LONDON (Alliance News) - Digital advertising firm Crossrider PLC was one of the worst performers on AIM early Tuesday after it said it now expects its 2016 earnings and revenue to be around a quarter lower than they were in 2015.
Shares in Crossrider were down 27% at 27.00 pence Tuesday morning.
Crossrider said that structural changes in the markets in which it operates have "negatively impacted" its outlook for future trading, and mobile revenue growth rates have "declined significantly", particularly in mobile subscription campaigns, which have been hit by increased regulation in some countries.
Additionally, revenue from monetising web applications through advertising is in decline, Crossider said, at a rate with is "significant and notably faster than previously expected".
Crossrider now expects earnings before interest, tax, depreciation and amortisation and revenue to be around 25% lower than the USD10.1 million Ebitda and USD84.6 million revenue it reported for 2015.
"Despite these challenging headwinds, the business remains operationally cash generative, the balance sheet remains strong with USD70 million of cash, and the board is confident in the group's ability to execute accretive acquisitions," the company said.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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