According to the AFR, $43 million from Nova’s bottom line last year was paid to other Lachlan companies for related-party debt and was paid for exclusive use agreements.
These are licensing fees that Nova pays to related parties and the licences are held by three Australian companies which state that they operate entirely in the UK, where they pay tax at 19 per cent rather than 30 per cent in Australia.
This was a great opportunity for the tax law firm to spruik themselves yet it went begging. AFR isn’t what it once was.
More tenuous audience figures that Nova think they can hoodwink agency and direct clients with. Give me a break, it’s laughable how delusion the CRA sector still remain in 2020.
Nova Entertainment expects advertising revenue to be tight for the next 18 months, so has reluctantly moved to initiate some redundancies.
Nova CEO Cathy O’Connor has told radioinfo that, like most other companies, Nova Entertainment has been impacted by the COVID-19 crisis “with an estimated fall in revenue of over 25 per cent this year.”
HT&E Limited, the parent company of ARN, have posted its half year results today. (link)
HT&E revenue down 29%, reported EBITDA down 49%
ARN revenue down 27%, reported EBITDA down 52%
Operating costs reduced by 36% to $6.8m
Nova Perth JV noted as a $4.4 million ‘associate impairment’
It also appears the company is planning to challenge the Australian Tax Office regarding a $49m penalty for its divestiture of its New Zealand assets in 2015/16.
Their retrans agreements are bullshit though, the metro networks are bleeding them dry in that respect, but at the same time when you’re merely a rebroadcaster with no original content, what are you exactly offering??
Nothing will change. Lachie and his board will still demand savings as profits aren’t increasing organically and cost cutting will continue. Nova a shadow of the Paul Thompson era.