Here’s how you do a profit warning
A tip of the hat to Ryanair for issuing a profit warning today that didn’t pretend to be anything else.
Often, big companies try to bury the obviously bad news in ways that are pointlessly self-defeating and just raise suspicions about what else they are hiding.
The airline’s RNS here is straightforward. It starts with the news. Then offers explanations. There are bullet points. And a decent quote from Michael O’Leary.
Ryanair shares took a big hit on the profit warning. But they would have done no matter how mealy-mouthed the language in the statement had been.
The early coverage of the Ryanair story looked straightforward, sympathetic even.
Surely it’s better to answer the simple questions any reporter or investor might have, rather than pretending that it’s possible to get away with what is plainly a bad turn of events.
It’s not that complicated this stuff. But I bet you there’s a profit warning in the next few days that uses weasel words to try and hide the truth.
There is no point.
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