LONDON (Alliance News) - Ten Alps PLC said on Thursday slower than planned progress in the turnaround of its publishing division meant it was now expecting its earnings before interest, deterioration and amortisation to come in below current market expectations for its full financial year to the end of June, but that it was still expecting to return to profitability in the following financial year.
The television and multimedia content producer saw its shares plummet on Thursday morning after it said its trading for the first half to the end of December was below expectations. Ten Alps shares were down 18% at 1.44 pence on Thursday morning, one of the worst performers in the AIM All-Share.
The company said while it expected to achieve revenue broadly in line with market expectations, its earnings before interest, deterioration and amortisation would be lower than expected, but added the revenue pipeline for the second half is of sufficient scale to allow the company to move from loss to material profit at Ebitda level.
The company said its publishing division had suffered from slow advertising sales and slower than planned progress in its turnaround in the first half of its financial year, while its television division was hit by delays in programme commissioning.
However, Ten Alps said the television division is still expected to perform strongly, boosted by its Reef business, and achieve an annual growth of more than 20% on a comparable basis.
It expects its half-year results to be published on March 8.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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