• Marketplace revenue down 11.5% to $230 million
• Gross profit margin improved to 43.8% from 41.6% in 1HFY24
• Operating expenses reduced by 7% compared to 1HFY24

Articore Group Ltd reported a 11.9% decline in total revenue to $266.6 million for the six months ended 31 December 2024, with marketplace revenue down 11.5% to $230 million and artist revenue down 14.6% to $36.2 million. The company reported a loss after tax of $1.9 million, compared to a profit of $5 million in the prior corresponding period. Articore implemented a major restructure in 1HFY25, combining the operations of the Redbubble and TeePublic marketplaces to drive synergies and reduce costs. This enabled the group to deliver its highest first half gross profit margin to date of 43.8%, up from 41.6% in 1HFY24. Operating expenses were also 7% lower during the half compared to the prior corresponding period.Redbubble's marketplace revenue declined 20% due to a weak consumer environment and a decline in the proportion of revenue from organic sources. However, Redbubble improved its approach to paid marketing and implemented initiatives to enhance the site experience, which drove a 330 basis point improvement in gross profit margin to 44.3%.TeePublic delivered a sound performance, with marketplace revenue in line with the prior corresponding period. TeePublic drove a 2% increase in gross profit and an 80 basis point uplift in gross profit margin, primarily through securing more favourable pricing arrangements with third-party fulfillers and reducing shipping costs.Looking ahead, the group expects the competitive environment to remain challenging. It will remain focused on optimising unit economics, maintaining cost discipline and maximising synergies across the group. The group continues to expect to deliver positive underlying cash flow in FY25, subject to any incremental investment in its new Dashery platform in the second half.

The group continues to expect to deliver positive underlying cash flow in FY25, subject to any incremental investment in its new Dashery platform in the second half.

The group expects its competitive environment to remain challenging. It will remain focused on optimising unit economics, maintaining cost discipline and maximising synergies across the group.