Telegraaf Media Groep NV, the publisher of the largest Dutch newspaper, fell the most in a year after the company scrapped its full-year profit forecast.
The shares dropped as much as 11 percent, the biggest decline since Aug. 5, 2011. The stock traded 8.2 percent lower at 7.80 euros as of 10:12 a.m., giving the Amsterdam-based publisher a market value of 373 million euros ($461 million). The company said it’s abandoning the forecast that 2012 recurring earnings before interest, taxes, depreciation and amortization would decline 20 percent to about 50 million euros.
The publisher said the revision was due to the print and online businesses’ “highly disappointing” advertising sales in the first half and the “rather gloomy” economic outlook in the Netherlands for the rest of the year. The company won’t make a new forecast as it’s unsure how ad revenues will develop.
“With advertising markets still weak, we don’t expect a strong recovery in results any time soon,” Johan van den Hooven, an Amsterdam-based analyst at SNS Securities, wrote in an investor note. Van den Hooven has a hold recommendation on Telegraaf Media Groep.
First-half net income fell to 9.17 million euros from 14 million euros, while sales dropped to 282 million euros from 284 million euros.