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