Waislitz’s Thorney slumps to $46m loss

Billionaire Alex Waislitz’s Thorney Opportunities has slumped to a $46m annual loss.

Thorney Chairman Alex Waislitz. Picture: David Geraghty, The Australian.

Billionaire Alex Waislitz’s Thorney Opportunities has slumped to a $46m annual loss, as shareholdings held by the listed investment company were hit hard by COVID-19 and media assets were written down.

In an annual report lodged with the ASX on Tuesday evening, Thorney Opportunities revealed it had written down its shareholding in Antony Catalano’s Australian Community Media by 15 per cent.

Thorney and Mr Waislitz combined to pay $57.5m for a 50 per cent share in ACM when the business was sold for $125m by Nine Entertainment last year.

“With bushfires, floods and the COVID-19 pandemic creating an uncertain outlook on advertising revenues, the Thorney Opportunities (TOP) board has taken a prudent approach to valuing its holding in (ACM), Mr Waislitz said in his chairman’s letter to shareholders. “As with all TOP’s investee companies, we are working closely with ACM management to best position this private company for the future.”

Thorney’s net tangible assets declined by 25 per cent to about $122m, as five of the stocks that represent 60 per cent of its portfolio closed the year at weaker share price levels. Among the five are Money3 Corp, AMA Group and Service Stream.

Mr Waislitz’s private investment firm was paid $2.2m in management fees for the year, but received no performance fees. The $46m loss compared with a $12m net profit in 2019.

“While I am disappointed with the performance … I retain a high level of conviction in TOP’s portfolio composition and remain optimistic that the market will come to acknowledge TOP’s … value over time,” he wrote.

Thorney declared a final dividend of 1.27c per share fully franked, though Mr Waislitz will defer the receipt of his portion until early 2021.

Additional reporting: Eli Greenblat