Vocus shares are getting destroyed after a profit warning

Mount Sinabung volcano in Indoensia. Tibta Pangin/AFP/Getty Images

Vocus shares fell sharply after the telco downgraded revenue and profit forecasts.

A short time ago, the shares were down almost 25% to $2.53. The share price has almost halved over the last 12 months.

In a presentation to the Macquarie Australia Conference in Sydney, CEO Geoff Horth downgraded revenue to $1.8 billion from $1.9 billion after reassessing the cash flow from a number of projects.

Underlying EBITDA is now expected to be between $365 and $375 million compared to guidance of $430 to $450 million. Underlying net profit after tax is now expected to be in the range of $160 million to $165 million compared to guidance of $205 million to $215 million.

In February, Vocus posted a net profit after tax of $47.2 million from revenue of $888.2 million.

The company has been growing via a series of acquisitions, including M2 and Nextgen.

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