Beyond issues profit warning

Australia-based producer and distributor Beyond has warned investors its net profit after tax is likely to be as much as 35% down year on year.

Management projections suggest full year 2016 earnings will be in line those for the 12 months to June 30, 2015, but that foreign exchange losses and changes to group income tax meant there would be a dip.

Net profit after tax will likely be down 25% to 35%, the company warned in a statement to the Australian Securities Exchange, with an exchange loss of A$131,000 (US$75,200) expected to be booked, and income tax expenses expected to be “significantly higher” than in financial year 2015.

Meanwhile, “disappointing trading results” in the final two months of the financial year at Beyond’s home entertainment arm, BHE, mean that division will see earnings before interest and tax down 20% year-on-year.

Beyond said it remained debt free and with a strong balance sheet. In its latest half-yearly results, Beyond posted revenues of A$55.8 million, a 15% increase on the same period a year earlier, and pre-tax profit of A$6 milion, a 22% uptick on the previous year.

The company was dealt a blow in October last year when Discovery Channel cancelled Mythbusters. The Beyond-produced show was the US cable channel’s longest-running series and a significant revenue driver internationally.

Beyond did not respond to a request for comment.