Can Thorney Sustain Gains Amid Media Sector Headwinds and Market Volatility?
Thorney Opportunities Ltd has returned to profitability with a $6.55 million net profit for the half-year ending December 2025, declaring a fully franked interim dividend and continuing its share buy-back program.
- Net profit after tax of $6.55 million, reversing prior period loss
- Declared fully franked interim dividend of 1.1 cents per share
- Net tangible asset backing per share increased to 93.1 cents after tax
- Maintains over $33 million in cash for investment opportunities
- Continued on-market share buy-back nearing completion
Strong Half-Year Financial Turnaround
Thorney Opportunities Ltd (ASX: TOP) has reported a significant turnaround in its financial performance for the six months ended 31 December 2025, posting a net profit after tax of $6.55 million compared to a loss of $1.07 million in the prior corresponding period. This improvement was driven primarily by a marked increase in the net market value of its listed securities portfolio, particularly in the financials, infrastructure, and resource services sectors.
The company’s net tangible asset backing (NTA) per share after tax rose to 93.1 cents, up from 90.3 cents at the previous half-year, reflecting the underlying strength of its diversified investment portfolio.
Portfolio Highlights and Strategic Investments
Key contributors to Thorney’s performance included Southern Cross Electrical Engineering Limited, which benefited from robust infrastructure demand and disciplined project execution. Other notable holdings such as Solvar Limited, Consolidated Operations Group, AMA Group, and Zip Co Limited also delivered solid operational improvements and earnings momentum.
Thorney’s 25% stake in 20 Cashews Pty Ltd, which holds significant interests in Australian Community Media and View Media Group, experienced a reduction in carrying value, reflecting ongoing challenges in the traditional media sector amid macroeconomic headwinds. Nevertheless, View Media Group continues to execute its strategic plan to disrupt the digital real estate market, while Australian Community Media is undergoing a comprehensive business transformation.
Capital Management and Shareholder Returns
The company declared a fully franked interim dividend of 1.1 cents per share, signalling confidence in its balance sheet and future prospects. Notably, the Dividend Reinvestment Plan will not apply to this interim dividend, indicating a preference for cash returns to shareholders.
Thorney also maintains a strong liquidity position with over $33 million in deployable cash, providing flexibility to capitalise on emerging investment opportunities amid market volatility. The ongoing on-market share buy-back program, aimed at narrowing the discount between the share price and NTA, has seen over 32 million shares repurchased at an average price of 58.95 cents, with the buy-back period set to conclude shortly.
Outlook Amid Market Uncertainties
Chairman Alex Waislitz highlighted the challenging macroeconomic and geopolitical environment but emphasised that such volatility often creates opportunities for well-capitalised and patient investors. The company’s disciplined investment approach, active portfolio management, and liquidity position are expected to support sustainable returns through market cycles.
While the media sector investments face headwinds, the broader portfolio’s resilience and operational improvements in key holdings provide a solid foundation for future growth.
Bottom Line?
Thorney’s strong half-year rebound and disciplined capital management set the stage for navigating ongoing market uncertainties.
Questions in the middle?
- How will Thorney’s media sector investments perform amid continuing advertising and digital disruption challenges?
- What new investment opportunities might the company pursue with its substantial cash reserves?
- How will the completion of the share buy-back program impact the company’s share price and investor sentiment?
