Nine’s Liberal party fundraiser a mistake, Peter Costello admits

The board of Nine Entertainment has vowed never to host a political fundraiser on its premises again, chairman Peter Costello has revealed at the company’s annual general meeting, but declined to say how much was raised at the controversial event that was held for the Liberal party in September.

Costello also confirmed that the boycott by some advertisers of Alan Jones and 2GB had affected the bottom line at Macquarie. He said Nine had made it clear to Jones that his comments about Jacinda Ardern were “unacceptable and offensive”.

Costello told shareholders in Sydney the board had discussed the Liberal fundraiser and agreed with chief executive Hugh Marks that it was a mistake to host the $10,000-a-head dinner in the broadcaster’s TV studios.

“The board has discussed its role and has decided we will not be holding any political fundraisers at our premises,” Costello said in response to a question about who made the decision and how much was raised.

Costello said it was Marks’ decision and he had “openly admitted” it was a mistake.

Related: Karl Stefanovic to return to Today program after Channel Nine reverses axeing

Marks previously said it was a mistake to host the event after group executive editor of the Age and the Sydney Morning Herald, James Chessell, told staff the event was “regrettable” because many staff felt it could “temporarily tarnish our reputation for independence”.

Tuesday’s meeting was the first annual general meeting since Nine merged with Fairfax Media and took full control of Macquarie Media. The diversified media company reported mixed results from its television, streaming, radio and news businesses.

Nine’s revenues, including Fairfax, were $2.3bn for the year to June 2019 and group earnings before interest, tax, depreciation and amortisation rose 10% to $424m.

Nine’s streaming business Stan and video-on-demand arm, 9Now, both performed well but its real estate division Domain and the free-to-air stations were down.

“Operationally, our businesses are performing well,” Marks said. “We are continuing to invest in technology and content, and are outperforming in the context of the markets in which we are operating.

“Moreover, the changing mix of our asset base means that we are no longer reliant on any one part of the market.”

In August Jones said prime minister Scott Morrison should shove a sock down the New Zealand prime minister’s throat to stop her talking about climate change.

“Alan knows he must stay within the laws of decency and defamation,” Costello said.

Related: Climate scientist says Sky News commentators misrepresented his views on drought

Marks said radio and free-to-air television had experienced “soft market conditions in the current half exacerbated for Macquarie by the advertiser boycott around the Alan Jones’ program on 2GB”.

“We are confident that full ownership by Nine from November will underpin improved performance, both in terms of reduced costs and the potential for incremental revenue on a medium-term basis,” Marks said.

Costello confirmed Nine had adopted the charter of editorial independence it had inherited from Fairfax and everyone from board level to management to journalists had been “scrupulous” in adhering to it.

“Of course, our business will also include opinion, as well as news,” Costello said.

“It should be clear which is which. Our opinion will not be uniform. As I mentioned before, our journalists and commentators are independent and free from managerial direction. They will have different views. And because our company is now across diverse media, we are serving a very wide cross-section of the public. Our range of opinion must be broad and diverse. But it must also be within the laws of defamation and respect public decency.”

Costello and Marks said the decision to publish a photograph and story about Nine star Karl Stefanovic on page one of the Sydney Morning Herald instead of a bushfire story was a matter for the editors, and had nothing to do with Nine.

The Herald has been criticised for running the Stefanovic story on the front page and the bushfires on page 7.

“The Herald has earlier Saturday print deadlines than our competitors and decisions about front page placement need to be made well before 7pm,” executive editor James Chessell said. “The full extent of Friday’s deaths and property losses were not known until Saturday morning. The Today story was an interesting exclusive interview and gave us our best original picture. The Herald’s overall coverage of the fires including the politics has been comprehensive.”