LONDON (Alliance News) - Shares in Ebiquity PLC fell almost 25% Thursday after the media and marketing consultancy warned 2018 operating profit will be materially below current market expectations.
Shares in the company were down 24% at 50.04 pence each Thursday.
The profit warning was attributed to a slowdown in the Advertising Intelligence business, underperformance in US Digital Analytics, and delays in closing recent Media opportunities in Germany.
"Despite the revenue delays in Germany and challenges in the US Digital Analytics practice, the Media, Analytics and Tech practices continue to make strong progress in most territories, with overall revenue growth in line with expectations at circa 8% with particularly encouraging performances in the UK & Ireland and French markets," the company said.
It expects to record overall organic revenue growth of around 2% for 2018, having reported revenue of GBP87.4 million in 2017.
Ebiquity also said it has secured final clearance from the UK's Competition & Markets Authority for the sale of its advertising intelligence division to Nielsen Media Research Ltd, adding the disposal will result in an improved net debt position.
In February, Ebiquity agreed to sell the business for GBP26.0 million in cash to Nielsen.
The anti-monopoly regulator, in its merger clearance statement, said although Nielsen and Ebiquity sell advertising intelligence products to UK and international customers, the design of their products, how they are used, and the fact very few customers switch between the companies means they do not closely compete.
Ebiquity (EBQ)