Media group Nine has announced its net profit after tax was down 25 per cent to $279 million in its end of years announced this morning.
In what it described as “challenging” market conditions the company said the advertising market remains subdued, particularly in free-to-air television, digital display and its newspaper arm.
Group revenue was flat at $2.7 billion while earnings before interest, tax, depreciation and amortisation dropped 16 per cent.
The media company said its costs were up one per cent, however, in brighter news its share of TV had risen to 41.8 per cent.
Subscription streaming service Stan continued to be a standout performer for the company. EBITDA lifted 30 per cent, with subscribers growing in both entertainment and sport.
Earnings at real estate listings platform Domain declined 15 per cent as the property markets remained sluggish.
In its newspaper business that includes The Sydney Morning Herald, The Age and Australian Financial Review and digital suffered an eight per cent drop in earnings, reflecting a decline in advertising revenue.
CEO Mike Sneesby said Nine’s investment in new content and sport had strengthened its competitive position across its platforms.
Nine will pay a fully franked final dividend of five cents per share, down from seven cents last year.
Sneesby said: “Every month, across Nine’s television, publishing and audio assets as well as Stan and Domain, we reach almost 20m people.
“It is this broad reach which gives Nine its unique position – our ability to distribute content to the broadest possible audience; to monetise that content in multiple ways and to use our extensive first party data to ensure optimisation of audience and revenue.
“Our Total Television business has had an extraordinary year, achieving record revenue share results as our content strategy and investment continues to further strengthen our relative position.
“Our high quality talk radio assets have also grown share, whilst expediting the expansion into digital, with 115 per cent digital revenue growth reported for the year.
“Subscription and licensing revenues at Nine’s wholly owned businesses, Stan and Publishing, together grew by around nine per cent, to 28 per cent of total revenue ex Domain, with price increases successfully executed reflecting the strong content and engagement of the group’s growing subscriber bases,” Sneesby said.
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