Kit Falls 2nd Day After Saying It Will Record Loss on Sale
Kit Digital Inc. (KITD), a maker of online- video software, fell for a second day after saying it expects to record a loss on the sale of its content business.
The stock retreated as much as 3.6 percent and last traded 1.4 percent lower at 88 koruna by the end of trading in Prague.
Kit sold its unit to Content Solutions International NV in an $18.8 million deal, the company said in a statement late yesterday. The company “expects to book a loss” on the sale, and said the size is dependent on accounting and calculations that aren’t currently complete, Kit said in a separate regulatory filing.
“The sale of non-core assets was mentioned during the first-quarter results and it should not be a surprise,” analysts led by Milan Vanicek at J&T Banka AS in Prague said in an e-mailed note. “However, booking an unspecified loss might cause a negative market reaction. We consider the news negative.”
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