LONDON (Alliance News) - Litebulb Group Ltd said Wednesday its full year earnings before interest, tax, depreciation and amortisation will fall short of expectations, as a result of two of its divisions experiencing a difficult fourth quarter.
The branded product developer said that its Go Entertainment division has been hit by a "significant decline" in its core markets, by as much as 40% in some DVD categories.
The company has opted to close its US operations, after having opened its first US office at the beginning of 2015, as it has failed to deliver anticipated results. Instead, the company will focus on strengthening its ties with UK retailers.
Litebulb expects a shortfall in revenue versus expectations of around GBP3.3 million. However, it said the rest of its divisions are trading in line with expectations, and it still expects to report a positive adjusted Ebitda figure for its full year.
"Whilst it is disappointing that two divisions have not performed as expected we are still expecting to report a positive adjusted EBITDA figure for the year. I am of course pleased with the performance to date of our other four businesses and look forward to presenting the full year result in due course," said Interim Chief Executive Howard Partington in a statement.
Shares in Litebulb were down 38% at 9.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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