“A Challenging Year”: Nine Records $575M Loss, Yet Audience Grows

“A Challenging Year”: Nine Records $575M Loss, Yet Audience Grows

Nine Entertainment Co. has released its FY20 results for the 12 months to June 2020, reporting revenue of $2.2b and a net loss of $575m.

According to Nine, the loss related to a post-tax Specific Item cost of $665m, largely relating to impairment of goodwill.

Nine also reported an EBITDA of $355m, down 16 per cent on FY19. On the same basis, net profit after tax and minority interests was $160m, down 19 per cent.

Nine CEO Hugh Mark said there was no doubt 2020 was “a challenging year” yet the media company was protected from the worst of the pandemic.

“The results of the strategic growth decisions we have made over the past 5 years, have played out at scale across the year and, as a result, sheltered us from the worst of the market impact of COVID-19.

“Our focus on the growth platforms in the market – primarily digitally based, and video-centric – has paid off.

“In the year to June 2020, the combined contribution from Stan and 9Now, the digital components of Domain and Publishing grew by 40%, to around 48% of our total EBITDA.

“Digital video consumption and subscriber revenue in particular, have grown significantly across the period, while digital advertising markets have improved more quickly as we trade through the worst of the COVID crisis.

Marks said Nine was quick to respond when the markets turned amid COVID-19.

“As advertising markets across all sectors came under pressure, we focused on significant short and long term cost initiatives across all of our businesses, successfully removing around $225m of cash costs in CY20, and setting in place the reduction of approximately $230m of long-term P & L cost from our business.

“As a result, the current market conditions have only given greater cause to continue to evolve the positioning of our business. Particularly the migration to digital – clearly evident across both our publishing and video assets.”

Marks said Nine will continue to drive its digital performance while maximising its traditional media assets.

“We are confident that this current period of adversity will only make us stronger,” he said.

“We believe we have the right strategy, the right assets and the right people, as well as a strong balance sheet, to ensure Nine’s position at the forefront of the media sector for many years to come.”

In a BVOD market, which grew by 31% for the year to $162m, 9Now held its share of 50 per cent, for revenue growth of 32 per cent. Growth in the underlying market slowed in the fourth quarter to 15 per cent, reflecting the broader advertising market momentum.

Live and VOD minutes increased by 49 per cent across the year on pcp, with total streams up by 44 per cent.

Overall, 9Now increased its EBITDA contribution by 36 per cent or $13m to $49m.

The acquisition of the minorities in Nine Radio (previously Macquarie Radio) was completed in November. The radio market generally had a difficult 12 months – the metro radio ad market declined 20 per cent across the year, and 30 per cent in the second half.

Across the two halves, Nine’s revenues declined by 16 per cent and 29 per cent respectively, given specific operational issues during the year. Full year costs declined by 8 per cent or $8m, reflecting one half of merger synergies, supplemented by broader cost out initiatives. Nine Radio reported EBITDA of $10m, or $6m.

 




Please login with linkedin to comment

Hugh Marks Nine

Latest News

Nine Appoints Jo Barton As Director Of Sales – Sydney
  • Media

Nine Appoints Jo Barton As Director Of Sales – Sydney

Nine has announced that highly regarded sales leader Jo Barton has been appointed director of sales – Sydney, further strengthening the Nine sales team as it focuses on helping partners reach audiences across its Total Television, Total Audio and Total Publishing platforms. Currently group business director with complete responsibility for Nine’s largest agency group, Jo […]

Susie O’Neill Swaps The Pool Deck For DJ Decks For Nova
  • Advertising

Susie O’Neill Swaps The Pool Deck For DJ Decks For Nova

Last night Nova 106.9’s Brisbane Breakfast Announcer and Australian Olympic swimmer Susie O’Neill swapped the pool deck for DJ decks, as her alter ego ‘DJ Lazy Susan’ headlined one of Brisbane’s biggest and hottest shows of 2024: ‘THE BUTTERFLY & BANGERS WORLD TOUR’. The eight-time Olympic medallist took to the decks at Brisbane’s biggest and […]

Vistar Media & ChinaDOOH Bring Programmatic DOOH To Mainland China
  • Advertising

Vistar Media & ChinaDOOH Bring Programmatic DOOH To Mainland China

Vistar Media has announced a strategic partnership with ChinaDOOH to expand Vistar’s programmatic advertising capabilities into Mainland China. Through this expansion effort, Vistar and ChinaDOOH will enable programmatic digital out-of-home (DOOH) advertising for media owners – unlocking new demand from buyers and partners across Vistar’s extensive global marketplace. In 2021, Vistar and ChinaDOOH forged a […]

Australian Agency Signs APAC Deal With Data-Driven Platform To Remove Bias In The Sports & Entertainment Decision-Making Process
  • Marketing

Australian Agency Signs APAC Deal With Data-Driven Platform To Remove Bias In The Sports & Entertainment Decision-Making Process

Super-Sub, an independent Australian sports and culture business has partnered with UK sponsorship insights platform, Luscid to empower brands to make smarter, more impactful partnership decisions, by addressing the lack of data in the Australian sports and entertainment rights market. Australia has one of the most densely populated commercial rights markets per capita globally, with […]

