Shares in Marimedia (MARI) plummeted 40 per cent after the Israeli advertising-software group said it would cease investing in its main display business and focus entirely on the faster-growing mobile market. Management expect the shift will mean full-year revenues come in "materially below" market expectations.
Marimedia, whose 'Qadabra' software matches ad slots on publishers' websites with the highest-paying advertisers, recently snapped up mobile targeting specialist Taptica. It's also preparing to launch a platform that lets publishers sell mobile and video ad slots to marketers in real time.
Management plan to outline the likely cost savings and revenue impact of the restructuring on 04 June. Broker N+1 Singer previously expected EPS to rise by half to 20.4¢ (13.3p) in the current financial year, up from 13.6¢.
