Hoyts plans digital expansion with Kirk

Mr Kirk, who was ousted from Fairfax in December, took up the newly created position at the debt-laden company yesterday after nearly seven months in the wilderness.

He said in a statement he looked forward to assisting the company in its "next stage of development, particularly the roll-out of digital cinemas".

He told the Herald he had not set his heart on returning to media, but bided his time until the right opportunity came up. "I've just enjoyed the break. Running a public company is a relentless and tiring business," he said.

The private equity firm Pacific Equity Partners paid $440 million, including more than $100 million of debt, in 2007 to Publishing and Broadcasting Limited and West Australian Newspapers for the cinema chain and its ad business, Val Morgan.

Commenting on Mr Kirk's appointment, the director of Hoyts, David Grayce, said: "He has great experience in business, in particular in media and entertainment, that we think can be very helpful to us."

Mr Kirk's contract is open-ended. The company said the management team of Delfin Fernandez and Graeme Yarwood, who head up Hoyts and Val Morgan, respectively, would report to Mr Kirk.

Growth would come from improving the cinema experience such as plusher seating and digital screens rather than from any "silver bullet", Mr Grayce said.

PricewaterhouseCoopers forecasts that by 2012 the $96 million cinema ad market will grow by 3.7 per cent a year to $100 million and box office admissions will grow by a similar increment to $1 billion.

Hoyts owns 45 cinemas with more than 400 screens in Australia and New Zealand.