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SYDNEY, June 5 (Reuters) - Nine Entertainment Co Holdings Co Ltd, Australia's No.2 television broadcaster, said on Friday that annual pretax profit will be lower than previously forecast because of worsening conditions in the advertising market.
The Sydney-based firm said it now expects earnings before interest, tax, depreciation and amortisation to come in between A$285 million and A$290 million ($220-223 million), down from A$311 million the previous year.
The company had previously said it expected earnings for the year to June to be "at least in line with" the previous year.
"This reduction in earnings outlook reflects a softer than anticipated free-to-air advertising market in the second half which is now expected to be in low single-digit decline, driven by particularly soft conditions in May and June," Nine said in a statement.
The company's previous guidance was based on expectations that the advertising market would grow about 2 percent for the year to end-June.
With the earnings downgrade, Nine joins free-to-air rivals Seven West Media Network Ltd, No.1 in the sector, and third-placed Ten Network Holdings Ltd, which have both taken impairment charges this year as a result of a weaker advertising market.
All three companies have been losing viewers, and advertising revenue, as more people turn to entertainment alternatives such as the local arm of Internet streaming provider Netflix Inc. Nine and Seven both have interests in streaming services.
The announcement came after the market closed on Friday. Nine shares closed down 0.3 percent at A$1.99 in a weaker overall market, below their issue price of A$2.05 when the company listed in December 2013. ($1 = 1.3002 Australian dollars) (Reporting by Byron Kaye; Editing by Edwina Gibbs and Edmund Klamann)