Rapid TV News

Cons Media likes pay-TV

Rose Major ©RapidTVNews | 19-08-2008

Consolidated Media Holdings (CMH) the media investment vehicle spun out of Australia’s Publishing & Broadcasting Limited (PBL) had a healthy first full year of trading, with profits of A$105 million, mostly due to its pay-TV investments. 

Much of that profit came directly from distributions received from its pay-TV assets, including its 25% share in Foxtel and 50% pf the Premier Media Group, which operates Fox Sports. CMH received A$110 million from pay-TV investments during the year, of which A$65 million came from Foxtel, plus an additional A$25 million from Foxtel in July, which will be included in next year’s figures.

Premier Media Group reported revenues of A$384 million, including A$267 million in subscription revenues, with operating profit up 25% to A$133 million. CMH recorded a A$54.9 million equity-accounted profit from Premier, up 20%.

Another A$20.4 million in post-tax equity accounted profit came from the group’s 27% investment in jobs website Seek, up 39%.

John Alexander, CMH executive chairman, said: "The value in CMH, in our minds, is primarily in our pay television assets … arguably the fastest-growing media sector in Australia."

The value, if any, of CMH’s 25% stake in PBL Media, which owns Nine Network, was thrown into relief. While PBL Media’s pre-tax and interest profit was A$463 million, after interest on the unit’s A$4.2 billion debt (built up by private equity firm CVC when the group was buying its 75% stake), CMH’s share of profits stood at just A$7.5 million.