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Former treasurer Peter Costello to chair Nine board, as half yearly profit falls 5.1%

NineNine Entertainment’s half-yearly net profit after tax has fallen from $88.8m last year to $78.4m as the company today announced a shake-up of the Board with chairman David Haslingden being replaced by board member and former treasurer Peter Costello.

When the sale of Nine Live is accounted for, the decline in profit represents a 5.1% decline.

For a second year in a row, revenues were down, with the company this year reporting a 7.1% decline to $690.3m down from $726.7m while EBITDA was $127.9m down 7.1% from $135m last year, when adjusted post-sale. 

Within Nine’s divisions television revenues fell $34.8m (a fall of 5%) with its earnings falling $11.4m, or 9%. Digital revenues decreased $1.7m, or 2%, but earnings were up $1.4m or 13.

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Source: Nine’s half yearly report.

According to the half-yearly results the post-tax profit from the sale of Nine Live was $289.3m from the $640m sale with much of the funds used to pay down debt.

Nine also included a $33.3m write down of its regional TV business NBN and a $9.4m write down due mainly to the conclusion of its Daily Mail joint venture.

Nine CEO Hugh Marks said in a statement: “I am pleased to report a solid result in what has been a challenging advertising market. Competition from both within and outside the sector kept pressure on our revenues.

“However, our stringent cost focus has resulted in a group-wide cost decline of 5% for the period, mitigating much of the revenue impact.”

Nine has also announced another share buy-back and will have an 8 cent dividend for the period.

Nic Christensen

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