Sale has broadcast group on cloud Nine

BROADCASTER Nine Entertainment has made a $30 million profit on the sale of its stake in radio and regional television company Southern Cross Media.

Nine has sold its 9.99 per cent stake in Southern Cross, the owner of the Triple M and Hit Network radio businesses, at $1.54 per share, a significant increase on the $1.15 it paid per share just six months ago.

Nine’s head of investor relations Nola Hodgson said the stake was acquired to help shore up a regional television affiliate deal with Southern Cross Media.

“Part of the motivation was to ensure we could give ourselves every opportunity to get the best affiliate deal and that helped with that process,” Ms Hodgson said.

Nine struck a new regional partnership with Southern Cross in April, ending its long association with billionaire Bruce Gordon’s WIN, which subsequently struck a new deal with Network Ten. Nine’s fiveyear deal with Southern Cross began in July, meaning Nine’s programs are now shown on Southern Cross channels in regional Queensland, Southern NSW and regional Victoria.

“Our relationship with Southern Cross has never been better,” Nine chief executive Hugh Marks said in a statement yesterday. “The early performance of our new affiliate agreement has surpassed our expectations, and we look forward to a long and prosperous relationship between our two companies.”

Nine said the proceeds of its Southern Cross share sale would increase its flexibility in executing its strategy to develop its free-to-air, digital and video-on-demand services.