Burst Media, the US based online advertising sales and technology business with shares listed on AIM in London and accumulated losses of $13.2 million, announced today that it expects to add another $1 million or more to that figure by the end of 2010.
“The Board is disappointed at having to reduce further its full year guidance”, said chairman David Hanger, a surprising statement when such disappointments have become commonplace. Even more surprising is the fact that the announcement implies the group actually made a profit in the second half of the year, but for some reason Hanger didn’t choose to point this out.
Burst incurred a loss of about $3 million before interest and tax in the first half of 2010 (see Bursting with more losses) and so, if the full year loss on the same basis is expected to be $1 million, the second half will have yielded a profit of $2 million. Perhaps there will be some ugly non-recurring costs that will wipe out the implied profit. That would not be out of character