No idea why today'sannouncement may be construed as being good news for shareholders.
Sydney - Monday - June 16: (RWE Aust Business News) - destra Corp (ASX:DES) said today its financial performance for the six months ending 30th June 2008 will be adversely affected by significant non-recurring items and a deterioration in operating performance in the current economic environment across key business lines. As a result, the estimate of earnings before interest, tax, depreciation and amortisation (EBITDA) for the second half is a loss of between $2.5 million and $3.5m before impairment charges. The full year EBITDA estimate is a profit of between $2.5m and $3.5m before impairment charges. Adverse non-recurring items are estimated to amount to $2.5m for the second half and include the loss on sale of investment in Beyond International and restructuring and severance costs as a result of the rationalisation of operations and management structure. Significant factors contributing to the weaker than expected trading performance of the Entertainment division include a deteriorating economic environment, lower than expected volume of theatrical releases and a disappointing theatrical result from the feature film August Rush and seasonally low retail sales volumes leading to abnormally high sales returns from retail distribution outlets. The company will also recognise non-recurring expenses relating to the integration of the warehousing and distribution facilities in its DVD operating divisions the benefits of which will flow into future periods.
DES Price at posting:
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