Seven Network Ltd has posted a fall in bottom line annual profit but says its underlying earnings are strong with core television revenue outpacing overall market growth.
Seven also confirmed it will buy back up to 40 million shares or about 19.4 per cent of its issued shares in the year from September 10.
Net profit for the year ended June 28 was $14.594 million, down 91.3 per cent on the previous corresponding year.
Net profit before significant items was $170.653 million, down 2.2 per cent.
For the fiscal 2008 year, Seven said corresponding comparisons on earnings were difficult to make due to changes in the company's structure, following the formation of the Seven Media Group joint venture with private equity group Kohlberg Kravis Roberts & Co (KKR).
But it said Seven Media Group's annual earnings before interest, tax, depreciation and amortisation (EBITDA) was $398 million, up five per cent from $380 million.
Seven Network's share of the joint venture profit in Seven Media Group was $54 million.
The joint venture between Seven Network and KKR formed in December 2006 includes television, magazines and online businesses previously wholly owned by Seven Network.
The magazine business Pacific Magazines, which holds titles like New Idea and Better Homes and Gardens, posted EBITDA of $61 million.
"Pacific Magazines has delivered a market leading performance across key publishing categories over the past 12 months, with the company approaching a 30 per cent share of overall readership in the magazine market, up from just under 24 per cent 12 months ago," it said.
Seven's online joint venture with Yahoo!, Yahoo!7, continued to perform well with consolidated revenue up 50 per cent, it said.
Seven said its buyback program announced on Tuesday is subject to shareholder approval at a meeting to be held next month.
The buyback forms part of its ongoing capital management program, and follows buybacks over the past 12 months of 21.15 million shares, or 10 per cent of its issued capital.
Seven Network's annual revenue was $114.90 million, reflecting the impact of the shift of some assets to the KKR joint venture.
Revenue including dividends, interest income and share of equity accounted profits was $272 million.
Seven declared a final dividend of 17 cents, taking the total for the year to 34 cents, up from 29 cents in the fiscal 2007 year.
