Revenues fell by 7.7% to $239m and profits fall by 17.1% to $55m in the first half of this year, the company told the ASX today.
“The structural challenges facing regional television have compelled the board to review and adjust downward the carry value of television licences and goodwill, resulting in a one-off, non-cash impairment of $122.9 million,” Prime chief executive Ian Audsley said.
“This adjustment reflects the impact of new and largely unregulated market entrants, increased competition for audiences from global and Australian media platforms, and the comprehensive reach of the internet and streaming services.
“Reducing licence fees paid by the broadcasting sector to a level where they are consistent with international standards is well overdue and the government needs to remove this onerous impost on our businesses as soon as possible.”
But the company indicated an improved performance during the current quarter with the Olympics.
“The Rio Olympic Games broadcast will deliver Prime a much improved revenue outcome compared to July and August 2015. Combined with the AFL Finals series in September, we expect first quarter advertising revenue to show strong improvement on the prior corresponding period,” he said.