Nine outlook buoyant despite slide in profit
Profit falls for NEC 6.4 per cent but ad revenue is up, as company announces share buy back.
- Published by David Knox
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Nine Entertainment Co. today announced a slide in profit and revenue amid a tough free-to-air television advertising market.
Profit fell 6.4 per cent to $88.8 million in the six months to December 31 while revenue dipped 1.9 per cent to $829 million.
But the company had boosted its share of overall metropolitan free-to-air TV advertising revenue to 39.2 per cent from 38.7 per cent.
CEO David Gyngell said “…in what has been a difficult advertising market Nine Entertainment has reported a solid result.
“We are confident about our schedule for 2015 and see a clear path to our 40 per cent revenue target,” he said.
Nine also announced a $150 million share buyback up to a maximum of 10 per cent of its issued capital.
“The decision to implement an on-market buyback is a function of our sustained conservative leverage and strong underlying cash flow, and provides us with the ability to opportunistically acquire shares whilst retaining significant balance sheet flexibility to exploit opportunities which might arise,” he said.
Source: Fairfax, West Australian