Nine reports a fifth year of ratings improvement
The results are in for the past six months for Nine, showing a 4.7% increase in revenue for the Nine Network, a slip of 35.4% EBITDA for Nine Digital and was Australia’s most watched network in a number of demographics.
Nine has recorded its fifth consecutive year of ratings improvement, according to the interim financial results for the first half of the 2014 financial year.
The Nine network managed to grab the most watched network title for a various demographics; 25-54, 18-49 and 16-39, as well as reporting an audience share growth over all audience demographics.
The costs for the Nine Network were reported as “close to flat” with the five year contracts for the NRL and Cricket and the incremental investments among various programs saving the network from the high costs the 2012 Olympics saw.
Regarding Nine events, total revenue was up 80.7% to $135 million, with EBITDA seeing a 54.8% leap.
Ticketing company Ticketek, which handles the majority of Nine events, saw a 14% jump in ticket sales volumes and a 2.6% revenue increase per ticket.
It was another story in the digital arena, with Nine Digital reporting a slip of 35.4% EBITDA with the network attributing it to “changing product mix and the resultant margin profile”.
Changes to the Mi9 business in June 2014, which was 100% acquired by Nine Entertainment Co last year, are expected to result “in a reduction of web traffic, amongst other things”.
Speaking about the results, David Gyngell, CEO of Nine Entertainment Co. said: “I’m pleased with our performance in the first half. Each of our businesses has performed well and we are making good progress integrating our newly acquired Adelaide, Perth and Mi9 operations.
The launch of the one hour News bulletin at 6pm followed by A Current Affair at 7pm have “shown strong growth and underscore our continuing commitment to deliver the national’s best visual News service”.
“We are confident our positive momentum in the first half will carry through to the full year.”
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