GoPro shares fall 19% on quarterly loss

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GoPro’s sales were hit by a decision to cut the price of its Hero4 Session camera last year.

Shares in the wearable camera maker GoPro shed as much as 19% in after-hours trading in the US after the firm’s latest results showed it made a loss in the December quarter.

The firm said net income losses came to $34.5m (£23.67m) for the period, compared with a profit of $122.3m.

It also said revenue for the current quarter would come in well below expectations.

GoPro has been facing competition from cheaper devices made by Chinese rivals.

In its earnings statement, GoPro also announced that Brian McGee would take over as chief financial officer from Jack Lazar from next month and that it would cut production of some of its action cameras.

GoPro’s new action cameras will now only include the Hero4 Black, the Hero4 Silver and the Hero4 Session.

In December, the firm re-priced its Hero4 cameras, which dented the firm’s overall sales results. GoPro had said there had been weaker-than-expected demand for the device because of its initial high price.

As its earnings were released in the US, trading in the firm’s shares was halted. When trading resumed after hours, its shares fell as much as 19% before recovering later to be down 8.5%.

Upbeat regardless

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GoPro cameras fixed to the top of skiing helmets have been popular for several years

The firm was nevertheless upbeat about its revenue numbers.

“In 2015, we recorded 16% year-over-year revenue growth and the fourth quarter represented the second highest revenue quarter in the company’s history,” said chief executive and founder Nicholas Woodman.

“However, growth slowed in the second half of the year and we recognize the need to develop software solutions that make it easier for our customers to offload, access and edit their GoPro content,” he added.

Last month, shares of GoPro plunged as much as 28% in after-hours trading after the company said its revenue would come in below expectations.

In the year-to-date, the company’s shares have lost 40.5%.

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