Roularta Drops More Than 10% on Profit Warning: Brussels Mover

Roularta Media Group NV (ROU), Belgium’s biggest magazine publisher, fell the most in more than six months in Brussels trading after saying lower advertising revenue in the second quarter may cut earnings by as much as a 25 percent.

The shares fell as much as 10.7 percent in Brussels trading and traded at 14.12 euros at 9:50 a.m. local time, down 10.3 percent on the day. The shares are down 3.3 percent so far this year, trading at the lowest since Jan. 9.

The lower ad revenue could reduce Roularta’s earnings before interest, taxes, depreciation and amortization by 20 percent to 25 percent, the company said today in an e-mailed statement. Roularta blamed “uncertainty” on financial markets surrounding Greece and Spain, as well as the European Football Championship, which is having a “negative effect on advertising for June.”

“The fact that advertising revenues are under pressure does not come as a surprise; the apparent harshness at which they are coming down is a surprise,” Siddy Jobe, an analyst at Banque Degroof SA in Brussels, wrote in a research note. “Now it seems that printed advertising has further dropped, while also TV revenues are tumbling.” Degroof lowered its recommendation on Roularta to hold from accumulate on the profit warning.

Roularta said it anticipates an improvement after the summer holidays and forecasts “spending rising again from September onwards.”

To contact the reporter on this story: Andrew Clapham in Brussels at

To contact the editor responsible for this story: Jerrold Colten at

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