Proactive Investors - Videndum (LON:VIDV) shares slumped 36% after it was hit by news of more industrial action in Hollywood just as it announced the writers' strike had wrecked its first-half numbers.
Interim revenues fell 24%, while it made a loss of £50 million, swinging from a £16.4 million profit a year earlier.
If that wasn’t bad enough, today members of SAG-AFTRA, the trade union representing over 100,000 actors and performers, voted in favour of a strike authorisation on the Interactive Media Agreement that covers members’ work on video games.
SAG-AFTRA is hoping the authorisation (which does not mean the union is actually on strike) will add leverage ahead of a three-day bargaining session commencing today.
Analysts at Jefferies note: "The group's [Videndum's] end markets remain very difficult."
"The length and impact of the strike have been much worse than expected, given the combination of writers and actors being on strike and the uncertain shape/pace of recovery."
"Moreover, Consumer and ICC markets are more difficult than expected and there is no recovery underway, and speciality retailers are increasingly cautious/destocking further."
It also pointed out that management notes there could be a wide range of potential full-year outcomes and no guidance was given.
Videndum added it is exiting non-core markets, specifically, medical and gaming, to concentrate R&D investment on the high-end content creation market.
Whether that remains secure from the march of AI remains to be seen and investors were taking a gloomy view of the outlook.
Shares tumbled 36% to 355p.