Independent News & Media shares fell by as much as 21% on Wednesday after Ireland's largest newspaper group warned on its full year profit expectations.

The owner of Ireland's highest selling daily and Sunday newspapers cited a decline in circulation, readership and advertising revenues, lower than expected growth in digital revenues, ongoing uncertainty arising from Brexit and increased costs arising from legacy libel awards for the profit warning.

Shares in the group fell to a three-and-a-half year low of 0.10 euros before closing 15% lower at 0.11 euros.

The group said that circulation continued to fall by around 7% year-on-year, with uncertainty over Britain's exit from the European Union expected to result in a drop in newspaper advertising revenue of around 12% year-on-year.

Digital revenues are forecast to grow, but at a much lower rate than previously envisaged, it added.

INM said it therefore expected its full year profit before tax would be below market consensus. Two analysts surveyed by Reuters before the trading update had forecast a 9% year-on-year fall in profits to 38 million euros.

Following the profit warning, Merrion Stockbrokers said it would no longer have a recommendation on INM, whose Group Chief Executive Robert Pitt said on Wednesday that the group remained operationally robust and cash generative. (Reuters)

Source: www.businessworld.ie