Nine Posts $237m Half-Year Loss Due To Big TV Writedown & Falling Revenue
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.
The group’s negative overall results come after Seven West Media and Ten both revealed a plunge in profits during the first half of 2016-17.
Please login with linkedin to comment
#HappyGiving Advertising Standards Bureau brand expression WFI Smart50 AwardsLatest News
Enjoy A Hahn Solo… And May The Fourth Be With You
This May the fourth Hahn will celebrate alongside Star Wars fans rewarding their passion via a giant Hahn travelling solo through the sky. It’s the one day of the year when all sci-fi fans rejoice and giggle to themselves and Hahn in partnership with Thinkerbell, UM and Affinity is celebrating with an out of this […]
DMARGE Founder Unveils Creator-Led Social Media Agency Feedstar
New creator-led social media agency Feedstar to be aimed directly at Gen Zs. Well, they'd hardly want print, would they?
TV Ratings (02/05/2024): A total of 1,753,000 Aussies Witness Port Adelaide’s Defeat
Seven's AFL numbers almost double that of the NRL last night. The NRL still easily winning for ruptured ACLs.
Hotglue Cashes In With La Trobe Financial Digital Media Account
Hotglue staffers learning their cashflows from their collaterals today after nabbing La Trobe Financial's digital media.
M&C Saatchi’s Sydney Creative Lead Exits
B&T's stopping short of calling it a revolving door at M&C at the present, but there's definitely heat on the hinges.
Taylor Swift’s Music Re-Enters TikTok As Universal Pens Landmark Deal
Yes, B&T may have spent 152 hours failing to get Taylor Swift tickets, but, as you'll read here, it's all behind us now.
HAVAS Red launches inaugural Influencer White Paper
Havas Red has debuted its first influencer white paper. Unless you print it out in colour, of course.
Two Sides Global Campaign Reports Increasing Greenwashing As Organisations Focus On Sustainability
New report confirms greenwashing's on the rise. Apparently Mars' 'work, rest & play' claims also under investigation.
Aruga Launches New HQ & Changed Ownership Structure
PR agency Aruga proves Brisbane is 'so hot right now'. So hot in fact, Adelaide's had to go on anti-anxiety meds.
Delicious & American Express Partner To Launch Month Out 2024 In Sydney
Cost of living got you eating noodles prepared in the two-minute style? Why not live vicariously through this.
Aussie Ad Market Continues Decline In March
The belt-tightening in adland shows signs of a turnaround soon. Bar the belt-loosening at the all-you-can-eat buffet.
VMA Focuses On Skills And Training For Members
If there was a post-COVID hangover (bar the anti-vax ranters) it was the rise in skills shortages. Here's another one.
Nearly 90% Of Consumers Want Transparency About AI Images, Finds Getty Images Report
Study finds consumers want transparency around AI images. Couldn't care less about photoshopped magazine covers.
The National Breast Cancer Foundation Partners With VML To Boost Funds
Anyone else feel we've exhausted the office morning tea for cancer? B&T proposes the office moonshine still instead.
Perry ‘Pez’ Lazaris Named New National Hit Network Announcer
Why is it mandatory for the media to only publish the nicknames of people in radio & underworld crime figures?
Before Adland: Garry Dawson’s Journey From Teacher To Marketer
Here, the Hopeful Monsters marketer talks his shift from the classroom to the room wherever marketers congregate.
Scott Cam Urges Tradies To Prioritise Sun Protection
The Block host promoting sun protection to tradies. Also, don't try getting into the RSL after 6pm wearing high viz.
PubMatic Study: Advertising On Retail Media Is 50% More Effective Than Social Media
New study finds retail media 50% more effective than social. B&T says two-for-one Tim Tams trumps the lot.
From MOWING to life GROWING: Jim Penman launches ‘Life Coaching’ services
Can't decide on getting the hedges trimmed or finding a deeper meaning to life? You're in luck with this new venture.
Budweiser Brazil Turns Songs That Name Drop The Iconic Brand Into Spotify Ads
It's strange that Budweiser never found a market among beer-swilling Aussies. Then again, neither did the fluffy duck.
Effie Worldwide Strengthens Board With 6 New Members
B&T hopes everyone's wearing their Maseur sandals at the Effies, as it's standing room only at the next board meeting.
Special Enlist A Penguin Named Nigel In Latest Energy Campaign For Contact
Special unveils Nigel the penguin in work for energy provider Contact. Apparently Percy the peacock was booked.
Anya Taylor-Joy, Chris Hemsworth & George Miller Ignite Sydney For Epic Mad Max Launch
The Mad Max film franchise is Australia's cinematic gift to the world. That & Chris Hemsworth's near perfect cheekbones.
IAS Launches First-To-Market Integration With Roblox To Provide 3D Immersive Measurement
Always thought you could do with better 3D immersive measurement? Happy days are ahead here.
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.