Nine Entertainment hits profit target and announces a $150 million share buyback

Photo: Getty/Cameron Spencer

Nine Entertainment’s revenue and profit fell but the free-to-air TV network announced a $150 million share buyback.

Net profit was down 6.7% to $88.8 million for the six months to December. Revenue was down 1.9% to $829.2 million.

The result is in line with the company’s profit guidance of between $85 million to $90 million. However, analysts had expected higher revenue of $853.8 million,

The company said strong underlying cash flows will enable it to buy back up to $150 million worth of shares over a 12-month period.

Nine says the advertising market has been improving and the company is on track to lift full year profit by 10%.

The company announced a 4.2 cent per share unfranked interim dividend.

Nine’s shares jumped more than 9% in early trade to $2.03.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.