TV Licence Writedown Sees Nine Post $203m Loss

TV Licence Writedown Sees Nine Post $203m Loss
SHARE
THIS



Nine Entertainment has reported a $203.4 million loss for the last financial year, primarily due to writedowns of its TV licence and exit from its contract with US film studio Warner Bros.

Nine’s $203.4 million loss for the 12 months to 30 June 2017 was in stark contrast to the $33.2 million profit it posted for FY16.

The result was largely due to $327 million in impairments, which included a $260 million writedown of Nine’s broadcast licence, and a $85 million provision to exit its life of series obligations with Warner Bros. on a number of US television dramas and comedies, which were both noted in the group’s half-year results.

Excluding the $327 million in impairments, Nine posted a profit of $123.6 million, compared to last year’s $120.3 million result.

Overall revenue for Nine was down 3.5 per cent in FY17 to $1.24 billion, while group expenses before interest, taxes, depreciation and amortisation rose 1.9 per cent to $205.6 million, which was inclusive of the $33 million benefit from the regulated removal of licence fees for the year.

Nine’s TV revenue fell 4 per cent over the 12-month period to $1.08 billion, while its digital division experienced a 3.2 per cent revenue rise to $154.7 million.

Commenting on the results, Nine CEO Hugh Marks said: “The strategic work we did over the past 18 months to reshape our content offering has delivered outstanding results that will benefit our entire business in the mid-term.

“Our leadership position in key advertising demographics is continuing to strengthen as we progress through the calendar year. We are consistently growing advertising revenue share in FTA television, on-demand television and digital publishing.

“At the same time, our group-wide focus on costs continues to reap rewards. Overall and free-to-air costs were down a further 1 per cent and 2 per cent respectively (excluding the impact of the long-awaited licence fee relief). Including licence fee relief, our group wide costs were down 5 per cent.

“With a strengthening balance sheet, and significant operational momentum and leverage, Nine enters the new financial year in a much stronger position. Our focus on creativity and content has never been clearer.

The options available for us to monetise our content have never been more diverse. The media world of the future is video-based, and we are right at the forefront of it in Australia.”

Please login with linkedin to comment

Latest News

Why We Should Stop Calling Millennials “Narcissistic Owners Of Participation Trophies”
  • Marketing
  • Opinion
  • Partner Content

Why We Should Stop Calling Millennials “Narcissistic Owners Of Participation Trophies”

In this guest post, David Willey (pictured below), founder and director of Growth Tank and the Millennials Marketing Conference, shares his views on why marketers need to start looking at Gen Y in a more positive light. Lazy, entitled, self-absorbed, impatient – all ring true as common adjectives used to describe Millennials. Surrounded with negativity, they […]

Opinion

by B&T Magazine

B&T Magazine
PUSH Collective Appoint Mark Hobart As Strategy Director
  • Marketing

PUSH Collective Appoint Mark Hobart As Strategy Director

Brand consultancy PUSH Collective has recruited Mark Hobart to a newly created role of strategy director, to support the business in its continued expansion. Hobart joins PUSH from Kantar TNS in Melbourne, where he led the innovation practice, consulting to clients including Coca-Cola, L’Oreal, Mars, AGL and Telstra. Previously, Hoabrt was the global account director for Vodafone at Kantar […]

Allure Media Appoint Ali Krzyszton As Partnerships Director
  • Media

Allure Media Appoint Ali Krzyszton As Partnerships Director

Allure Media has announced the appointment of Ali Krzyszton as its newest partnerships director, heading up the Fairfax-owned publisher’s  lifestyle division. This senior hire will deliver on the fast-growing digital publisher’s ambitious growth plans in the brand partnerships arena for 2017. “The decision to focus on long-term partners, as opposed to quick clicks, is very much […]

Zenith Sydney MD Karen Halligan To Depart
  • Media

Zenith Sydney MD Karen Halligan To Depart

Zenith Sydney's Karen Halligan has pulled-up stumps, although that's not to infer bad light had anything to do with it.

by B&T Magazine

B&T Magazine
PR Agency Hotwire Rebrands
  • Marketing
  • Media

PR Agency Hotwire Rebrands

PR agency Hotwire has rebranded, yet sadly not to "Hot Cocks Who Rock Your Socks Off". Which would've been far cooler.

