Shares in Australia’s listed free-to-air TV networks jumped after the federal government cut licence fees.
At the close, Nine was up 4.49% to $1.395, Seven West Media 4.2% to $0.735 and Southern Cross 7.1% to $1.28.
Ten is in a trading halt after going into voluntary administration earlier this month.
The government reduced the fee for Australia’s commercial television broadcasters to zero from a bout $127 million for the 2017 financial year and replaced it with combined spectrum usage fees of about $43.5 million.
The networks, struggling in a shrinking advertising market, have been lobbying for cuts in fees and reform to media law such as abolishing the two-out-of-three rule which stops one company controlling a radio, TV network and newspaper.
Nine says the change will mean a reduction in licence fees of about $33 million.
The network increased its full year earnings guidance to between $200 million and $210 million, from the previous $158 million to $187 million.
Southern Cross says the move will save $11.8 million in the current financial year and the company expects its spectrum usage fee won’t be more than $4 million in 2018.
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