SHARES in digital sports media group Perform took a dive yesterday after it said that a change in its revenue stream would slow down profit growth this year.
The group, which buys rights to major sports events and supplies content to online media, said that additional investments and a larger than expected proportion of sales from advertising and sponsorship, relative to content distribution and subscription platform services, would slightly impact its earnings growth rate for 2013.
Investors took a dim view of the news despite the group’s insistence it was confident of achieving strong future growth through both investments and acquisitions.
The negative outlook overshadowed a positive sales performance for the first half as revenue for the first six months to
30 April increased 37 per cent to around £92m.
Contracts for the same period reached £166m, compared to last year’s £131m, with the number of live events under contract adding to more than 17,000.
Co-chief executive Oliver Slipper said the group was planning to grow by securing long-term rights deals, expanding internationally and upgrading its Goal soccer website in time for next year’s World Cup finals,
Perform’s shares dropped 7.2 per cent yesterday to 540p.