Maiden issues shock profit warning
Thursday 03 September 1998
Shares in Maiden halved, plunging 219p to 212.5p, after the group said sales in the third quarter had failed to recover after suffering a slowdown during the World Cup.
The warning sent tremors through the rest of the media sector, knocking shares in companies with a heavy exposure to advertising spending. Magazine publisher EMAP shares dropped 74p to 940p and Capital Radio shed 16p to close at 574p.
Ron Zeghibe, Maiden's chief executive, said advertising had dried up during the World Cup. "Advertisers looked at the high rates being charged by television and just said, `We're not going to spend'," he said.
"It may be that outdoor advertising is a leading indicator for what's going on in the sector," said one analyst. "But it may also be that when budgets are cut it's the marginal media that suffer."
Indeed, Johnston Press, the regional newspaper group which depends heavily on classified advertising, yesterday sounded an upbeat note about prospects for the year.
But Mr Zeghibe insisted that the outlook for national advertising was gloomy. "I'm talking to media planning and buying agencies and they're all saying the same thing," he said. Roughly 95 per cent of Maiden's advertising comes from large national accounts.
And Mr Zeghibe said the stock market had overreacted to the bad news. "Either the share price recovers or we might as well take the company private," he warned. Maiden's management team control 73 per cent of the company.
The company insisted it would not be cutting its capital expenditure plans designed to strengthen its market position.
- 1 Humans of New York image of crying gay teen receives best response from Ellen DeGeneres
- 2 What supermodels really think about posing in the nude
- 3 People all over the world are getting semicolon tattoos to draw attention to mental health
- 4 Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
- 5 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
Humans of New York image of crying gay teen receives best response from Ellen DeGeneres
Greece debt crisis explained: A history of just how the country landed itself in such a mess
Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
Isis schoolgirl Amira Abase who fled London to join terrorists in Syria mocks victims of Tunisia massacre
Father faces deportation to Thailand after 27 years in Britain for two 'stupid crimes'
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...