Internet advertising services newcomer Burst Media Corporation has dismayed AIM investors with a stark warning about this year's financial performance.

Shares in the US-based company crashed 64 per cent this morning to 28.5p, wiping nearly £46 million off its AIM value, following a warning from the company's chief executive, Jarvis Coffin III, that this year's outcome was 'likely to be significantly below' current market expectations. Burst, which floated on AIM in April after raising £38 million at 82p with Altium as nominated adviser and broker, delivered an upbeat trading statement as recently as 20 July, which makes today's warning all the more disconcerting.

At that time, Burst said that investments made in the first six months would lead to early increases in revenues. Lifting the lid, Coffin now says these increases will take longer to materialise than originally expected and estimates 2006 revenues of around £12.7 million with earnings before interest, tax, depreciation, amortisation and share option costs of £1.27 million.