Metrodome issues profit warning

Entertainment company Metrodome has issued a profit warning after TV division Target, which distributes shows including Taggart and Fifi and the Flowertots, following a collapse in sales in the European marketplace. Metrodome, which acquired loss-making TV distribution company Target in an £800,000 deal in August, said it expects operating profits for the year to be "materially below current market expectations". The company said Target has "experienced tougher-than-expected trading conditions in the final quarter of the year". Target makes most of its annual revenue in the last six weeks of the year but sales have crashed, with European broadcasters wary of the worsening economic conditions refusing to strike deals. "Many of our customers are either not buying products at all or delaying decisions on any new purchases which has led to a worse-than-expected financial performance," said Mark Webster, executive chairman of Metrodome. As recently as the end of September the company reported to the market that Metrodome was performing "in line with the board's expectations". In 2010 made Metrodome made an overall loss of £680,000 on headline operating profit of £747,000. The company said on Thursday that subsidiaries Metrodome Distribution, which handles films including The Secret in their Eyes, and Hollywood Classics were "trading in line with expectations". Metrodome acquired Hollywood Classics – which represents the classic film libraries of major studios and films such as Breakfast At Tiffany's, The Godfather and Psycho – in August for £1.6m. Last year Hollywood Classics reported revenues of £6.7m and pre-tax profit of £510,000. • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly "for publication". • To get the latest media news to your desktop or mobile, follow MediaGuardian on Twitter and Facebook .