Nine Reports Steady First Half-Year Profit Despite Drop In TV Revenue

Nine Entertainment Co. has released its H1 FY19 results for the six months to December 2018, reporting a steady first half-year net profit of $172m, down one per cent on the previous corresponding period.

While Nine’s television revenue has dropped, its new entities, Stan and Metro Media, have continued to grow.

According to the first half year results for Nine, which come after the Fairfax merger, TV revenue was down from last year’s $616.6m to $563.5m, a fall of 11 per cent.

Other first-half findings include:

Strong FTA share and double digit cost reduction, offsetting weakness in the FTA market
39 per cent growth in Digital & Publishing EBITDA underpinned by >50 per cent growth in both Metro Media and 9Now
Broadly flat contribution from Domain (ex Consumer Solutions businesses) in a cyclical housing market
Close to 1.5m active subscribers at Stan, growth of more than 60 per cent over the 12 months, with Stan expected to move into profit from Q4

Nine CEO Hugh Mark said: “The merger with Fairfax has created Australia’s pre-eminent media company, with a diverse suite of assets that now reach more Australians each week than those of any other local media company.

“This half year result is a testimony to the new Nine. With around 55 per cent of our revenue coming from a stable base of broadcasting and 45 per cent coming from businesses that are in strong long term growth markets.

“Meaning we’ve been able to grow EBITDA through a more demanding operating environment, at the same time investing for the future of our business.

Nine is now uniquely positioned through the combination of the operating strength of our traditional media assets as well as an increasing exposure to the continued transition of the market towards digital media assets”.

Meanwhile, The Australian has reported Nine Entertainment is pushing ahead with the sale of its regional and community newspapers and its New Zealand operations, following its $4 billion merger with Fairfax Media and rise in first-half earnings.

Nine said it’s “exploring potential value maximising opportunities for its non-metropolitan media assets, namely Australian Community Media and Printing (ACM), Stuff New Zealand and events”.

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