PBL says continuing to focus on growing its margins

SYDNEY - Media and gaming group Publishing and Broadcasting Ltd says it is continuing to focus on growing its margins.

Executive chairman James Packer said also that the company's new structure gave it a platform for growth.

"In conclusion, we continue to focus on margin growth; on ways to improve our businesses, and investing in the future," he told shareholders at the company's annual general meeting.

"In the last year total shareholder return has increased by more than 25 per cent and we remain committed to drive PBL from both our core businesses, and our investments, in order to maximise shareholder value and worth."

Mr Packer said 2005/06 was a watershed year for the company as it diversified.

"However, a bigger achievement has been the significant repositioning of the company, as we announced last week, which will give a platform for growth in our core businesses of media, entertainment, gaming and on-line," he said.

PBL last week announced the creation of a new company PBL Media, which will hold some of its key media assets including Channel Nine and ACP Magazines.

PBL will own 50 per cent of the new company with private equity group CVC Asia Pacific holding the other half.

Under the deal, PBL receives cash proceeds of A$4.54 billion ($5.28 billion).

"In our media businesses, soon to be operated under PBL Media but managed and controlled by PBL, we are launching Australia's first truly integrated media company," he added.

Mr Packer said Nine had won the ratings race for this year and was focused on profitability.

"The Nine Network experienced a difficult year in 2006 as competitive pressures increased and revenue tightened," he said.

"The new management team is focused on making Nine a more profitable business."

- AAP