- Wednesday, October 16, 2024
Shares of Audioboom Group experienced a significant decline on Wednesday following the announcement of a first-half pretax loss. The company attributed this loss to a decrease in revenue resulting from the departure of the popular true-crime podcast "Morbid" from its platform. As a result, Audioboom's board has decided to review its dividend policy for the years 2024 onwards.
At 0701 GMT, shares were down 36.50 pence, or 19%, settling at 153.50 pence.
Originally, the board had planned to implement a progressive dividend policy and make its inaugural payout this year. However, due to expected performance levels in 2023, the policy will be reevaluated for the upcoming years.
Audioboom stated that advertising markets in its primary territories experienced a significant downturn in the middle of 2022 due to global macro-economic challenges. These unfavourable conditions have persisted into 2023.
Nevertheless, the company has been able to make notable advancements in its business operations and is well-positioned to fully leverage future improvements in the advertising market.
For the first six months of this year, Audioboom reported a pretax loss of $10.6 million compared to a pretax profit of $629,000 during the same period in 2022. Revenue dropped to $31.8 million from $40.9 million in the previous year, mainly due to the departure of the "Morbid" podcast from the platform.
"Our ongoing refinement and adaptation of our model will set us up for further success, which will become evident in the second half of 2023 as we regain positive growth momentum," stated Chief Executive Stuart Last.
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