News Column

Immedia To Miss Full-Year Profit Expectations On Revenue Delay

August 7, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - Shares in Immedia Group PLC dropped Thursday afternoon after the company said revenue in the first half of the year will be broadly the same as last year, while its operating profit for all of 2014 will miss market expectations

The bespoke digital music and entertainment channels said revenue in the six months to June 30 is at a similar level to the first half of 2013, with sales growth at a number of key customers offsetting lower equipment sales to other customers.

However, the company said that new contracts, which were expected to contribute to revenue growth in the first half, will only add to revenue in the second half of the year onwards.

"The combination of investments in new managers and delays in the start of new business revenues will result in operating profits for the year to 31 December 2014 that will be below market expectations," the company said.

Immedia shares were down 14% Thursday afternoon, trading at 20.00 pence, making them the third biggest faller on AIM.

The company said its balance sheet remains healthy. It said it will release its interim results in September.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Alliance News

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters