Mecom's profit warning pushes share prices down

European newspaper publisher Mecom's share prices have plummeted 53 percent after issuing its second profits warning in the past month and a half. Its share price dropped by 78p to 68p - its lowest ever, MediaGuardian reported.

The publisher, which has operations in the Netherlands, Denmark and Poland, told MediaGuardian it expects earnings before interest, tax, depreciation and amortisation to be down €14 million year-on-year in the first half to about €52 million.

Mecom's previous profit warning was issued in April after revenues for the first quarter of 2012 dropped by 12 percent. It also warned investors of expected downgrades in 2013 and 2014.

“We were expecting declines year-on-year in the Dutch market anyway, but the sharpness of the declines has caught everyone by surprise,” Patrick Yau, an analyst at Peel Hunt, told Financial Times.

Image: MediaWeek