Finance Finance News Nine profit ahead of forecast

Nine profit ahead of forecast

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Nine Entertainment has reported a statutory full-year profit of $58 million in its first results since re-listing, down 95 per cent on the previous year.

The figure was affected by one-off items and changes at the company.

Nine said its pro-forma adjusted profit, which accounts for acquisitions, divestments and costs of its December, 2013, listing, was $144.2 million, up 5.5 per cent on the previous year and 3.4 per cent ahead of prospectus forecast.

It will pay a 4.2 cent unfranked dividend, up from the forecast dividend of 4.1 cents.

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Revenue for the media group was $1.58 billion on a pro-forma basis, slightly up on prospectus forecast and 5.7 per cent on the previous year.

In a statement, Nine said statutory net profit after tax decreased from $1.2 billion in 2012/13 to $58 million for the year to June 30, 2014.

“Statutory reported results in the current and prior year were impacted by a number of one-off significant items, acquisitions, divestments and a recapitalisation of the company’s balance sheet,” the company said.

Nine flagged a soft start to the 2014/15 financial year and warned metropolitan TV advertising revenue was likely to be down five to 10 per cent in the September quarter compared to one year earlier.

“In light of the soft free to air market over the first quarter of the new financial year, first half results are likely to be subdued,” the company said.

Nine said cost cuts and debt restructuring would offset some of the lower revenue.

Chief executive David Gyngell was pleased with the performance.

“We have exceeded our prospectus forecasts across the board, and we are making good operational progress across each of our television, live and digital businesses,” he said.

“While the more recent advertising environment has been challenging, we are focused on improving the things we can control and enhancing our relative positioning through market leadership, consistency, and innovation.”

Nine’s share of the metropolitan free-to-air advertising market grew from 37.9 per cent to 38.7 per cent in the year, beating the 38.4 per cent prospectus forecast.

Revenue for the Nine Network television business was just 0.3 per cent below the prospectus forecast at $1.23 billion.

The Nine Live business, previously called Nine Events, posted revenue of $228 million, 7.7 per cent ahead of the prospectus forecast due to the success of touring and events including tours by One Direction, Ricky Martin and Keith Urban.

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