Seven Group profit 'hit by one-off events'
Media and earthmoving equipment company Seven Group Holdings (SGH) has reported a fall in full year net profit, but the statutory result was impacted by a number of one-off events.
Seven Group Holdings was formed in April 2010 after billionaire Kerry Stokes brought together his mining and television interests under one roof in a $3 billion merger.
The company underwent further change in February 2011 after a $4.085 billion deal that resulted in West Australian Newspapers Holdings acquiring the free-to-air television, magazine publishing and online assets of Seven to form a new company Seven West Media.
Seven Group's shares surged 24 cents, or 3 per cent, to $8.30 in morning trade.
Seven Group said it now owned 29.6 per cent of Seven West Media, with an additional $250 million convertible preference shares.
Seven said net profit for the 12 months to June 30, 2011 fell 90.19 per cent to $70.41 million.
"Meaningful corresponding comparisons on earnings are difficult due to changes in the company's structure resulting from the one-off effects of both the SGH merger and the recent Seven West Media transaction," Seven said in a statement.
Revenue rose 488.3 per cent to $3.16 billion, Seven said in a statement on Thursday, which it said was 31 per cent higher than the 2009/10 pro forma result.
Seven said earnings before interest, tax, depreciation and amortisation (EBITDA) was $420.8 million in 2010/11, up from a pro-forma $246.2 million in the prior year.
The company said EBITDA represented profit before net finance costs and taxation, excluding depreciation, amortisation, impairment and gains on sale of investments.
Seven said the Caterpillar dealership business WesTrac exceeded all key measurements in the merger scheme documents, with EBITDA up 48 per cent to $278.6 million.
"The company's growth in Australia is being driven by expansion in coal and iron ore mining," Seven said.
"The strong performance sees a strengthening in WesTrac Australia's EBITDA and EBIT margins over the past twelve months."
Seven said the full-year results also reflected writedowns on its investments in Seven West Media and Consolidated Media Holdings, "to reflect the share prices of both companies at 30 June 2011".
"Significant items total a $168.4 million loss net of tax," Seven said.
The company declared a final dividend of 18 cents per share, fully franked.