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Seven: profit down, revenue up, share buyback

Channel Seven’s net profit for the year ended June 28 was $141.59 million, down 91.3 per cent on the previous corresponding year. But Seven says its underlying earnings are strong with core television revenue outpacing overall market growth.

Net profit before significant items was $170.653 million, down 2.2 per cent. Seven Media Group’s annual earnings before interest, tax, depreciation and amortisation (EBITDA) was $398 million, up 5 per cent from $380 million. Seven Network’s share of the joint venture profit in Seven Media Group was $54 million.

Seven also confirmed it will buy back up to 40 million shares or about 19.4 per cent of its issued shares in the year from September 10.

For the fiscal 2008 year, Seven said corresponding comparisons on earnings were difficult to make due to changes in the company’s structure, following the formation of the Seven Media Group joint venture with private equity group Kohlberg Kravis Roberts (KKR). The joint venture between Seven Network and KKR formed in December 2006 includes television, magazines and online businesses previously wholly owned by Seven Network.

Pacific Magazines posted EBITDA of $61 million. Yahoo7, continued to perform well with consolidated revenue up 50 per cent, it said.

Seven said its buyback program announced today is subject to shareholder approval at a meeting to be held next month.

An existing share buyback has already seen chairman Kerry Stokes’ private company, Australian Capital Equity (ACE), lift its stake in Seven to about 45 per cent by not participating in other buybacks. Analysts have been speculating that this could mean ACE is preparing a takeover bid for Seven Network.

Source: news.com.au, The Australian

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