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Packer said he should pay PBL

11/2/2001

"I should pay PBL this year." James Packer summed up his year at the helm of Publishing & Broadcasting with a throwaway line yesterday.

The joke, which drew a laugh from those assembled for the PBL annual meeting, came after a shareholder commended the 34-year-old executive chairman and his father, Kerry Packer, on their decision not to pay themselves a salary from PBL last financial year.

The two men drew as well no salary the previous year. Mr Packer took the opportunity at the annual meeting in Sydney to again say sorry for PBL's disastrous foray into telco One.Tel.

Now One.Tel is in liquidation after it collapsed under huge debts in May.

The Australian Securities and Investments Commission is investigating potential breaches of corporate law by One.Tel directors in a case, which returns to the NSW Supreme Court in December.

The failure of One.Tel cost PBL $327 million in lost investment and contributed to PBL recording an $85 million loss for the June 30, 2001 year.

Mr Packer said, his voice unsteady at times throughout the meeting "This outcome has been a considerable disappointment for the group and, as you are aware, I have express regret to our shareholders,"

"I apologize to you all again today. We have learnt a number of painful lessons to better structure and manage our investments going forward."

Mr Packer said one of those investments going forward will be an Internet casino would be launched in January.

The new business enterprise, Crown On-line, will be based in the Pacific island nation of Vanuatu.

Mr Packer said "This was not our preferred location. We tried very hard to establish Crown On-line in Australia, which would have created Australian jobs. However, the regulatory hurdles were simply too difficult,"

Across PBL's businesses Mr Packer forecast double-digit growth in profitability in the ACP magazine business for 2002 after it recorded a 17 per cent drop in earnings to $93.8 million in 2001.

Mr Packer also indicated discussions between PBL and its fellow shareholders in the Foxtel pay television business ? News Corporation and Telstra ? were nearing resolution.

"Foxtel has an incredible opportunity," he said. "It has the capacity to be the BSkyB of Australia."
Across PBL's businesses Mr Packer forecast double-digit growth in profitability in the ACP magazine business for 2002 after it recorded a 17 per cent drop in earnings to $93.8 million in 2001.

Mr Packer also indicated discussions between PBL and its fellow shareholders in the Foxtel pay television business ? News Corporation and Telstra ? were nearing resolution.

"Foxtel has an incredible opportunity," he said. "It has the capacity to be the BSkyB of Australia."

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