Fuji Media Holdings Inc. shares slipped and the spread on its bonds has widened as the impact of a sexual harassment scandal continues to hurt the Japanese television broadcaster.

Fuji Media, rocked by a scandal that has gripped Japan, on Thursday slashed its annual net profit forecast by two-thirds citing a sharp drop in advertising revenue. Fuji Media this week announced a management shake-up amidst a probe into alleged sexual misconduct by a celebrity TV host against one of its staff.

Fuji Media Holdings Inc. has experienced a decline in its shares and a widening spread on its bonds as the company grapples with the ongoing fallout of a sexual harassment scandal.

A Japanese tabloid that broke the news about alleged sexual harassment by a prominent TV host involving Fuji Media Holdings Inc, triggering a public outcry and spooking advertisers, has corrected a part of its story.

The Japanese government said Thursday it has pulled advertisements from Fuji Television in the wake of sexual assault allegations lodged against its celebrity host, as the company slashed profit forecasts.