Consolidated Media Holdings (CMH) believes it can wrap up a $2 billion takeover deal with Rupert Murdoch's News Ltd within months.
James Packer's media company, which owns 25 per cent of pay TV provider Foxtel and half of Fox Sports, gave an update on the takeover as it unveiled a 15.7 per cent fall in full year net profit on Tuesday.
CMH said some pre-conditions to the deal remained outstanding, including the finalisation of due diligence and approvals from the board of News Corporation and the Foreign Investment Review Board.
CMH executive chairman John Alexander said it was expected the pre-conditions would be satisfied within six weeks.
"It may well be earlier, allowing the parties to finalise the negotiation of the scheme implementation deed," he said.
If the necessary approvals are given, the deal could be completed in the final quarter of 2012.
"However, as the pre-conditions remain outstanding, we cannot give any assurance that a scheme implementation deed will be signed or that a transaction might proceed," Mr Alexander said.
News, which has received the green light for its bid from the competition watchdog, already owns 25 per cent of Foxtel and half of Fox Sports.
However waiting in the wings is billionaire Kerry Stokes, whose Seven Group has signalled it may launch a rival offer.
Seven already holds a 24 per cent stake in CMH.
CMH made no comment about a potential offer from Seven as it reported its statutory net profit for 2011/12 fell to $85.8 million from $101.7 million in the prior year.
Operating profit, which excluded the effect of Foxtel's acquisition of regional pay TV provider Austar and costs arising from the PBL demerger, rose two per cent to $97.9 million, predominantly due to improved profit from Foxtel.
Foxtel - excluding Austar - contributed $42 million to CMH's earnings, up $4.4 million on the prior year.
However, Fox Sports' contribution fell $2.1 million to $49.4 million.
Mr Alexander said Foxtel generated modest subscriber growth, with 1.68 million homes signed up by the end of June compared to 1.65 million a year ago.
"This modest subscriber growth was a result of a tough market and some reluctance by consumers to lock into long-term spending commitments," he said.
He said existing subscribers were happy with their service and were upgrading it, but convincing non-subscriber homes to subscribe was becoming increasingly more challenging.
Mr Alexander said Fox Sports' profitability had not improved as much as CMH would have liked, given softer subscriber numbers at Foxtel and Austar, and the high costs of securing broadcast sport rights.
Morningstar analyst Peter Warnes said the CMH operating result was "pretty reasonable" given it did not include the contribution of Austar.
He said Fox Sport's ability to generate a lift in advertising revenue of almost 17 per cent was impressive when other media were unable to come anywhere near that.
CMH declared a final franked dividend of six cents a share, compared to an unfranked six cents a year ago.
CMH shares were steady at $3.44 at 1340 AEST.
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