The head of the online marketplace Redbubble says the business has not adapted well to the post-Covid trading environment as sales soften.

For the year to June 30, the company’s marketplace revenue (MPR) reached $467.5 million, down 3 per cent with an EBITDA loss of $40.7 million, decreasing 263 per cent.

Cofounder, CEO and MD of Redbubble, Martin Hosking, said since his return to management in March, he has carried out a detailed review of the group’s operations, financial performance and operating environment.

“This process reinforced my view that the group consists of two well-established marketplaces, with strong unit economics. It also highlighted that the group did not adjust quickly enough to an evolving environment in the post-pandemic world.”

During this period, the business has implemented a number of cost-saving measures which reduced its operating expenditure by approximately $45 million on an annualised basis.

“As we look ahead, we remain cautious and expect market conditions to remain challenging. As a result, we are focusing on what we can control ensuring we are operating as efficiently as possible and maintaining strong cost discipline,” said Hosking.

The company expects market conditions to remain challenging in the near term, impacting on margins.