Adland Leaders Launch Pembleton: A Clubhouse For Creative Ideas
  • Advertising

Adland Leaders Launch Pembleton: A Clubhouse For Creative Ideas

Matilda Hobba, Simon Bagnasco, Alex Speakman, and Mac Wright have launched Pembleton, a “clubhouse for creative ideas.” The four partners combine their strategic, creative, and project management experience with leadership roles at independent agencies like Taboo and multinational icons like Saatchi & Saatchi. They have helped create some of the most effective and awarded work […]

Dwyane Wade “Toasts” To The Finals In New 2024 NBA Finals Campaign
  • Campaigns

Dwyane Wade “Toasts” To The Finals In New 2024 NBA Finals Campaign

NBA Legend and three-time NBA Champion Dwyane Wade gathers a cast of former champions and famous NBA fans to celebrate the pinnacle of the NBA season with a toast “to the Finals” in the 2024 NBA Finals campaign “The Toast”. Ray Allen, Mike Breen, Ken Jeong, Magic Johnson, Jimmy Kimmel, Isiah Thomas, Queen Latifah and […]

Year13 Launches Virtual Work Experience Program
  • Marketing

Year13 Launches Virtual Work Experience Program

Thousands of school students have engaged with Youth Engagement Platform Year13’s recently launched Virtual Work Experience during National Careers Week, May 13-19, 2024. Year13’s Virtual Work Experience platform seeks to solve the problem of school students struggling to find placements by moving employer branded Work Experiences online for students to participate in. Year13’s After The […]

Taskmaster’s Tom Cashman Reveals Why He Is More Relaxed This Season
  • TV Ratings

Taskmaster’s Tom Cashman Reveals Why He Is More Relaxed This Season

Network 10’s hit improv comedy show Taskmaster Australia returned last night for a second season. Joining Tom Gleeson and his sidekick Tom Cashman were a slew of new comedic talent including Josh Thomas, Jenny Tian, Lloyd Langford, Anne Edmonds and Wil Anderson. The unscripted comedy show in which comedians are tasked with a random task […]

QMS Put Brands Up In Lights For Vivid Sydney 2024
  • Advertising

QMS Put Brands Up In Lights For Vivid Sydney 2024

As Vivid Sydney 2024 kicks off, QMS is embracing the celebration of creativity, innovation and technology with a powerful collection of advertisers for the annual festival of lights. QMS’ world-leading City of Sydney digital street furniture network will proudly showcase campaigns from brands including Kia Australia, Visit Victoria, Foxtel Hubbl, Kayo, Universal Pictures, Chemist Warehouse, […]

A Current Affair EP Fiona Dear Appointed Nine Director Of News & Current Affairs
  • Media

A Current Affair EP Fiona Dear Appointed Nine Director Of News & Current Affairs

Nine has announced the appointment of Fiona Dear, currently EP of A Current Affair, as the new director of news and current affairs. This appointment comes at a time of rapid change in our news division as Nine continues to rise to the challenges of an ever faster, more dense media environment and an audience […]

Cashrewards: A Decade Strong!
  • Partner Content

Cashrewards: A Decade Strong!

This month, Cashrewards celebrates its 10th birthday. In this op-ed, Anthony Seymour-Walsh, CEO, reflects on the journey of this inspiring Aussie business, which has evolved from humble beginnings to become Australia’s leading cashback ecosystem and a key strategic partner for clients.   Lead image: Anthony Seymour-Walsh – CEO, Cashrewards.   I am excited about the next chapter as […]

Partner Content

by B&T Magazine

B&T Magazine
Gold Artifacts Give Clues To Apple Music’s 100 Best Albums
  • Campaigns

Gold Artifacts Give Clues To Apple Music’s 100 Best Albums

Apple Music has unveiled its complete 100 Best Albums list, celebrating the greatest records ever made. Crafted by Apple Music’s team of experts and artists the lists includes Maren Morris, Pharrell Williams, J Balvin, Charli XCX, Mark Hoppus, and serves as a love letter to the records that have shaped, inspired, and fundamentally changed music. […]

Chook & HOYTS Celebrate Webby Honouree Recognition At The Australian Web Awards
  • Advertising

Chook & HOYTS Celebrate Webby Honouree Recognition At The Australian Web Awards

Chook, a strategy, design and development agency that specialises in bespoke digital experiences, has received international acclaim at the 28th Annual Webby Awards and clinched the Best in Show in the SEO effectiveness category at the Australian Web Awards for the HOYTS’ Australia and New Zealand websites. Lead image: Adam Dipper and James Hartcher, Chook […]

Salesforce’s Bobby Jania: AI Has Flipped Marketing Campaigns On Their Head
  • Technology

Salesforce’s Bobby Jania: AI Has Flipped Marketing Campaigns On Their Head

Bobby Jania, CMO of Salesforce’s Marketing Cloud has said that AI has flipped the traditional marketing campaign on its head, with customers — instead of brands — being in the driving seat. Speaking to a panel of journalists at Salesforce’s Connections event in Chicago, Jania told B&T that the attention economy and AI will force […]

by B&T Magazine

B&T Magazine
Network 10 Axes Gladiators
  • Media

Network 10 Axes Gladiators

the network has dropped its third tentpole show in recent months after cancelling The Bachelor and The Masked Singer. First airing in January this year and hosted by Beau Ryan and Liz Ellis, the reboot features contenders from all walks of life in the ultimate test of speed, strength, stamina, agility and power. It is […]