APN Outdoor just cut forecasts for billboard ads and its share price is getting destroyed

Photo: NZ Defence Forces / Getty (File)

Shares in APN Outdoor fell hard after the billboard adverting group downgrade expected earnings.

A short time ago, the shares were down a third to $5.50.

The company posted a 49% rise in half profit to $19.5 million on a 10% rise in revenue to $150.6 million. The company also declared a fully franked interim dividend of 6.5 cents a share, up 44% on last year

However, APN Outdoor says it’s seen a significant reduction in market activity for the September to November period due, at least in part, from a combination of an extended national election process closely followed by the Olympics.

The company says it expects a revenue increase for 2016 in the range of 6% to 8%.

However, it now sees full year EBITDA (earnings before interest, taxes, depreciation, and amortisation) of between $79 million to $84 million, down on the previous guidance of $84 million to $88 million.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.