Nasdaq Suspends comScore Shares

The Nasdaq stock market has suspended trading in shares of troubled audience measurement firm comScore, following the company's notice that it would miss another deadline for filing of reports.

Almost a year ago, comScore revealed it was investigating irregularities in its accounts: a report into this audit was published in September, restating revenue and operating loss figures for 2013-15, but comScore has not yet regained compliance and on Monday said it would not do so before the 23rd February deadline, previously described by the exchange as the 'maximum amount of discretion' it could give. Shares were delisted on Wednesday.

Among other implications, the suspension is likely to mean that 19.5% comScore shareholder WPP will incur an exceptional charge of around $197m when reporting its results for 2016, in three weeks' time, according to the news site Marketing Services Financial Intelligence (www.fintellect.com ). This corresponds to a fall in the share price from just over $32 to around $23, when the forthcoming default was announced. As of this week, WPP's comScore shareholding is worth around $174m (£140 million), compared with its initial value of about $589m, according to the site. The marcoms giant has already written down the investment to $371m at 30th June last year.

Also on Wednesday, comScore announced it had entered into a Tax Asset Protection Rights Agreement, designed to extend the period for which it can carry forward net operating losses of $290m - analysts have suggested this measure will also serve to deter takeover bids.

Web site: www.comscore.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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