Challenger Agency VCCP Wins Creative Account For Torrens University Australia
  • Advertising

Challenger Agency VCCP Wins Creative Account For Torrens University Australia

After a competitive pitching process involving five agencies, Torrens University Australia has appointed challenger agency VCCP as its new brand strategy partner and creative agency for 2018. Acclaimed for its work on dynamic brands including ING and Compare the Market in the financial services sector, Laureate Australia CMO Anne Da Cunha said VCCP’s reputation as […]

GumGum Appoints Ansible’s Sarah Baskerville As Victorian Sales Director
  • Advertising
  • Technology

GumGum Appoints Ansible’s Sarah Baskerville As Victorian Sales Director

AI advertising company GumGum has announced the appointment of Sarah Baskerville as its sales director for Victoria. Baskerville joins GumGum from Ansible, where she spent two years as its Melbourne mobile director. Prior to joining Ansible, she was head of specialist sales and partnerships at News Corp Australia, and also held a number of sales […]

The Diamond Concierge Gives Away $85K Ring In Campaign By McCann Queensland
  • Advertising
  • Campaigns

The Diamond Concierge Gives Away $85K Ring In Campaign By McCann Queensland

McCann Queensland’s second instalment of ‘The 5th C’ campaign launched over the weekend for online diamond retailer The Diamond Concierge, which received over 47million views around the world in the first 48 hours of it being released. In this second phase of the campaign, The Diamond Concierge gave away an $85,000 diamond ring, with Gold […]

Sparro Recruits Key Account Director Following Client Wins
  • Marketing

Sparro Recruits Key Account Director Following Client Wins

Digital marketing agency Sparro has announced the appointment of Hannah Jones (pictured above) as a key account director following a spate of client wins. Jones joins Sparro’s senior team alongside founders Cameron and Morris Bryant, overseeing a portfolio of accounts that includes Webjet, Domino’s Pizza, TAFE NSW, Temple & Webster, F45 Training and Bing Lee. […]

Women’s Health’s Jacqui Mooney On Driving A Women’s Brand In An Evolving Industry
  • Media

Women’s Health’s Jacqui Mooney On Driving A Women’s Brand In An Evolving Industry

In an industry facing change, Jacqui Mooney, editor of Women’s Health believes brands such as hers will continue to be a constant. Please note: this article was contributed by Magazine Networks. The magazine industry may be seeing substantial change but Jacqui Mooney has a goal that remains firm: to create happier, healthier lives for Australian women. […]

Why Consumer Brands Are Failing Aussie Mums
  • Marketing
  • Opinion
  • Partner Content

Why Consumer Brands Are Failing Aussie Mums

Is your game chainsaws or large marlin wall-hangings? Can't seem to attract the mums? This couldn't come soon enough.

Opinion

by B&T Magazine

B&T Magazine
Network Ten Creditors Approve CBS Deal
  • Media

Network Ten Creditors Approve CBS Deal

It seems the fight for Ten between CBS and media moguls Lachlan Murdoch and Bruce Gordon may finally be over.

by B&T Magazine

B&T Magazine
MKTG Signs Exclusive Commercial Partnership With PlayersVoice
  • Marketing
  • Media

MKTG Signs Exclusive Commercial Partnership With PlayersVoice

MKTG has announced it has signed an exclusive commercial partnership with newly-launched sports storytelling site PlayersVoice.com.au – an agreement that will see the agency move into a new territory of sports marketing. The partnership between MKTG and PlayersVoice will see the business managing brand partnership opportunities for the new platform; working with clients to deliver […]

Domo Introduces New Data Security Software Solution
  • Marketing
  • Technology

Domo Introduces New Data Security Software Solution

Domo has announced it has introduced new cloud security technology for its Bring Your Own Key (BYOK) software, which includes unique capabilities like rolling generation of data encryption keys and a built-in kill switch. Domo BYOK is the first BYOK enterprise software solution for cloud analytics and business intelligence, and builds on the company’s existing security, compliance and […]

Shopper Media Group Grows Sydney & Melbourne Sales Teams
  • Advertising
  • Marketing
  • Media

Shopper Media Group Grows Sydney & Melbourne Sales Teams

Shopper Media Group (SMG) has continued to grow its Sydney and Melbourne sales teams to keep up with the demand for Smartlite Panels for shopping centres. Ashley Munro joins SMG as group sales manager for Sydney, having previously worked in a similar role at NOVA Entertainment. Laura Mason has been appointed as SMG’s business manager […]