Seven sets off for 2011
Seven Group Holdings (SVW)) appears all set for growth for the financial year ahead because of its annual net profit of $718 million.
The newly formed company is a $3 billion merger between Seven Network and WesTrac, the Caterpillar dealership business held by Australian Capital Equity Pty. Kerry Stokes owns both companies.
The acquisition of Seven Network resulted in an accounting gain of $726 million, one-off transaction costs of $36 million, and capitalized borrowing costs of $6 million written off due to the formation of the new company.
Pro forma earnings figures for the merged company for the financial year shows a total revenue of $2.41 billion, up 1.1 percent.
A 10.5 percent rise can be seen in the new company's $141 million profit before tax. The company's liquidity stands at $455 million and it has a listed securities portfolio of $393 million.
Seven also owns 50 percent of online venture Yahoo!7 and 47 percent of Seven Media Group, the joint venture with private equity firm Kohlberg Kravis and Roberts.
Other media assets include 23 percent of West Australian Newspapers Holdings Limited and around 22 percent of pay-television investment vehicle Consolidated Media Holdings Limited.
The new company declared a final dividend of 18 cents, fully franked.