By Stuart Condie
SYDNEY–Nine Entertainment Ltd. swung to an annual profit as TV advertising revenues recovered from their Covid-driven lows.
The media conglomerate reported a net profit of 169.4 million Australian dollars (US$123.0 million), compared with an impairment-driven loss of A$589.2 million a year earlier. Revenue rose 7.8% to A$2.34 billion as advertisers returned after hoarding cash during the initial shock of the pandemic.
Nine’s continuing operations net profit, excluding significant items, rose by 76% to A$277.5 million.
Nine said metropolitan free-to-air TV ad revenues had recovered more quickly than it had anticipated. It said they were expected to further rise 20% in the first quarter of fiscal 2022, and that positive momentum was continuing into the subsequent three months.
Nine declared a final dividend of 5.5 Australian cents per share, up from 2.0 Australian cents last year, for a full-year payout of 10.5 Australian cents.
It reported underlying earnings before interest, tax, depreciation and amortization of A$565 million, up 43%. The average analyst forecast was for underlying Ebitda of A$567 million, according to data compiled by Factset.
The improving environment would mean the return of some cyclical costs, Nine said. It expects FY 2022 free-to-air TV costs to rise 3% on-year.
Write to Stuart Condie at stuart.condie@wsj.com
