Shares of Centaur Media Plc (AIM:CAU) dropped 21% after it sounded the earnings alarm as it cited ongoing challenges in the marketing sector, driven by macroeconomic conditions for its woes.
These headwinds have led to reduced marketing budgets among blue-chip customers, impacting revenue and profit in the second half of 2024.
The company's Xeim division, particularly its Econsultancy and Oystercatchers brands, has been significantly affected.
While growth areas such as The Lawyer and Marketing Week subscriptions are performing well, overall revenue is expected to fall to £34 million in 2024, with an EBITDA margin of 15%, below analyst expectations.
Centaur remains cautious about near-term recovery but highlights its strong cash position and commitment to its long-term strategy.
In the opening exchanges, the stock was off 6.5p at 24p.