Seven West Media (ASX: SWM) released a major profit downgrade late on Tuesday.
The Perth-based media giant announced its full-year earnings before interest and tax (EBIT) was likely to be about $50 million less than expectations.
Trading for the first time since the announcement, Seven West Media shares were down 16.18% to $3.16 in the first 30 minutes.
The company said the downgrade was due to weak advertising market conditions.
Get business news first
Sign up to SmartCompany’s daily newsletter
It expects its EBIT to be in the range of $460 to $470 million, down from a previously predicted $515 million.
“The group remains committed to costs below CPI except for the continuing investment in programing in the television division,” the company said.