Nine Entertainment hikes full-year dividend by 33% as profits surge higher

Nine Entertainment profits jump 35% as leading ASX media stock hikes its fully franked dividend.

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The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price is up 9% to $2.18 in Thursday trading after the media company reported full-year revenue up 15% to $2.69 billion and net profits after tax up 35% to $373.5 million.

The company declared a fully franked final dividend of 7 cents per share, taking total FY22 dividends to 14 cents per share, an increase of 33% compared to FY21.

The Nine Entertainment final dividend will be paid to eligible shareholders on 20 October 2022. Nine Entertainment shares go ex-dividend on 9 September 2022. 

Based on the Nine Entertainment share price today, the stock trades at more than 10.6 times earnings and on a fully franked dividend yield of 6.4%.

Looking ahead, Nine Entertainment said: "The new year has started on a positive note in terms of audiences, across all platforms, and while broader economic conditions have become more uncertain, the advertising market to date, has remained resilient."

Over the past 12 months, Nine Entertainment shares have lost 19%, compared to a fall of 6% in the S&P/ASX 200 Index (ASX: XJO). By contrast, fellow media company Seven West Media Ltd (ASX: SWM) shares have gained 5% in the last year.

Motley Fool contributor Bruce Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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