Merger hails asset sale
‘New Nine’ to shed regional newspapers Webjet shares on the move
NINE Entertainment has confirmed it is pushing ahead with the sale of its regional and community newspapers and its New Zealand operations following its recent $4 billion merger with Fairfax Media.
The enlarged company has also flagged that its streaming video-on-demand business Stan will start delivering earnings growth from the fourth quarter.
Statutory net profit fell 1.4 per cent to $171 million for the six months to December compared to the same period a year earlier, Nine reported yesterday.
Nine copped $43 million in costs related to December’s merger with Fairfax Media.
Revenue fell 1 per cent to $709.8 million.
Pro forma net profit rose 1 per cent to $140.2 million, helped by a $93 million increase in Stan’s carrying value.
Pro-forma results consolidates the financial results for the former Nine and Fairfax businesses for the full half-year period.
Pro forma revenue fell 3 per cent to $1.2 billion.
Nine said it was “exploring potential value-maximising opportunities for its nonmetropolitan media assets, namely Australian Community Media and Printing (ACM), Stuff New Zealand and events”.
“To this end, Nine has appointed an adviser to manage the divestment processes, and has received initial indications of potential interest from a number of parties in relation to Qantas chief executive Alan Joyce attributes a profit hit to a sharp A$416 million jump in the airline’s fuel bill each business for sale,” the media group said in its halfyear profit statement.
Nine has previously said it is selling its events business.
Chief executive Hugh Marks said the company’s overall result was a “testimony to the new Nine” and also justified the decision to move away from cricket broadcasting in favour of tennis. WEBJET shares have soared 29 per cent to a four-month high after the online travel company reported first-half profit rose by more than a third.
The Melbourne company’s revenue grew 33 per cent to $175.3 million and earnings were up 30 per cent to $51.8 million. It made a post-tax net profit of $25.2 million, including one-off charges and amortisation expenses, a 37 per cent rise over a year ago.
Excluding one-off costs and amortisation expenses, its results look even better – a net profit of $38.3 million, a 61 per cent rise. “This was another outstanding result for our business,” managing director John Guscic said yesterday.
Its shares were trading up 30.61 per cent, or $3.48, to $14.85 at the close.
The company may best be known to Australians for its Webjet.com.au online booking website but the earning results show Webjet is now making most of its money from its WebBeds hotel inventory division, which is the No.2 global business-to-business player, Mr Guscic said.
The company bought Dubai-based Destinations Of The World in November for $US165.7 million ($A229.2 million) and integrated it into the WebBeds platform in January.