Nine shares rally after sharp fall as Seven looks to calm market by maintaining guidance

Gyngell

Seven West Media has sought to calm the market following Nine’s profit warning which led to a share nosedive yesterday.

Nine shares fell nearly 20 per cent to $1.63 early yesterday before rallying in the afternoon.

It followed Friday’s profit warning which said a soft advertising market was likely to see EBITDA – earnings before interest, tax, depreciation of amortisation – for the current financial year – likely to fall to be between $285m – $290m, down on the expected $311m.