Metrodome plunges after profit warning

Shares in Metrodome plunged after it warned operating profit for the year to 31 December 2011 is expected to be materially below current market expectations.

"Despite the group's trading divisions Metrodome Distribution and Hollywood Classics trading in line with expectations, Target Entertainment, the group's TV distribution business, has experienced tougher than expected trading conditions in the final quarter of the year," the group explained in a company statement.

"As in previous years Target expected to generate most of its revenue in the last six weeks of the calendar year but has recently been unable to achieve forecast revenue for its TV product due to a marked slowdown in sales in European markets," it added.

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Chairman Mark Webster commented, "Despite the difficult market conditions, we have been satisfied with the performance of Metrodome Distribution and Hollywood Classics which has integrated well into the group since its acquisition in August."

"However, due to the fact that a majority of Target's revenues are derived from international markets we have seen its performance materially affected by the adverse macro-economic conditions in Europe. Many of our customers are either not buying product at all or delaying decisions on any new purchases which has led to a worse than expected financial performance."

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