Shares in Prime Media Group are at a 15 month high after the regional television broadcaster upgraded its profit forecast due to the federal government's abolition of licence fees.
Prime Media now expects to make a net profit before significant items of between $33.5 million and $35 million in the 2016/17 financial year, up from its previous forecast of between $29.5 million and $31 million.
The federal government this week said it will abolish broadcast licence fees for 2016/17 - estimated at $127 million for the industry - as an interim measure while media reform legislation is stalled in parliament
Communications Minister Mitch Fifield said on Wednesday the interim fee cut will help businesses facing pressures from technology and online streaming services.
Prime Media's profit forecast upgrade follows similar moves by Nine Entertainment and Southern Cross Media.
Shares in Prime Media, which broadcasts in northern and southern NSW, the ACT, Victoria, the Gold Coast and all of regional Western Australia, gained two cents to 36.5 cents, after rising 4.6 per cent on Wednesday.
The shares are at their highest level since early April 2016.
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