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Australia's Seven Network profit dives on writeoffs

Tue Aug 25, 2009 7:13pm EDT

Stocks

   

MELBOURNE, Aug 26 (Reuters) - Australian broadcaster Seven Network Ltd (SEV.AX) said on Wednesday annual profit slumped 91 percent after it wrote down the value of some media investments.

The group, controlled by media mogul Kerry Stokes, said net profit in the year to June 30 after one-off items fell to A$12.5 million ($10.4 million) from A$142 million a year earlier.

The company wrote down its investment in Seven Media Group to zero and took an impairment charge on its stake in West Australian Newspapers (WAN.AX) of A$312.8 million.

In July, Seven lifted its stake in Consolidated Media Holdings (CMJ.AX), owned by James Packer, to 19.9 percent, the maximum allowable before launching a takeover.

Analysts say Seven is in a strong financial position for a potential acquisition, with net cash of almost A$1.4 billion. (Reporting by Victoria Thieberger; editing by Mark Bendeich)



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