Regional broadcaster Prime Media is facing a first half profit slump as the decline in advertising revenues worsens.
Shareholders heard the bleak news during Prime's annual meeting on Tuesday, when investors also lodged a strong protest vote against the company's executive pay policy.
Advertising revenue for Prime, which is affiliated with the Seven Network, fell 6.9 per cent in July and August.
Chief executive Ian Audsley says that trend worsened in September due to the V8 Supercar Series moving to Ten and Fox Sports, and the AFL Grand Final being staged in early October rather than the usual date in late September.
By the end of the September quarter revenue had fallen 7.9 per cent.
Mr Audsley said going into November, the advertising market was disappointing.
Regional advertisers still lacked confidence, with southern NSW and Western Australia the most challenging markets.
"Both national and local advertiser spends are behind the historic trend," Mr Audsley told shareholders.
The weaker ad market leaves Prime facing a first half profit that will fall below the $18.4 million it made in the six months to December 2014.
"As a result of the weakness in the revenue market, coupled with programming cost increases, we anticipate a first half core NPAT (net profit after tax) result of between $13.5 million and $14.5 million," Mr Audsley said.
The build-up to the Rio Olympics should provide additional opportunity in the second half of 2015/16, he said.
However, the bulk of Olympics advertising spending would occur in the 2017 financial year.
Meanwhile, Prime suffered a "first strike" against its executive pay proposal with around 35 per cent of shareholder votes opposing the group's remuneration report during Tuesday's meeting.
A second strike could lead to a board spill next year.
Chairman John Hartigan said the board recognised incentive and salary arrangements had to meet shareholders and governance advisers' expectations.
Prime Media shares were two cents higher at 55.5 cents at 1507 AEDT.
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