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David Gyngell tips Nine to overtake Seven within 18 months

CEO David Gyngell has said Nine will take a 40 per cent revenue share and outrate Seven within 18 months.

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2014-02-27_1418Nine CEO David Gyngell has said Nine will take a 40 per cent revenue share and outrate Seven within 18 months.

In its first half-yearly results revenues rose from $657 million to $803 million as Nine Network, the television business, reported its fifth consecutive year of ratings improvement.

On a pro-forma basis, revenue increased 9 per cent to $846 million and EBITDA by 17 per cent to $189 million.

Chief executive David Gyngell said he was “pleased” with the performance and the company was “making good progress” integrating its newly acquired Adelaide and Perth television operations and its now fully-controlled Mi9 operations.

But he also predicted TEN would struggle to lift its audience share this year above 21 per cent, suggesting their schedule was “empty” and there was nothing in the “pipeline” would help deliver a bounce.

“I don’t believe Channel TEN will get anywhere near the share that has been quoted,” Gyngell said. “I do not agree that TEN will get to a 24 per cent share in two years. That gives us confidence that we believe we can get our 40 per cent share in by the end of next year.”

He indicated Nine would not be buying the next Olympic rights.

“I’m looking for a very consistent and not lumpy business. It’s the stuff off the back of it, not the event itself. In 2012 we launched a bung off stuff off the back of it. When you don’t have that you get a problem. TEN is doing that now. They didn’t commit to Channel TEN enough,” he said.

However yesterday TEN completed its $200m refinancing of its loan facilities and was ready to invest in new programming.

Update: A TEN spokesperson said: “It wasn’t that long ago that Nine was on the brink of insolvency. Now David is using his maiden profit results presentation to attack TEN. He, of all people, should know that media companies’ fortunes can and do change.”

Source: smh.com.au, Mumbrella, AdNews

23 Responses

  1. These things are cyclical. Years ago 9 had all the big hits and 7 got all the duds and 9 was winning the ratings all the time. Now 7 get big hits and 9 has had a few duds. I don’t see why 9 can’t start getting big hits again and win the ratings again.

  6. Ten are like Qantas, their viewers don’t love them anymore and have lost faith in them. Ten over the past 2 years has been it’s own enemy by moving successful shows to different days and timeslots, Ten needs to realise once a show has a good base you should never move it because then you have to try break viewers habits on that other day you move the show to and that’s nearly impossible. I just hope they start to listen to us soon or they will go down further

  8. Channel 9 is the worst channel ever their is no way they will overrun Channel 7 in the ratings. Channel 7 have always and will always be the best channel 🙂

  10. I cant remeber the last time i watched channel nine .oh yes i can lAst year when the voice was on . Big statement there gyngell.Typical nine always beating their chests. I predict ten wlil over take nine in 36 months time

  13. Whilst his predictions may eventuate, the main question is will this happen because of his leadership or in despite of it?
    As network Seven’s arrogance,attitude and utter disrespect of their current viewers, it maybe more of a question of them emulating the Network Ten Syndrome, as we are all witnessing what happens when the faithful slowly drift away, where many find satisfaction elsewhere amongst other entertainment mediums on offer.

    Regardless of how many millions$ they promise to give away, but never seem to reach that target, or jackpots seemingly ambiguously flogged prior to a draw that may trap/entice the unwary, otherwise every pre-draw promo after 4-30 pm would simply say ‘ Now its to late to enter in this jackpot draw’ but why not watch the draw to see if it goes off.

  14. Gyngell will be eating Humble Pie, very similar to the one served on MKR 2 nights ago.
    Wishful thinking on his behalf !
    Structurally Nine is a very expensive business to run. Just read their financials!

  15. @Harry – Gyngell came back 7 years ago, in 2007. His results over the past 7 years haven’t been what one would expect from “the best television CEO in Australia “.

  17. Nine to overtake Seven within 18 months… in a race to the bottom of the good taste barrel.

    But of course Seven can be expected to claw back most of this advantage when Schapelle eventually returns to Australia and is able to tell her story to the delight of the bogans.

  19. He wishes. Problem is channel nein has become the “bogan’s mate” and the bogans are already watching it to saturation point (what’s a computer?) so there’s no way up for their ratings to rise…

  20. everyone kicks ten while they are down. What he said was just obvious.

    However 7 are still going to have the shows that have out them up the top but I guess there day has to end sometime.

    Im sorry i still chuckle when I remember reading a ch9 guy say top gear will be the #1 show

  21. If and when they do overtake Seven, I wonder if they will re-introduce the “Still the One” slogan. I love it that they haven’t been able to use it for years now.

  22. bit hypocritical for him to criticise ten’s poor post-olympic schedule. after London 2012 9 dished up a very weak schedule, didn’t win a single week between london and the end of the year, didn’t do well in demos either. they were doing much better in the quarter before the olympics with The Voice season 1 and a very strong season of The Block.

  23. There is confidence and there is arrogance and its a fine line…..this sounds a bit like the latter. Does he think ch7 will just say ‘yeah go on and help yourself, we will do nothing?’

    ….and its not exactly difficult to put forward views on ch10s current position

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