Nine Entertainment has reported a statutory full-year profit of $58 million in its first results since re-listing, down 95 per cent on the previous year.
The figure was affected by one-off items and changes at the company.
Nine said its pro-forma adjusted profit, which accounts for acquisitions, divestments and costs of its December, 2013, listing, was $144.2 million, up 5.5 per cent on the previous year and 3.4 per cent ahead of prospectus forecast.
Revenue for the media group was $1.58 billion on a pro-forma basis, slightly up on prospectus forecast and 5.7 per cent on the previous year; it warned, however, that advertising revenue would slide.
In a statement, Nine said statutory net profit after tax decreased from $1.2 billion in 2012/13 to $58 million for the year to June 30, 2014.
“Statutory reported results in the current and prior year were impacted by a number of one-off significant items, acquisitions, divestments and a recapitalisation of the company’s balance sheet,” the company said.
Nine flagged a soft start to the 2014/15 financial year and warned metropolitan TV advertising revenue was likely to be down five to 10 per cent in the September quarter compared to one year earlier.
“In light of the soft free to air market over the first quarter of the new financial year, first half results are likely to be subdued,” the company said.
Nine said cost cuts and debt restructuring would offset some of the lower revenue.
In other financial results announced today, Ramsay Health Care said it will target profit growth of 14 to 16 per cent in fiscal year 2015 after increasing full year profit by 14 per cent to $303.8 million.
Australia’s largest private hospitals operator has lifted its dividend by 23 per cent to 51 cents a share, fully franked.
Ramsay Health Care operates the Fullarton Private Hospital, the Kahlyn Day Centre in Magill and the Adelaide Clinic on Park Terrace, Gilberton.
The company said prudent acquisitions and expanding existing developments would be a priority to drive growth this year.
Ramsay’s founder and chairman Paul Ramsay passed away in May.
During the year, Ramsay’s Australian and Asian business achieved revenue growth of 10.5 per cent and earnings before interest and tax growth of 14.8 per cent.
Revenue and EBIT in its European operations in the UK and France also increased.
“We are successfully delivering on our stated growth strategy – focusing on hospitals; reinvesting in our facilities; pursuing public/private opportunities; and making prudent acquisitions,” chief executive Chris Rex said.
The company runs 69 private hospitals and more than 80 day surgery facilities.
The impending acquisition of France’s GdS and its hospitals will cement Ramsay’s position in the top five private hospital operators in the world, Rex said.
“With the finalisation of the GdS acquisition expected in late September 2014, we look forward to becoming the premier private operator in France and integrating GdS into our global operations,” Rex said.
