CNET issues revenue warning

by Louise Banbury, Brand Republic 09-Mar-01

Online technology news provider CNET has issued another warning that its first-quarter revenue would fall short of Wall Street targets because of the slowdown in online advertising.

LONDON (Brand Republic) - Online technology news provider CNET has issued another warning that its first-quarter revenue would fall short of Wall Street targets because of the slowdown in online advertising.

The company said it expects revenues to come in at $75m-$80m (£50.96m-£54.36m), compared with its previous estimate of $86m-$92m (£58.43m-£62.51m). It expects a first-quarter loss of $5m-$12m (£3.4m-£8.15m) in earnings before interest, tax, depreciation and amortisation, compared with its previous estimate of up to $5m (£3.4m).

Last month, CNET announced that its revenue and earnings would be down this year, and said it was cutting 10% of its 1,900 staff.

The warning comes as no surprise. Stocks in internet media companies have taken a battering recently as adspend dries up, and analysts have said that similar warnings from other online media and advertising companies could follow.

CNET’s share price closed at $9.43 (£6.41) yesterday, down $1.12 (76p) on the previous close.

www.cnet.com