Dianomi PLC shares dropped on Tuesday, after it warned that it expects to miss full-year earnings targets.

Shares in the London-based digital advertiser were down 13% to 110.00 pence each in London on Tuesday around midday.

Dianomi said it expects revenue in 2022 to be in line with last year. In 2021, it reported revenue of £35.8 million.

It noted that the company is currently working with 387 premium publishers.

However, Dianomi said that its decrease in gross margins, alongside its investment in developing the talent base of the business to support future growth, means that adjusted earnings before interest, tax, depreciation and amortisation are expected to be lower than consensus market expectations, at around half of that of the prior year. In 2021, the company reported adjusted Ebitda of £3.1 million.

‘New advertiser spend in the second half of the year has not grown as anticipated, with the changes to the economic and political landscape over the course of 2022 creating a general global slowdown,’ Dianomi explained.

It added that, due to macroeconomic headwinds and privacy legislation, short-term industry digital ad spending forecasts have been lowered.

Looking ahead, Dianomi expects total total US digital ad spend to grow in 2023. It also anticipates privacy changes including the deprecation of cookies to benefit the company.

Chief Executive Rupert Hodson said: ‘Though we are disappointed that the growth originally forecast for this year has not materialised, we are encouraged by the stickiness of both our advertiser and publisher base and the new names which have joined our platform this year. The market environment is challenging, but we are confident that the quality of our platform as well as its contextual nature will prove to be an advantage in light of the expected changes in privacy legislation.’

Copyright 2022 Alliance News Ltd. All Rights Reserved.