Australia’s Publishing and Broadcasting Ltd on Wednesday made its half year results 2006 presentation. Whilst the company described a tough television environment for Nine Network, where competition for market share saw revenue drop 4.6%, it reported solid earnings growth in investments, magazines and gaming.

The continued focus for PBL will be costs. An increased net cost of A$4 million (US$2.9 million) was ascribed to legal costs and investigation and implementation of investment opportunities. At the company’s two casinos, Crown in Melbourne and Burswood in Perth, there was higher cost growth from increased patronage levels on labour costs. PBL expects that cost growth in the second half of fiscal 2006 will be significantly lower.

On the gaming front revenue increased 32%, partly reflecting the first full half year figures for Burswood since it was acquired by PBL in 2004. Other contributing factors were increased local gaming business, hotels and food & Beverage. Turnover for VIP Program Play was higher at A11.8 billion (US$8.7 billion); with the acquisition of Burswood, PBL controls around 80% of business from high rollers, many Asian, in Australia. Reported EBITDA increased 60% to A$296 million (US$218 million) with a theoretical EBITDA increase of 16% to A$265 million (US$195.6 million).

PBL declared an increased interim dividend to 30 cents per share and 12% normalised earnings growth to A$349 million (US$257.6 million). It is anticipated that the company will continue to seek further growth in its casino business. It is in a joint venture with Melco International to pursue expansion possibilities in Asia. The half year results to 31 December 2005 were slightly above expectations. (E-02.22.06)

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