Ninemsn revenue jumps as owner of Business Spectator discusses sale

The chief executive of online display advertising giant and news portal ninemsn has tipped a strong year for the joint venture, after it posted a slight rise in full-year profit, with rising costs cancelling out a near 30% rise in revenue.

Ninemsn – owned by Microsoft and Nine Entertainment Co, and owner of the group buying site Cudo – delivered a $31.3 million net profit for the year to June 2011, up from $30.4 million the previous year. Revenue soared almost 30% to $178.3 million, according to Australian Securities and Investments Commission figures.

Employee expenses jumped 30% to $50.7 million, commissions soared 70% to $39.6 million, and advertising expenses tripled to $15.1 million, the Australian Financial Review reports.

Chief executive Mark Britt told the paper that ninemsn would capitalise on growth in online advertising in the 2012 fiscal year.

“In 2012, we are watching the economy and market with interest, but expect ninemsn’s results to continue to be strong, as online advertising continues to take revenue share from other media as it catches up to the internet’s share of the time people spending using media,” Britt said.

He added that ninemsn planned to rise to the challenge of search engine giant Google and capitalise on opportunities presented from the world’s most popular social networking site, Facebook.

The comments come as speculation heightens that Australian Independent Business Media, publisher of business news and commentary site Business Spectator and investment publication Eureka Report, will be sold.

AIBM’s chairman, editor in chief and shareholder Alan Kohler has confirmed that an information memorandum has been distributed to potential buyers, with News, newswire Reuters, Euromoney and Morningstar named as potential buyers.

Fairfax Media, which recently paid $35 million for a 50% stake in a rival Melbourne real estate publication set up by a former Age staffer Antony Catalano, is another potential buyer, although the media group recently advertised for a general manager for InvestSmart, “Australia’s No. 1 independent financial website offering retail investors with low cost access to quality financial information and products”.

AIBM is owned by columnists Kohler, Stephen Batholomeusz, James Kirby and Karen Maley, as well as Private Media chairman and shareholder Eric Beecher, and businessmen Mark Carnegie and John Wylie. Previous estimates value the business at $50 million.

Following the establishment of Eureka Report, Business Spectator was started in 2007, which was complemented by sister sites Technology Spectator, Climate Spectator and management and CEO sites.