Prime Media 2017 results: Increased profits, hopes for 2018 Comm Games revenue lift

Earnings were $64m, up 16% YOY, with a net profit of $36m.

Prime Media reported revenue was flat YOY with $240m for the 12 months. Earnings were $64m, up 16% YOY, with a net profit of $36m.

The company didn’t waste any time on the analysts call this morning which last for just nine minutes.

Prime CEO Ian Audsley said:

“This is a pleasing result, especially given the continuing challenges in the regional television advertising market. We were able to successfully monetise the 2016 Rio Olympic and Paralympic Games and of course, like all commercial broadcasters, we were beneficiaries of the Federal Government’s use of its regulatory powers to remove licence fees payable as a one-off relief measure. As a result of the licence fee relief in FY17, Core NPAT was $35.6 million, exceeding our expectations for this financial year.”

Regarding the outlook, Audsley said: “Regional television remains under revenue pressure at both national agency and local sales levels. We expected the full-year earnings outlook to be 25% to 30% down on the 2017 financial year, given we don’t have the benefits of the Rio Olympics and licence fee relief in the current year. However, our July 2017 trading results were 10% below expectations and the outlook for the remainder of the calendar year remains challenged.

“We have high expectations for the Commonwealth Games in April 2018 but it is too early forecast.”

To Top