Digicut Production and Advertising PLC reduced its losses significantly in the first half of 2026 after recording stronger revenue and a sharp decline in operating expenses.

The Ghana Alternative Market-listed advertising company reported revenue of GH¢387,035 for the six-month period ended June 30, 2026, representing a 40.8% increase from the GH¢274,825 recorded during the same period in 2025.

Despite the improvement in revenue, Digicut remained loss-making. However, its loss after tax narrowed considerably from GH¢303,848 in the first half of 2025 to GH¢130,392 in 2026. This represents a reduction of approximately 57.1%.

Higher Revenue Supports Gross Profit Growth

Digicut’s cost of sales increased to GH¢215,070, compared with GH¢118,075 in the previous year.

As a result, gross profit rose by 9.7% from GH¢156,750 to GH¢171,965.

However, the company’s gross profit margin declined from approximately 57.0% in the first half of 2025 to 44.4% in 2026. This suggests that the cost of delivering its advertising and production services increased faster than revenue during the period.

Operating Expenses Fall Sharply

One of the biggest improvements in Digicut’s results came from operating expenses, which declined by 42.2% from GH¢523,008 in 2025 to GH¢302,358 in 2026.

The reduction in expenses helped the company cut its operating loss from GH¢366,258 to GH¢130,392.

Digicut did not report any other income during the period, compared with GH¢62,410 recorded in the first half of 2025. It also recorded no finance costs or income tax expenses in either period.

The company’s basic and diluted loss per share improved from GH¢0.0026 to GH¢0.0011.

Cash Position Improves

Digicut generated GH¢69,966 in net cash from operating activities during the period, up from GH¢21,521 in the first half of 2025.

After spending GH¢2,981 on non-current assets, the company recorded a net increase in cash of GH¢66,985.

Cash and cash equivalents consequently increased to approximately GH¢82,884 at the end of June 2026, compared with just GH¢1,232 in June 2025.

The company’s stronger operating cash flow was supported by net working capital movements of GH¢192,500.

Total Assets and Equity Decline

Digicut closed the period with total assets of GH¢4.75 million, slightly below the GH¢4.88 million reported in June 2025.

Current assets stood at GH¢4.21 million, while non-current assets declined from GH¢609,275 to GH¢544,842.

Related-party receivables remained the company’s largest asset, amounting to GH¢2.98 million. Trade and other receivables also increased from GH¢271,031 to GH¢421,412.

Short-term investments, however, declined from GH¢804,429 to GH¢529,120.

Total equity fell by 18.4% from GH¢1.90 million to GH¢1.55 million, mainly due to the company’s accumulated losses.

Digicut’s income surplus account deteriorated from a negative balance of GH¢1.20 million in June 2025 to a negative GH¢1.55 million in June 2026. Stated capital remained unchanged at GH¢3.10 million.

Outlook

Digicut’s first-half results show progress in revenue generation, cost management and operating cash flow. The company reduced its losses by more than half while significantly improving its cash position.

However, rising production costs, declining gross margins and the continued accumulation of losses remain important concerns. Digicut will need to sustain revenue growth while improving cost efficiency to return to profitability and strengthen shareholder equity.