It seems to be a sign of the times. Great results, but market still not impressed!! Maybe companies should start making 75% losses, and the share prices might double.
Just shows that many investors do not use fundamentals to make their investment choices. A very dangerous practice indeed, and which will inevitably lead to bankruptcy!!
Ad boom helps lift PBL profit 75 per cent Aug 26 10:00 AAP
Kerry Packer's Publishing and Broadcasting posted a 75.4 per cent increase in annual net profit to a record $668.2 million on Thursday, as a buoyant advertising market lifts returns from its top-rating Nine Network.
PBL said its core television, magazines and gaming businesses were performing well, while contributions from other units, including online businesses ninemsn and SEEK, continued to grow.
"The robust business economy has contributed to a strong advertising revenue environment," chief executive John Alexander said. "Each of our businesses are well positioned to maximise the cycle."
The net result included a non-recurring item of $182 million, representing a distribution from television and movie production company New Regency. On a normalised basis, profit rose 31 per cent to $438.8 million.
The company is to pay an increased fully franked final dividend of 28¢, up from 14¢ in the previous corresponding period.
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advertisement It has been a busy year for PBL. It bought 25 per cent of SEEK in August 2003, launched a takeover bid for Perth's Burswood Casino in April and announced a joint venture with global online betting exchange Betfair in July.
Total normalised revenue grew by 6.3 per cent over the year, while group margins rose to 27.9 per cent from 25.0 per cent.
The television division reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $280.1 million, up 28.7 per cent.
Earnings from ACP Magazines rose by 20 per cent to $210.7 million, again supported by strong economic conditions.
Crown Casino in Melbourne reported EBITDA of $375.6 million, up 13.5 per cent. However, an above-theoretical win rate had a $64.5 million positive impact. On a normalised basis, earnings were up 3.2 per cent to $311.1 million.
PBL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
