The trend of negative half-yearly results for the free-to-air TV networks continues, with Nine Entertainment (NEC) announcing a $236.9 million loss this morning.
The loss is a big swing away from Nine’s $320.8m profit a year earlier, while the group’s underlying profit was $75 million in the six months to 31 December 2016 – down 4.3 per cent year-on-year.
Nine’s revenue dropped 4.5 per cent to $659.2 million in the six month to 31 December 2016, while its earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 6.4 per cent to $119.7 million.
The group’s TV division saw a 5.3 per cent drop in revenue to 578.2 million during the first half of FY17, which it said reflected a lover revenue share in a “soft” free-to-air market, negatively impacted by last year’s Rio Olympics coverage by rival Seven.
Consequently, the Nine Network’s EBITDA was down 9.2 per cent to $109.4 million over the six-month period.
Nine reported a $260 million non-cash impairment in the goodwill of its metro free-to-air TV business during the period, accounting for “the discrepancy between previous book value and the current market value of NEC”.
The group has also provisioned $85 million to exit its life of series obligations with Warner Bros. on a number of US television dramas and comedies.
“Concluding this component of the output deal gives Nine certainty in relation to this obligation and increased flexibility in relation to future content spend,” Nine said in a statement.
“The associated cash payment will be made over FY18 and FY19.”
The group’s digital business also experienced a small revenue decline – down 1.6 per cent to $78.3 million – but its EBITDA was up 13.3 per cent to $13.8 million.
Hugh Marks, CEO of Nine Entertainment, said he was pleased with the group’s progress over the last six months, noting that it has delivered on its commitment to compete more effectively in the free-to-air TV space at the start of the 2017 ratings year.
“Over the past year, we have made significant progress in rebuilding our free-to-air business,” he said.
“Nine Network won all prime-time key demographics post the Olympics in 2016. And for the important start to season 2017, Nine’s audiences are up 13 per cent and commercial audience share up 3.9 points.”
Marks also praised the strong growth of its on-demand businesses.
“Our AVOD platform, 9Now, has more than 2.9 million registered users, providing a growing first-person database that enables our advertisers to target audiences and will ultimately deliver Nine higher yielding revenue,” he said.
“Our SVOD joint venture Stan is clearly leading the domestic players[s] in a growing space with more than 700,000 active subscribers and heading towards positive cash flow during FY18.”
Nine will pay a full-franked interim dividend of 4.5 cents on 19 April.
OOH transit company Adflow has announced the success of the first phase of its regional expansion program. Adflow’s regional footprint has increased by 60 per cent to now include 65 regional locations. With 9.1 million people living regionally in Australia (growth of 1.1 per cent experienced in the 19/20 Financial year) and most regional centres […]
Freshworks, a leading software company, has started trading on the Nasdaq Global Select Market, marking an important milestone for the company. The company priced its IPO at US$36 per share (AU$49.76), raising about US$1 billion (AU$1.4B), resulting in a total market capitalisation of AU$13.7 billion (US$10B). Freshworks, which was founded in India, has strong roots […]
Black Friday Cyber Monday (BFCM) is the biggest player in the holiday shopping game and Google’s most recent research suggests consumer interest for the peak sales season starts much earlier than retailers may realise. The pandemic has fundamentally changed buyer behaviour over peak sales season, with Google suggesting that global consumer interest in Black Friday […]
Awindependent PR Agency Agent99 has added The Distilled Spirits Council of the US (DISCUS) to its client roster, alongside thought leader and commercial property specialist, Helen Tarrant. DISCUS is a national trade association representing U.S. producers, marketers, and exporters of distilled spirits. The account was won following a competitive pitch earlier this year. DISCUS has […]
Melbourne-based independent creative agency, By All Means, has today released limited edition ‘Locktown’ t-shirts to create a positive, artistic commemoration of their city, while shining a spotlight on the significant impact of lockdown on the mental health of Victorians. After 235 days under strict stay-at-home orders, Melbourne today claims the unenviable crown from Buenos Aires […]
Global marketing agency, Komodo, has announced it will be launching a dedicated TikTok arm to the business in Australia, following a series of key industry hires and new creators signed to their roster. The agency, who partners brands with social influencers across the globe, aims to bring a new dimension to influencer marketing by assisting brands […]
According to Fifth Dimension CEO Lyndall Spooner, whether you like roller coasters or not, we have all been riding ‘Dashed Hopes’ the COVID-19 emotional roller coaster for over 18 months and many of us have turned to online retail therapy to cope. Spooner uses the analogy of an emotional roller coaster to depict consumers’ […]
Underscoring its ongoing commitment to team care and wellbeing, during and beyond the pandemic, Havas Village Australia has introduced be together – a reconnection initiative to enable staff to reconnect with loved ones for longer when domestic and international borders reopen. The initiative, which reflects the Havas core value ‘Better Together’, gives staff from Host/Havas, […]
Global ecommerce and marketplace specialist Pattern has ranked a group of 50 brands selling on Amazon.com.au based on a set of best practice criteria it has developed. Pet brand Zenify topped the ranking in Pattern’s Amazon Australia Benchmarking Report, scoring 82 per cent of the possible marks against a set of criteria designed to measure […]
Fifth Dimension Consulting has announced the expansion of its executive leadership team in response to the organisation’s significant growth over the last 18 months. Lyndall Spooner has moved from the position of managing director to the role of chief executive officer (CEO). As CEO, she will lead Fifth Dimensions’ innovation arm, as well as the […]