Outdoor advertising company oOh!media has flagged its financial year 2019 earnings will be about $27 million less than anticipated, blaming a weak second half that saw a "significant decline in overall media advertising spend".
oOh! previously told the market it anticipatedearnings before income, tax, depreciation and amortisation of between $152 million and $162 million for the 2019 fiscal year.
However, in an announcement to the market on Friday morning, that was revised down to expected earnings of between $125 million and $135 million. A $27 million dollar difference between the two forecast boundaries.
Market reaction to the announcement was swift, with the share price plummeting40 per cent in opening trade, down to $2.42 at 10:45am AEST.
"In line with the challenging market conditions being experienced by the wider media market, the Companys advertising bookings for the third quarter of 2019 experienced a sharp decline compared to the bookings on-hand at the same time last year," the company said.
The advertising company's earnings are typically weighted to the second half of the year and the fourth quarter in particular.
While the company said fourth quarter bookings were an improvement on the third quarter, the improvements was "less than anticipated" and "insufficient to offset the significant decline currently being experienced in the third quarter".
oOh! will report its half year results on August 26.
They expected to report revenue of $304.8 million for the half year ended June 30, a five per cent increase on a pro forma basis on the prior corresponding period.
However, underlying earnings before income, tax, depreciation and amortisation was set to fall two per cent on a pro forma basis, down to $56 million.