extension we partnered with a craft ale brewer Northern Monk to create a Daily Mash 2020 souvenir edition beer which carried a selection of choice MASH headlines on the can.

29:56 And of course I should mention the MASH report, the TV show licensed from the Daily MASH. The fourth series which aired in Q4 saw viewing figures climb from 800,000 per episodes to more than a million as the show successfully reacted to lockdown and pivoted away from its studio format. So anyone who's interested in TV satire will know that the MASH report really is the closest British TV has ever got to the hugely successful Daily Show in The States, which is quite an achievement and this series

30:28 was the best yet in my view. It's such a winning format that while the BBC haven't opted to renew for a fifth series, possibly for their own reasons, we're optimistic that now the rights have returned to us the show will find a new home on another channel in the not too distant future. The Great British Bake Off being a prime example of exactly that kind of switch. And rounding out the portfolio we have the TAB, the acquisition that we announced at the beginning of October and a perfect example of the DIGITALBOX strategy in action. As you may know the TAB is The UK's largest student and youth culture website and when we began considering the brand as a potential target it was clear that it already had a very strong editorial model with a core team in London and a network of editors and writers in 33 universities across the country and that meant the site could deliver national coverage with strong local depth and relevance on stories that matter to its audience.

31:38 But the commercial gearing of the product was wrong, and as James mentioned the brand was operating at a significant loss, so our priority was enabling the TAB to benefit from our graphene platform, which has immediately delivered an increase in session values. We also wanted to be certain that we

31:56 did a good job integrating the incoming editorial team joining the company with the minimum of disruption as they hit a key Q4 period. So as a result we saw strong Q4 traffic growth year on year as the team did an excellent job covering big streaming shows in particular like the Netflix show The Crown.

32:18 But we also wanted to build on the tab's reputation, it's got a strong reputation as a campaigning brand. So this year the site launched its You Matter editorial campaign which spotlighted the mental health and well-being challenges students faced during the pandemic. This strong editorial reputation has seen the tab stories picked up by outlets like BBC, Sky, The Telegraph and the Sunday Times and the team making regular appearances on TV including Good Morning Britain and ITV News. So the combination of great editorial content delivering strong audience engagement aligned with a more efficient commercial model has enabled us to bring the brand into operating profit which is a strong proof point of our ability to select the right kind of target and around COVID nineteen about trends being accelerated.

33:12 And I suppose it's our fortune really that we've positioned to be a mobile first publisher pre pandemic. Because we knew that eyeballs were moving to this channel and we knew that advertising was playing catch up. Looking at the charts that we have on the screen here, you can see how digital advertising forecasts shape up over the next three to four years. So in 2020, digital advertising was

33:44 thought to be approximately $348,000,000,000 but by 2024 reaches $5.00 $7,000,000,000 Now the key point within this is the red line that you also see. You can see that it's running at 76% share of that activity in 2020. And it will move to 80% share of that activity by 2023. So that's really proving the point that we're in a pretty sweet spot. And we see the forces from COVID-nineteen as accelerating that position as we move forwards. So, we think the market is right for consolidation.

34:36 The pace of change has been accelerated. There's no question about that. Some brands have been pushed into a questionable position by the contracting market in 2020. But equally, there's a shortage of natural buyers available to acquire those businesses with confidence and the belief that they can really transform them quite quickly. So we think we're really well positioned to deliver that with confidence. We continue to look. There are many opportunities passing across our desk at the moment, and we continue to look. And really looking in three pools of opportunity: carve outs from legacy publishers where they're struggling to make sense of perhaps a big brand that they've owned for some years.

35:28 First wave digital media businesses, which are typified by something like the TAB, where they've taken on considerable investments and had a great deal of hope for the opportunity that lay ahead, but that hope has not materialized to a reality of profitability. And bedroom startups, which could be just provide by things like the Daily Mash, where we can acquire those businesses and layer over an improved tech performance to enhance those brands and bring together the benefit of scale from an organization like DIGITALBOX. So in summary, looking back over the past years, we delivered profitable growth and we executed our strategy amongst some pretty tough market conditions.

36:24 We bought on a new cornerstone investor, which 1,200,000 from Downing. And we made an acquisition with the tab that proved very fruitful for us indeed. We diversified our audience base, so the business is in a much, much better shape than it was at the beginning of twenty twenty. And we refreshed the board in order to have the skills to really move the business forwards to the next level. And so quite simply, we think we're incredibly well set for a really, really bright future with opportunities lying before us over 2021. So back over to Paul and questions.

37:09 James, thank you very much and thank you to the DIGITALBOX team for the presentation. Ladies and gentlemen, please continue to submit your questions using the Q and A tab situated in the top right hand corner of your screen. We just want the team to take a few moments to review those investor questions submitted already. I'd like to remind you that recording of the presentation, along with a copy of the slides and the published Q and A, can be accessed via investor dashboard on the investor.me company platform. I'd also like to remind you that your feedback is important to the company and immediately after the presentation has ended, you'll be redirected to the opportunity to provide your feedback order that the company can better understand your views and expectations. James, perhaps before we go into the live Q and A, we did have a pre submitted question that's come in and perhaps we can start the Q and A session off with that, if that's okay. The question reads the following: What are the opportunities for scaling the business to be worth 50,000,000 plus plus as a business and over what period?

38:04 Well, we feel pretty confident that we can grow over a perhaps a two year window to something close to 50,000,000. If we think our business could reach quite quickly over one or two acquisitions, a position of 5,000,000 revenue with the kind of margins that we generate from that, then that would equate to a 25,000,000 market cap in a normalized world. So moving to two or three more acquisitions on top of that, the timeframe could be within two years. Fantastic, thank you very much indeed. I must ask you now perhaps just to click on the Q and A tab, just to have a little look at the questions that have come through so far.

