Future, the media group behind CVG, Edge, OPM and OXM, has today issued a profit warning, stating to investors that profits will be “significantly below” expectations. As a result; the group’s share price tumbled 30%.
The Telegraph reports that Mark Wood, chief executive of Future cited the late release of PS4 and Xbox One as a key cause of the slump.
He added, “We had anticipated more advertising around games launches after the new consoles were launched, but there have been some delays around those launches which has delayed the game advertising spend. In some areas there was also a decline in print sales, which we always anticipate.”
The executive added that he firm would continue to look at potential cost-cutting measures down the line, following the culling of 55 job roles in September.
MCV adds that at year’s end; Future’s shares sat at 16.30p, and had decreased to 13p before the profit warning was issued. Since then the share value has dropped to 8.70p.
We’ll have more on the matter as it transpires.