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Profit up for Nine, Stan approaching break-even.

Increased revenue, cuts to licence fees and the sale of Willoughby offices deliver results for Nine.

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Nine has today reported a strong first half in its interim results for the 2018 financial year, bolstered by increased revenue, savings from a cut to broadcast licence fees and the sale of its Willoughby offices.

Nine announced a net profit of $174 million, which included $58 million primarily from the sale of Willoughby, compared with a $236.8 million loss in the same period last year, the bulk of which was a non-cash write-down on the carrying value of its broadcast licence and a provision to exit its Warner Bros life of series obligations.

Net profit, excluding significant items, was up 55 per cent to $116.2 million, compared with $75 million a year earlier.

The metro free-to-air advertising market recorded its first half of growth in two and a half years in the six months to December 31.

Hugh Marks, Chief Executive Officer of Nine Entertainment Co. said: “This was a strong half for Nine, across our entire business. Positive Free To Air TV ratings momentum combined with our focus on the 25-54 yr demographics is translating to improving revenue share. In Digital, 9Now is experiencing strong revenue growth and our digital publishing business has strong growth in premium revenues in line with our future strategy. Finally, Stan is now approaching break-even and looking to further consolidate on its leading local position in this market.

“We are the only Australian media business with this unique set of video-based assets, combining the enduring strength of Free To Air TV with high growth businesses in each of BVOD, SVOD and Digital Publishing. Nine’s strong cash flow and relatively ungeared balance sheet gives us the confidence to continue to prudently invest in our future across these four businesses.

“Nine’s strengths lie in premium content and therein is the opportunity. To harness the growth in viewing across different platforms and distribution models, and optimise the total return on our content spend. We will continue to invest in our future – there is much work still to do but as can be seen from these results, the benefit to our shareholders is becoming increasingly clear.”

Nine cited active subscribers for Stan at around 930,000 with revenue growth of 83%, and a cost increase of 29%.

“In digital, 9Now is experiencing strong revenue growth and our digital publishing business has strong growth in premium revenues in line with our future strategy.”

Nine said Australian Ninja Warrior was a “breakout performance” for the network and credited the “enduring dominance” of The Block for driving ratings growth.

Nine noted that while its revenue share is expected to grow in the second half of this fiscal year, major events on a “competing network will limit this potential”, including the Winter Olympics in South Korea and Gold Coast Commonwealth Games on Seven.

Source: AFR.com.au, AdNews

4 Responses

  2. I find it odd Nine would make a comment like “competiting networks will limit this potential” RE: Olympics and Comm Games.

    That’s essentially telling your advertisers ‘hey look, we had a great 2017, we expect to have a great 2018 but … We will get smashed during these two major events by a network we don’t even want to name because we’re being petty’. Sorry if that was written a bit condescending, but seriously?

    A final point, MediaWeek reported that Nine’s weekly ratings presser on Sunday had a big dig at MKR, saying “and that show continues it’s rapid freefall” or something? Again, why does any network need to comment on shows that aren’t their own? Other than having sour grapes they’re being owned by the Winter Olympics and don’t want Married’s good performance to be ‘watered down’ due to the distant second place shares Nine have been getting 12 nights…

    1. Nine is just being realistic and saying that their revenue in the first half of 2018 will be lower because of the @l^mp!cs and Commonwealth Games. Don’t worry Nine will be using rating figures without them when setting advertising rates for 2019. Did Marks manage to describe MAFS and Ninja Warrior as “premium content” with a straight face?

      1. Oh yes, I’m sure Nine and Ten will ‘exclude’ them from survey come end of year, which was always the norm. Though the rights holder usually compiled two tables – shares including and shares excluding Olympics / Comm Games.

        However for the first time, Seven changed this standard in 2016, not putting a focus on exclusion and including Rio 2016. Which personally I believe should be the norm, networks know they both come around every 4 years and are always during survey.

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