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June 29 (Reuters) - French media and entertainment group Technicolor cut its full-year core earnings forecast on Thursday as rising memory chip costs hit its Connected Home business, the company’s third profit warning this year.
Technicolor said it now expected annual adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in a range of 420-480 million euros ($480-548 million), down from the 460-520 million euros expected previously.
It forecast continued upward pressure on DRAM and Flash memory prices in the near future, which it had previously assumed would ease from the second half of 2017.
Technicolor confirmed its 2017 targets as recently as February when it lowered its 2020 targets after posting a net loss for the last fiscal year on the back of increased financial charges and interest expenses.
The February downgrade came on the back of a guidance cut in early January as lower than anticipated Connected Home sales caused a shortfall in 2016 core earnings.
The company maintained on Thursday its original full-year free cash flow objective of more than 150 million euros, before the cash impact of Cathode Ray Tube cartel case settlements.
$1 = 0.8754 euros Reporting by Wout Vergauwen; Editing by Elaine Hardcastle and Mark Potter