Nine Entertainment Co Holdings
(ASX:NEC) has announced it will be positively impacted by the Australian Government’s regulation change announced today on licence fees.
As a result of the change, the media company expects its FY17 EBITDA range will increase to between $200 million to $210 million, up from the previous guidance of $158 million to $187 million.
It comes as the Australian Government dropped the licence fee paid by Australia’s commercial Free to Air television broadcasters from 3.375 per cent to 0 per cent for the FY17 period.
Nine says it is continuing to advocate for the entire media reform package, which will see the Broadcast Licence fee abolished and replaced by a spectrum charge of $11.3 million (for a five year period).
Nine says the changes announced today will result in a $33 million reduction in licence fees, accrued in FY17 and paid by the company in FY18.
Shares in Nine Entertainment Co Holdings
(ASX:NEC) are trading 6.37 per cent higher to $1.42.
