Nine reports $592m loss
Nine's profit drops by 2.9% but the company remains optimistic for the year ahead.
Nine’s profit for the 2014-15 financial year has dropped by 2.9% in what CEO David Gyngell describes as a difficult advertising market.
Underlying net profit in the year ended June 30 fell 2.9 per cent to $140.1 million from the year-earlier $144.2 million. Revenue rose 2.6 per cent to $1.61 billion. Analysts were expecting profit of $141.3 million and revenue of $1.58 billion.
Nine delivered a statutory net loss of $592.2 million, stemming from $732.2 million in one-offs, which were largely non-cash associated with the write-down of its TV licence and other balance sheet values.
David Gyngell, Chief Executive Officer of Nine Entertainment Co. said: “In what has been a difficult Free-To-Air advertising market, our June quarter share performance was short of our expectations. However, we are pleased with our improving ratings performance trend over the first couple of months of FY16.
“Our recently announced NRL rights agreement is transformational for Nine. Together with our expectation of improved affiliate terms, the expiry of loss making international programming commitments, and our industry leading debt free balance sheet, we are in a very strong position. We are optimistic about the prospects for Nine as we continue the ongoing integration of our television and digital businesses, focussed on monetising the distribution of our premium video content in an evolving world.”
Over the year, Nine Network’s costs increased by $22m of which more than half was due to the broadcast of the Cricket World Cup.
Nine Network’s Metro FTA revenue share grew 0.2 share points to 38.9% but softened slightly in the second half to 38.6% partly due to the later launch for The Voice and there were “lower than expected ratings for a number of key programs in an intensely competitive environment” at the end of 2014.
However Nine claimed the lead in 25-54, 18-49 and 16-39 demographics in 2014 /15 financial year.