One of the worst performers on the market today has been the Mitula Group Ltd (ASX: MUA) share price.
In afternoon trade the digital classifieds group's shares are down almost 13% to 48 cents. At one stage Mitula's shares were down as much as 19% to a multi-year low of 43 cents.
What happened?
This morning the company released a trading update which revealed a further downgrade to its FY 2017 revenue and earnings guidance.
According to the release, management expects to report a 20% year-on-year increase in revenue to $33.5 million. Earnings before interest, tax, depreciation, and amortisation (EBITDA) is expected to be flat on FY 2016's result at $11.5 million.
This is a 1% and 3% reduction on its revenue and earnings growth, respectively, compared to its previous guidance. Management has explained that this is primarily a consequence of lower than expected AdSense rates in December 2017. Further details will be provided when it reports its full-year results during the last week of February.
Whilst this is disappointing, management remains confident that the outlook for FY 2018 is positive and it has a number of exciting growth initiatives developed that could help boost its future performance.
Shareholders, it seems, are not so optimistic on FY 2018 and have headed to the exits in their droves today.
