Nine confident after $31.7m profit

NINE Entertainment is confident of continued positive momentum in the second half after posting a rise in first-half revenue.

NINE Entertainment Company says it is confident of continued positive momentum in the second half of fiscal 2014, after posting a rise in first-half revenue in its first interim result as a listed company.

In its first result since re-listing on the Australian Securities Exchange, net profit attributable to members came in at $31.68 million for the six months to December 31.

Pro forma net profit after tax, adjusted for listing costs, grew to $95m in the half, up from $77m in the previous corresponding period and beating pro forma prospectus guidance of $89.2m net profit after tax for the half.

Revenue lifted to $802.73m, representing a 22 per cent rise on the previous corresponding period.

“Each of our businesses has performed well and we are making good progress integrating our newly acquired Adelaide, Perth and Mi9 operations,” Nine chief executive David Gyngell said.

“We are confident our positive momentum in the first half will carry through to the full year.”

The company, which operates the Nine television network, Nine Digital and the Nine Events ticketing and venues business, listed on the ASX in December 2013, after a public offering by its private capital owners.

Nine is on track to beat the full-year profit of $139.5 million forecast in the prospectus.

Nine Entertainment chief executive officer David Gyngell said he was pleased with the debut performance.

“Each of our businesses has performed well and we are making good progress integrating our newly acquired Adelaide, Perth and Mi9 operations,’’ Mr Gyngell said.

“Following a moderately stronger first-half result than had been assumed in the prospectus full-year forecast, the Company remains confident of delivering the prospectus forecast.”

Pro-forma revenue, which gives a like-for-like comparison and takes one-off costs into account, was up nine per cent to $846m, while pro-forma earnings were up 17 per cent to $189m.

On its television operations, Nine said spending in the metropolitan free-to-air advertising market had started growing again after four consecutive half-year periods of contraction, growing five per cent in the six months to December, 2013.

On a reported basis, Nine Television increased revenue by 10.5 per cent to $60.5m, with half that figure coming from the acquisitions of TV station operations in South Australia and Western Australia.

The company said the balance of the revenue increase was the result of improved revenue share and market growth.

Revenues at digital division Mi9 were up slightly to $79.4m for the half but underlying earnings before interest, taxation, depreciation and amortisation plummeted 35.4 per cent to $13.7m and $7.8m on a pro forma basis.

The company said the first-half results reflected the flow-through of Microsoft product and strategy changes.

Nne said it remained was comfortable with the pro forma forecast Mi9 EBITDA of $15.6m.

Shares were steady at at $2.29 after morning trading.

— With AAP