Redbubble's (ASX:RBL) mask sales not enough to boost revenue growth

Company News

by Lauren Evans

As flagged in previous outlook statements, Redbubble (ASX:RBL) expects negative growth due to the cycling of strong prior years, particularly in mask sales. Today they’ve given the same warning to prepare investors for financial year 2022 revenue's being lower.

Gross total valuation year on year has fallen 14 per cent to $381 million for the first half of financial year 2022. The marketplace revenue has also tanked 18 per cent to $288 million. 

However, if masks sales were taken out of the picture, marketplace revenue would be $283 million, down 5 per cent. Meanwhile gross profit is down 25 per cent to $108 million, while earnings before, interest, taxes, depreciation and amortisation has tumbled 84 per cent to $8 million.

Key factors that drove the margins impact include strong competition in the second quarter, particularly through the peak holiday period, impacted organic demand, and increasing paid acquisition costs.

The completed financial statement will be provided at the scheduled half year results next month. 

Shares in Redbubble (ASX:RBL) are trading 21.7 per cent lower at $2.34. 

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