LONDON (ShareCast) - (Sharecast News) - Shares in Audioboom Group plunged on Friday, after the podcast specialist warned on profits, despite the genre's enduring popularity.
Updating on current trading, the Aim-listed firm said it had seen good year-on-year growth in both underlying revenues and key performance indicators, which it expected to continue into the second half. In May, a record 135m podcasts were downloaded globally, it noted.

However, it also found advertising markets had remained "challenging" for longer than expected, and as a result, revenues and adjusted earnings before interest, tax, depreciation and amortisation for the current financial year are now expected to miss forecasts.

As at 1145 BST, shares in Audioboom - which in 2022 reached highs of more than 2,200p - had lost a quarter of their value, at 211p.

Danni Hewson, head of financial analysis at AJ Bell, said: "Only those living under a rock will have been ignorant to the podcasting boom of the past five years.

"Hype has since turned to reality, with [Audioboom's] share price crashing down as a key source of earnings has disappointed and investors question the edge [it] has on other podcast platforms.

"The advertising market continues to be weak as corporates watch their pennies for fear of an economic downturn.

"In strong economic conditions, Audioboom should in theory thrive thanks to greater advertising income, but it needs to show that its business can be profitable in more uncertain times. Until there is proof, it could be a tough ride for the company on the stock market."

Audioboom is due to publish numbers for the six months to 30 June later in July.

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