Nine posts headline profit slump but says underlying performance exceeds goals

By Simon Frazer

Despite the profit decline, Nine says its television business gained ratings and revenue share across the year, and has announced a maiden dividend of 4. 2 cents per share.

Channel Nine’s parent company has reported a massive drop in its full-year profit in its first result after being re-listed on the ASX in a float last year.

Nine Entertainment acknowledged its experience as a television broadcaster does not guarantee the success of its first foray into the increasingly competitive online program subscription space.

The company says the result was driven by a number of one-off expenses, with underlying earnings of $144. 2 million, up 5. 5 per cent on last financial year.

Chief executive David Gyngell says Fairfax’s experience with subscribers will complement Nine’s years of picking popular programs.

Nine Entertainment reported a net profit after tax of $58 million, down more than 95 per cent on the prior year.

Nine announced yesterday it has formed a joint venture with Fairfax to develop a video streaming service, along the lines of the US firm Netflix, which will compete against Foxtel and others locally.

Read more here: ABC


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