LONDON (ShareCast) - Online advertising company Marimedia warned its revenues will be "significantly" lower in 2015 due to structural changes in the media sector, sending its shares plunging on Thursday morning.
The group has decided to close its legacy display segment and move its business fully to focus on mobile advertising.

Digital advertising has been shifting away from display adversiting, the company explained, with advertising on mobile devices taking over.

As a result, Marimedia has been investing in its mobile division, with the help of funds raised during its initial public offering and the acquisition of Taptica, a business focused on data solutions for mobile and video advertising.

However, due to the changes to the display business, the company expects revenues to be below market expectations.

"The board believes that, based on the strength of the company's IP and track record of innovation, Marimedia is well placed to build on the strong position that it has already established in mobile advertising," it said in a statement.

N+1 Singer analysts said: "Once the details of the restructuring (including cost savings) are announced we will be able to adjust our forecasts, which we put under review at this stage."

Following the news, shares in Marimedia fell 35.32% to 76p on Thursday at 09:46.

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