Nine Entertainment posts 42% increase in 1H profit, hikes dividend
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The news: Media group Nine Entertainment recorded a 42% rise in first-half statutory profit to $81 million, as chief executive Matt Stanton attributed earnings growth during the period to improved performances by Stan, the metro mastheads and the AFR, despite a soft advertising market.
The numbers: Analysts had expected a first-half profit of $77.9 million, according to Visible Alpha data.
Revenue slipped 5% year on year to $1.06 billion, short of the market estimate of $1.15 billion. Group EBITDA added 6% to $192.2 million, in line with guidance.
The group declared an interim dividend of 4.5 cents per share, up from 3.5 cents per share last year and above forecasts of 3 cents per share.
The context: Stanton said the sale of its stake in Domain to CoStar, the acquisition of QMS, and the sale of Nine Radio will create a “higher-growth, digitally powered and resilient Nine Group for our consumers, advertisers, people and shareholders”.
“This positions Nine well for the future, enabling the group to withstand industry disruption and deliver long-term sustainable value to our shareholders,” he said.
The source: ASX
