The Nine Entertainment Co Ltd (ASX: NEC) share price is up 8% today, despite the newly-merged media and free-to-air television business releasing no specific news to the market. However, there is a reason the share price is climbing today.
Nine Entertainment now owns nearly 60% of Domain as the operator of property classifieds website domain.com.au and today's better-than-expected result out of Domain has helped lift the Nine share price.
Many business commentators have suggested the main appeal for Nine's management in its takeover of Fairfax was the opportunity to own the Domain asset that has grown strongly over the past 6 years, even if today's result showed profits going backwards.
Domain posted a 14% profit fall to $21.1 million on flat revenue of $183.9 million, but the stock is up 16% today as investors breath a sigh of relief that it's performance has not shown too much adverse effect from falling property listings.
Nine is now the biggest media company in Australia and the merger only came about after the removal of media laws that restricted any single company having too much control over different markets.
It will hand in its full year results on February 21.
