CDialogues tumbles on profit warning

Shares in CDialogues tumbled after it cautioned that full year revenue will be below current market expectations as a weaker performance of certain projects in September dented third quarter revenue.

In a trading update for the year to the end of December, the mobile marketing solutions group said third quarter revenues were lower than the first two quarters despite expected seasonality, while monthly revenues in October and November to date have been broadly unchanged relative to September.

In addition, delays in the new business pipeline have led to certain project launches originally anticipated to take place in the fourth quarter of 2015 now being expected to take place next year.

Certain pipeline-related expenses have already been incurred, which will have a negative effect on fourth quarter earnings before interest, taxes, depreciation and amortisation.

As a result, CDialogues now expects revenue for the year to be below market views, with EBITDA materially below current market expectations.

The company added that it is now review its internal forecasts for 2016 and said these are likely to be lower than current market expectations.

At 1200 GMT, shares were down 51.3% to 84.00p.