Shares in digital marketing company Digital Globe Services (DGS) plummeted 68 per cent after first-half underlying cash profits tumbled more than three-quarters to $0.5m (£0.4m). It continues to suffer disruption from the protracted merger of key customers Time Warner Cable and Comcast; DGS's sales to the cable TV giants slumped nearly a quarter to $7.2m.
Earnings were also hit due to sales and technology investments and an increase in call-centre headcount in anticipation of higher call volumes that didn't materialise. The group partially offset that by launching a new business services platform and inking a deal with a leading US wireless carrier. Indeed, revenues from outside of its top five clients surged to $6.4m.
Broker N+1 Singer slashed its full-year EPS forecast to 5.2¢, rebounding to 9.6¢ in 2016 (17.3¢ in 2014).
