Time Inc. shares got slammed on Thursday, falling 8.4 per cent after CEO Joe Ripp lowered 2016 revenue guidance to flat to a 1.5 per cent gain.
That’s down from earlier guidance of a 1 per cent to 5 per cent gain.
But a dramatic double-digit dive in print-ad revenue in the second quarter — from which the publisher of People, Time, Sports Illustrated and InStyle derives more than 70 per cent of its ad revenue — forced Ripp to lower the outlook.
The stock tumbled to $14.33 (£10.91) a share.
Total revenue fell 1 per cent, to $769 million (£585.76 million). Wall Street had been expecting at least $782.5 million (£596.21 million), according to Thomson Reuters.
Print ad revenues slipped 12.8 per cent. The smaller digital ad revenue jumped 65 per cent. Much of that hike was attributable to the acquisition of internet marketing service Viant in February. Without Viant, digital ad dollars would have risen only 10 per cent.Risk Warning:
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