EM Sport Media Issues Profits Warning as it Changes its Name

German EM Sport Media issued a profit warning as it reported write-downs of up to £135 million ($172 million) due to market conditions. The business plans to raise capital with an increase in share capital of up to 10 percent, and to change its name to Constantin Medien.

"The general economic situation and framework conditions for our group's business have noticeably deteriorated over the past months to such an extent that impairment charges in our balance sheet are inevitable," says Bernhard Burgener, chief executive. "We would like to face future challenges with an adjusted consolidated balance sheet. Together with the planned capital increase and assumption of unsubscribed shares, we send out a clear signal that we are convinced of the new media group's perspectives despite adverse profit impact. With Constantin Medien AG the group will carry a name, which has been internationally successful for decades and is highly respected."