Profit warning sends share price plunging.
Investors spooked by a corporate warning that Perform Group's 2013 earnings could be substantially lower than anticipated sent the share price spiralling southward Thursday.
The digital sports media company saw its share price drop over fifty percent as a result of the profit warning, occasioned by weak advertising and sponsorship results in German and US markets particularly during Q4, where the company had hoped for a major percentage of its revenues.
Perform expects turnover to sink some 6 percent, seriously impacting earnings.
In an attempt to right the ship, management announced a cost review across all aspects of the business.
CEO Simon Denyer said in a newspaper interview that Perform needs to adopt a more cautious and prudent approach, but would fundamentally change the overall strategy on international growth and acquisitions.
"There’s nothing broken about the overall strategy and the business plan,” he said.