Nine has slipped to a $203.4 million full-year loss

Nine Entertainment has slipped to a $203.4 million full-year loss due to previously announced write-downs of assets including its free-to-air TV network.

Total revenue slipped three per cent to $1.24 billion but a group-wide five per cent reduction in costs helped Nine lift its underlying profit 2.7 per cent to $123.6 million.

Nine said its ratings performance improved significantly at the start of 2017, after a low in the September quarter, underpinned by its Married at First Sight series.

Nine Entertainment has slipped to a $203.4 million full-year loss due to an asset write-down

The Rio Olympics on rival Seven had hit both the size of the advertising market and Nine’s share of it in the first-half of the year.

Nine Network’s TV revenue dropped 4.4 per cent in the year, with the company blaming a soft ad market and the Olympics.

Nine said the total television ad revenue market shrank by 3.5 per cent in the year, with the metro market declining 3.7 per cent.

But the company on Thursday said excluding the Olympic weeks, it attracted a commercial network share of 37.1 per cent of the 25-54 demographic and a number one share in all of the key buying demographics for the year.

Chief executive Hugh Marks said the options to monetise the network’s content had never been more diverse.

“With a strengthening balance sheet, and significant operational momentum and leverage, Nine enters the new financial year in a much stronger position,” Mr Marks said.

 Chanel Nine previously announced writedowns of assets including its free-to-air TV network

 Chanel Nine previously announced writedowns of assets including its free-to-air TV network

The broadcaster recorded a total $327.1 million in impairments – up from $311.9 million in the first half – but left the non-cash impairment on goodwill of its TV network, announced in February, unchanged at $260 million.

The broadcaster expects TV revenues to grow around 15 per cent in the September quarter, against the Olympic-impacted previous corresponding period, while digital revenues are expected to rise around eight per cent.

It forecast group earnings to be towards the upper end of a $186 million and $207 million range, assuming licence and spectrum fee related legislation, which is currently before the Federal Senate, is passed in its current form.

Nine shares were up 4.7 per cent to $1.56 at 1046 AEST.

COST CUTS THAT WILL HELP NINE HOLD THE LINE IN 2016/2017 

* Full-year net loss of $203.4m vs. profit of $33.2m

* Revenue of $1.24b vs. $1.29b

* Fully franked final dividend of 5 cents, up from 4 cents previously 

 

 

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