Nine Entertainment says CEO David Gyngell followed the rules when he sold shares in the weeks before Friday’s profit warning.
Gyngell is reported to have pocketed about $1.5 million from the sale of shares.
The Nine spokesman told Fairfax Media Gyngell’s shares were sold following approval of the chairman, David Haslingden, and in compliance with the share trading policy.
Gyngell’s shares were worth about $19 million when the TV company floated in December 2013.
Nine shares fell more than 16% on Tuesday after the television network downgraded its full year profit estimates as the adevrftising marketed softened.
Earnings are now expected to be between $285 million to $290 million. This compares with previous guidance of $311 million, which assumed modest growth of 2%.
Nine has been contacted by the corporate watchdog ASIC (Australian Securities and Investments Commission) over the profit warning and sharp fall in the share price.
Today the shares have picked up a little, trading at $1.69, about 1.8% higher than yesterday’s close.