Independent News and Media shares fell sharply as the company issued a profit warning.
INM closed 14% lower in Dublin as the company said it would see a "material reduction" in its full year pre-tax profit compared to previous guidance "driven by the challenges the media industry and INM continue to face".
The company said its advertising revenue would be 7% lower year-on-year. Its ad revenue from newspaper and magazines will be down 12% but INM also warned that growth in revenue from digital advertising has been weaker than anticipated. Part of this is due to "uncertainty over Brexit," it said.
INM also cited costs associated with various defamation actions including "legacy libel cases" as having a material impact on this year's results. In addition it has been hit by the cost of undertaking an independent review and meeting the requirements of the Office of the Director of Corporate Enforcement.
This relates to a protected disclosure made by INM chief executive Robert Pitt in relation to a proposed acquisition of radio station Newstalk by the company. Mr Pitt clashed with INM chairman Leslie Buckley over how much the company would have been prepared to pay for Newstalk, which is owned by INM shareholder Denis O'Brien's Communicorp group. The acquisition did not proceed but Pitt later made a submission to the ODCE, which is carrying out an investigation.
