Est Media Q2 losses rise as revenue plummets
Hungarian media company Est Media sustained after-tax losses of HUF 311.5 million in the second quarter of 2011, up from after-tax losses of HUF 288.4 million in Q2 of 2010, according to the company’s consolidated, unaudited IFRS report published late on Thursday.
Est Media had revenue of HUF 638.1 million in the second quarter of 2011, down 30.7% yr/yr.
The company had after-tax losses of HUF 517.1 million in the first half of 2011, compared to after-tax losses of HUF 440.4 million in H1 of 2010, on revenue of HUF 1.19 billion in the first six months of 2011, down 26% from the same period in 2010.
Est Media attributed its declining revenue to the termination of the company's radio-station operations, the extraordinary high 2010 base of the company's EGMPrint unit and declining turnover from its EGMIndoor advertising and EGMOnline units during the period.
In June, shareholders of Est Media unanimously approved a reorganization plan to be carried out in Q2 and Q3 of 2011 that aims to put the group in the black at operating level, excluding the event unit, in the second half of the year.
The plan counts the event unit, which includes festival organizer Sziget, among the activities Est Media will retain, placing the group's program guide publisher and online media unit among activities that will be retained, but that must be restructured. The group's concert manager is placed among "insignificant activities" in the plan, while the EMGIndoor unit was put in the "not necessarily to be retained" category.
Est Media is an A-category issuer at the Budapest Stock Exchange.
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