Shares in Audioboom (LSE: BOOM), the London-based podcast provider, took a sharp nosedive, plummeting by 25% to 211.93 pence, in response to the company’s most recent trading update.
Audioboom announced that it expects to report lower yearly revenue and profit than previously anticipated, citing ongoing challenges in the advertising markets.
The FTSE AIM All-Share listed firm expressed that the advertising markets have remained challenging “for longer than anticipated,” resulting in a downward revision of its revenue and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) forecasts.
Nonetheless, Audioboom remains optimistic about the future and believes that the markets will eventually improve. The company affirmed its “prime position” to seize opportunities when the conditions become more favourable.
In light of the persisting challenges, Audioboom revealed a change in its approach to calculating minimum guarantee offers for podcast partners. This adjustment reflects the company’s adaptability to the evolving market dynamics while maintaining its commitment to sustaining growth.
Despite the adversity, Audioboom reported continued positive performance in key operational indicators, including “good” like-for-like revenue and growth. The company expects this strong performance to persist throughout the second half of the year.
Audiobook shares have declined 78% over the past 12 months.
