Scotland-based media company SMG has said its 2006 profit would be materially behind previous expectations.
"As reported by a number of UK media companies, broadcast markets have weakened significantly during the second half of 2006, with ITV1 and cinema revenues being particularly affected in the fourth quarter," SMG said.
"As a result, the group is in discussions with its banks in relation to a potential breach of certain of its financial covenants and a satisfactory outcome is expected," SMG said.
The announcement sent shares in the Virgin radio owner down more than a quarter in value to a 15-year low.
Earlier this morning, SMG shares, which had underperformed the media sector by 36 per cent over the past 12 months, were down 28 per cent at 50 pence to value the business at £158 million.
SMG had been the subject of a takeover approach by Northern Irish peer Ulster Television over the summer months. But UTV withdrew its interest on September 20.