Nine ropes in more ads for profit boost

Entertainment shares have rallied to their highest level in more than two years as the broadcaster reaps the benefit of higher ratings.

The parent of the Nine Network yesterday posted a net profit of $174 million for the six months to December.

That marked a sharp turnaround from the $237 million loss it suffered a year earlier, when the group — which also has investments in various online businesses — wrote down the value of its free-to-air operation.

Nine said that during the six months to December, overall free-to-air advertising spending rose for the first time in more than two years.

Its share of that revenue increased to 40 per cent, the group said.

Nine said it expected its strong ratings performance to continue in the second half of the financial year — the six months to June — and its revenue share to be higher than in the same period a year ago.

But it warned growth will be limited by the impact of the Winter Olympics and Commonwealth Games on rival Seven Network.

Despite the warning, shares in Nine surged 16 per cent to $1.97 after the results were published, to their highest level since 2015. The company’s underlying profit was $116.2 million for the half — up from $75 million a year earlier.

Its net profit included earnings on the sale of its Sydney headquarters.