38:54 And if I may ask you just to read out the question and just give your verbal response where appropriate to do so, that'd be fantastic. Yeah, this is maybe one I could pass to you, Jim, which is the tab looks to have been a great acquisition with a mix of university news, social gossip and media. Any plans to organize more clearly on the website? Yes, thank you. Yeah, think really it's good question, and one of the things that we were really keen to do on bringing the brand in, was not to start making changes that weren't a real priority. So we definitely prioritized improving the commercial performance by the application of the graphene platform, which from a user's perspective is really invisible.

39:46 And also we know that a lot of the content on the site is consumed on an article by article basis, so users will come in either from search or from social media and read articles and then move on to subsequent articles. But we do think that there are potentially opportunities to maybe reorganise the site, but we've got some work that's going on in the background potentially around introducing some new content strands and we'll look to do that piece of work as one consistent piece. Okay, thank you. Another question was one of the earliest ones that came through, which is could you explain more about the graphene platform and what advantages it brings?

40:39 Simply put, graphene is our technology set up to optimize our approach on mobile. And that ranges from both user experience, optimizing the user experience to optimizing the advertising auctions that are taking place. So for anyone who's familiar with the technology side of the business, speed is all. And the fact that we can micro cash much of our content as it scales within the social media platforms means that it gets quicker and quicker to deliver. So if you can imagine a piece of content, I don't know, we're publishing around Harry and Meghan and we're the first ones out with it. As people jump onto that piece of content, instead of the servers straining for delivery, it begins a kind of level of micro caching from peer to peer in order that that content is served as quickly as possible to the user.

41:47 Now the benefit of that is obviously it gets into the user's hands much more quickly, But it also means there's more tension in the advertising auction that takes place. And it also means as a result of all those things happening quicker, then the site is effectively ranked better as we move forward. So graphene's performance is key to that, and that really encompasses all sides of our business. So from commercial to user consumption. There is another question around the implications of moving away from the BBC with the MASH report. I don't know if Jim you want to cover that? Yes, will. So as I mentioned, we're not in a position to announce anything just yet, but as I mentioned in the slides, the show I think was really really successful in terms of its transition away from a studio format into a more, more virtual environment, and considering that the production team needed to do that in very, very short order to not miss their transition date, I think it showed that the format is very, very flexible and it's a really talented team. So we produced the show with a company called Zepatron which is part of the Endymol Group and they are having discussions at the moment to see about a potential

43:18 new home for the show. And as I say, we're optimistic that we'll be able to announce something in the not too distant future. Thanks Jim. There's a quick question here about unique users. So monthly unique users have risen to 12,000,000. Could you give us a breakdown across the three brands? Approximately, we're talking about 1,500,000 unique users on the Daily Mash, about 5,500,000 on entertainment daily, and the other 6,000,000 sorry, the other 5,000,000 on the tab. If that's not too approximate, but obviously these these levels fluctuate from month to month.

44:12 There is another question about CPMs on entertainment daily in the tab. I can't give you the exact figures on those, but so far to say, Entertainment Daily generated in 2019 an average of £12 per thousand sessions. We would have grown that, or we certainly grew that in q three and four significantly last year, where their shape up for this year is significantly ahead of 2019. The tab at the same time won't reach that same level immediately, and it will take us time to build it. But it's trading at about 60% of the value of entertainment daily at the moment, and we'll look to close that gap as we move forwards.

45:14 There is a question about what are the management forecasts for 2021? I'm not entirely sure if I can answer that, but there will be, I think, a research note going out today or tomorrow, which will give some guidance. DJ, maybe a question for yourself. You mentioned profit on the tab. Is this gross or net? It's gross. It's the contribution to the event. Okay. Another question, do you have any technological developments planned for 2021?

46:07 Yes, we do. And whilst we're continually evolving the graphene platform, we've recently appointed a new developer to help us make some further moves within the business. One of the things that we did last year was develop our own video serving technology called the BOB Player in house, and that has enabled us to monetize our audience better with much greater viewability stats on the advertising experience that's being served. And for anyone who's not familiar with how advertising is traded, then viewability is a key metric ensuring that those numbers are as high as possible.

47:01 The viewability on the Bob player experience is running about 85%, which is significantly ahead of the market that runs at about fifty-fifty 5%. I think I'm running out of questions actually if I think you have pretty much covered all of those off. Look, thank you very much indeed for that. And of course, if any further questions do come through, the team will be able to review those and we'll publish those back out on the Investor Week company platform. James, if could just ask you for a final few words just to wrap up then on that basis before I redirect investors to give you some feedback. Yeah, thank you very much everyone for attending. A year ago we were, I suppose, looking at a bright future.

47:57 But COVID came along and interestingly COVID came along and really sort of changed our destiny, think, and changed it in a really, really positive way. I suppose the fact that we are forward looking in our approach has enabled us to really capitalize on the changes that have been accelerated in the past twelve months. And the fact that we delivered a profit in the last twelve months, I think gives us a really really strong building block to take the business forwards and grow it towards a $2,550,000,000 market cap business. So hopefully with everyone's support, can achieve that and continue the journey and continue to make positive additions to the business as we move forwards.

48:45 So thank you very much for your time. Thank you and thank you to the DIGITALBOX team for updating investors today. Please ask investors not to close the session as you'll be automatically redirected for the opportunity to provide your feedback. If you've accessed the meeting from our website, the feedback page will appear in front of you. But if you've accessed the meeting via the link sent to you in the email, you'll simply be asked just to log back in. Please just take a couple of moments to do so. Your feedback is greatly appreciated by the company. On behalf of the management team of DIGITALBOX PLC, we'd like to thank you for attending today's session. That concludes today's event. Thank you.