Nine posts 27 per cent profit jump ahead of its Fairfax merger

Nine Entertainment Co chief executive Hugh Marks has posted a 27 per cent jump in full-year earnings as the free-to-air broadcaster prepares for its planned merger with Fairfax Media.

The television's broadcaster's net income before significant items rose to 156.7 million in the year to June 30, up from $123.6 million the year before, it said in a statement to the ASX on Thursday morning. Group earnings (before interest, tax, depreciation and amortisation) were up 25 per cent to $257.2 million as revenue rose 6 per cent to $1.32 billion.

In fiscal 2019, the company expects group earnings will be in the $280 million to $300 million range, with 1 per cent growth in the metro free-to-air television market.

Nine last month announced a deal with Fairfax Media (owner of this website) that will see the free-to-air TV company take control of Fairfax's mastheads, radio interests in Macquarie Media, the 50 per cent of Stan it doesn't yet own and Fairfax's 60 per cent stake in Domain. Fairfax shareholders will receive 0.3627 Nine shares and $0.025 cash for each Fairfax share, under the offer. This implies a 21 per cent premium to Fairfax's closing price before the deal was announced.

The deal is still subject to a shareholder vote and approval from the competition regulator, with the Australian Competition and Consumer Commission expected to make a decision around November 8 and a vote to be held in the same month.

Nine will pay shareholders a final fully-franked dividend of 5c payable on October 17.

More to come...