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Perform Group Falls Most in Two Years on Profit Warning

Dec. 12 (Bloomberg) -- Perform Group Plc fell the most in more than two years after it warned investors that sales and earnings levels would miss its previous estimates as advertising and sponsorship markets deteriorated.

Full-year revenue will be about 6 percent below the company’s estimates for 2013, putting year-over-year sales growth at more than 35 percent, the sports and television rights company said in a statement today.

The reduced sales will “directly impact” adjusted earnings before interest, taxes, depreciation and amortization, the company said. The company’s cost of sales and overhead will be 7 percent higher than anticipated because of slower-than-expected integration of acquisitions. Perform is reviewing its costs across the business with a particular focus on its management, technology and operations functions.

“We are disappointed with the performance of the business in Q4 against our expectations and as a consequence this has an impact on our outlook for 2014,” Chief Executive Officer Oliver Slipper said in the statement. He said the issues that cropped up in the second half of this year are “unsatisfactory.”

Perform fell as much as 58 percent to 180.1 pence, the biggest drop since the company’s initial public offering in April 2011, and traded at that price as of 3:11 p.m. in London. The company’s market value slipped to 477 million pounds ($780 million.)

Perform said growth was slower in Germany and the U.S. Revenue in 2014 will also miss its estimates by 6 percent, and is forecast to increase by about 20 percent.

Sales Prediction

Analysts in a Bloomberg survey predicted sales of 214.5 million pounds ($351 million) this year and 266 million pounds in 2014, according to average estimates. Ebitda was forecast at 47 million pounds and 69.7 million pounds.

Perform Group this year bought Voetbalzone BV, a Dutch sports website, for 2 million euros ($2.75 million) and Opta Sports Data Ltd., which provides soccer statistics to media and betting industries, for 40 million pounds.

The company had cut its Ebitda estimate for this year by about 4 million pounds in November after some new business in technology and production didn’t materialize.

To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

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