Videndum PLC (LSE:VID) shares were knocked 17% lower on Monday in response to a warning from the London-listed media company that trading conditions will remain tough in the near term.
In a trading update, Videndum said a market recovery in the media sector is moving “slower than expected”.
As a result, Videndum is pushing forward with some cost-saving measures, including “improving operational efficiency”.
Although job losses were not specifically mentioned, Videndum is squashing its three existing divisions into two- Videndum Production and Imaging will focus on the broadcast and imaging segments, while Videndum Creative Solutions will serve the cinema and audio markets.
Executive chairman Stephen Harris said management processes and cost discipline “require strengthening”.
Hollywood strikes severely impacted Videndum’s revenues in 2023, leading to a loss-making period for the content specialist.
While depressed market conditions have exacerbated Videndum’s struggles, Harris noted that “gradual” improvements should support the business in 2025.
Videndum expects full-year revenues to total £280 million.
The stock was last seen swapping for 213.66p per share.