Prime Media has withdrawn its full-year earnings guidance for 2020 as the coronavirus pandemic creates uncertainty in the market.
The media company provided the update this morning, saying that the already difficult conditions in regional advertising have “softened considerably” due to coronavirus.
Categories such as travel and tourism, entertainment, insurance and retail are being impacted.
The media company says local direct advertising revenue, which was previously reported as more resilient, is also being impacted by cancellations in categories such as event promotions.
“Regional advertising markets are experiencing unprecedented trading conditions and forecasting is extremely difficult at this time,” says CEO Ian Audsley.
“We are encouraged by both Federal and State Government initiatives to stimulate regional economies, but importantly time is of the essence.”
Prime also notes that impacts are also expected to be felt as a consequence of uncertainty in relation to the availability of broadcast content in the coming period.
“As a result of the uncertain trading environment, Prime is not in a position to provide an earnings outlook at this time and accordingly is withdrawing its full-year earnings guidance for the 2020 Financial Year,” the statement says.
“Prime will provide a market update as the impact of COVID-19 on regional advertising markets becomes clearer.”
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