Profit warnings at media companies on the wane

by Staff, mediaweek.co.uk 03-Nov-09, 11:40

There were just three profit warnings from FTSE-listed media companies in Q3, fewer than during any quarter since Q4 2003. The Ernst & Young research suggests that the worst of the recession could be over.

So far this year there have been 22 profit warnings. With an average of 9.3 warnings in the final quarter of the past three years, 2009 is on track to deliver fewer profit warnings (31.3) than in previous years. There have been 34, 35 and 33 warnings over 2008, 2007 and 2006, respectively.

The course of the recession is clearly illustrated in the Ernst & Young data. There were 41 profit warnings over the last two quarters of 2008 and the first two quarters of 2009.

By comparison, there were 31 warnings over the last two quarters of 2007 and the first two quarters of 2009.