Focusrite shares tumble on weak content creation market

Focusrite shares dive after weak content creation market hits revenue.

Focusrite shares tumble on weak content creation market
Focusrite TUNE

Music equipment maker Focusrite (LSE:TUNE) saw its shares plummet 27% this morning after revealing lower-than-expected revenue forecasts. The company now expects full-year revenue to be at least £155 million, down from £178.5 million the previous year.

This downward revision stems from ongoing challenges in the content creation market, particularly in Asia, which has experienced 18 months of continuous decline. Focusrite attributed the weakness to macroeconomic issues and rising component costs.

However, the company's Audio Reproduction division, catering to professional studios and live sound engineers, remains a source of strength. Focusrite reported "strong overall performance" in this segment for the six months ending February 29th.

Despite some positive signs, Focusrite acknowledges the headwinds in the content creation market, impacting sales of high-end instruments. This aligns with industry data for the synthesizer market.

Focusrite maintains optimism for its long-term prospects, believing it's well-positioned for future growth when market conditions improve. However, investors remain concerned, with Focusrite shares down a significant 52% year-to-date.

Subscribe to Investomania for more Focusrite news and updates.