Nine’s Revenues Take A Hit As TV, Radio & Domain Ad Spends Weigh On Business

Nine Entertainment has unveiled a revenue drop of 1.7 per cent in its half-yearly results announced this morning.
Revenue for the half year to December was $1.19 billion while group earnings before interest, tax, depreciation and amoritisation (EBITDA) was $250.8 million on a reported basis. Net profit after tax fell by 18 per cent to $114.3 million.
Key takeaways included:
• Strong growth from digital video businesses
• $35 million EBITDA improvement at Stan, with subscribers exceeding 1.8m million
• 65 per cent growth in EBITDA at 9Now, with market leading BVOD share of ~50 per cent
• Further investment in 9Now to accelerate growth into the broader digital video market
• Result was heavily impacted by challenging cycles
• Broad based ad market weakness including a seven per cent decline in Metro FTA revenues
• Housing market softness impacting Domain’s residential listing volumes
• Synergies of $9 million identified following completion of the Macquarie Media acquisition
• Nine expects FY20 EBITDA at a similar level to FY19
The company has previously told the market at its AGM last year that it expected “low single digit growth”.
The results were impacted by a five per cent drop in Nine’s TV and radio ad revenues, which were $630 million to December 2019. Its metro publishing business – that includes The Sydney Morning Herald and The Age – fell by three per cent to post revenues of $288 million.
On a more positive note, Nine’s SVOD service Stan posted impressive revenue growth to December, up a whopping 79 per cent.
Nine’s results are in line with general market sentiments that have been hampered by poor ad spending post May’s federal election.
Last week, Seven posted its results that showed the broadcaster lost $67 million in its half-yearly results to December 2019. The announcement sent Seven’s share price crashing to just 21 cents late last week.
As of this morning, Nine’s shares were trading at $1.61, but were as high as $2 as of mid-January this year.
Commenting on today’s numbers, Nine CEO Hugh Marks said: “This result is a testament to the work we have done over the last four years to reposition Nine for a digital future. With strong growth in our digital businesses helping to offset some of the cyclical headwinds faced by our traditional media assets.
“We have now clearly established Nine as the leading domestic player in the digital video market with both 9Now and Stan recording very strong growth in the period. Growth that we expect to continue into H2. We have successfully unified our first party database across all of our owned and controlled businesses, meaning we are in a position to offer our partners the benefits of more targeted advertising across the Nine suite of assets.
“We have invested in technology through 9Galaxy which will enable our inventory to be traded seamlessly, and in a premium content mix that works across linear and on-demand television. Positioning us to compete more effectively with the global technology companies for revenue.
“Recognising this company-wide evolution, we believe there is significant potential to refocus the cost structure of our FTA business, targeting the removal of up to $100 million in annualised costs over the next three years – costs that will not inhibit our ability to continue to invest in the growth opportunities around premium revenue and digital video, as we have done successfully over the past three years.
“Nine is in a unique, and incredibly exciting position. We own platforms across linear television, digital, print and radio – leading assets, and all of which are evolving towards digital distribution. Almost 40 per cent of our earnings are now sourced from growing digital platforms. Together with data and technology, we have the ability to distribute messages to mass audiences as well as to small but valuable, addressable audiences. We have the systems to ensure seamless and efficient delivery for advertisers and we have the balance sheet to invest in the content that works for Australians.”
Latest News

Triple J’s Hottest 100: Only A Few Hundred Votes Separate First And Second Place!
Hottest 100 top songs of the year are neck and neck. B&T editor still working out who G Flip and Mallrat are.

Some Funny Bugger Has Stolen Pauline Hanson’s Website And Redirected It To The Refugee Council
It's a safe bet to assume "I don't like it" was uttered a few times up in Queensland this morning.

LinkedIn Launches Jobs Bootcamp To Make “2021 The Year Of Your Career”
B&T's hoping Uber Eats or Diageo will be the next company to launch an all-day Bootcamp.

WhatsApp Takes Out Full-Page Newspaper Ad To Address Privacy Concerns
After spending the last decade sending newspapers broke, Zuckerberg finally decides to throw them a bone with these ads.

Hailey Bieber, Kendall Jenner & Precious Lee Front Latest Versace Campaign
B&T's editor is more of a Lowes than Versace man, but he has been known to sport a colourful kaftan from time to time.

Greg ‘Blewey’ Blewett To Join Bernie And Jars For The Drive Home On Adelaide’s 104.7 Triple M
Adelaide's prodigal son is returning to the airwaves. Greg Blewett that is, not Guy Sebastian.

Lotame Extends New Cookieless ID Solution With Magnite, Sovrn, Eyeota And Advance Local Integrations
Dissapointingly, Lotame not rolling up sleeves and baking double choc cookies, as featured image would suggest.

Landor Australia Rebrands Women’s Tennis Association
Women's Tennis Association undergoes first rebrand in a decade, and not one tennis racket was thrown in a tantrum.

Collingwood Women’s Football Team Partners With AIA Australia
Collingwood women’s football team partners With AIA Australia. B&T hears it was a beautiful ceremony.

“Focus On Paying For Original Content”: Treasurer Slams Google’s Move To Block News Stories
Not one but two stories about Aussie politicians today. No, you're not reading The Guardian.

Integral Ad Science Acquires Amino Payments
Amino Payments joins the IAS family. Hopefully they don't get the middle child treatment.

Volkswagen Unveils Electric SUV, The ID.4, In Stunning Spot ‘The Wheel’ Via Johannes Leonardo
Zoetropes, a praxinoscope, early projectors, and a phenakistoscope have all been used to channel what is considered a monumental moment for carmaker Volkswagen in a new short by Johannes Leonardo. Directed by Sam Brown, the 90-second film ‘The Wheel’ uses some of the oldest devices of motion in film—the Zoetrope (praxinoscope, early projectors, and phenakistoscope)—as […]

ENGINE Group Australia Launches Media Agency
B&T will be extremely disappointed if the agency isn't asking its clients to "Rev the ENGINE" with this move.

DoubleVerify Earns MRC Accreditation For CTV Measurement
DoubleVerify earns this new accreditation which sadly does not come with a gold star or a giant sticker.

Rob Reilly Appointed As WPP Global Chief Creative Officer
Rob Reilly wins the race of WPP global CCO. Although not without a slight Achilles tendon tear, B&T understands.

R/GA Lands Uber Global Social Account As Agency Of Record
R/GA team excited about instantly scoring a 5 star Uber rating following this global win.

Four Celebrities Required Medical Attention Following Crazy Challenge On 10’s I’m A Celeb
I'm A Celeb contestants required medical attention following ice challenge. The water kind, not the hard drug kind.

M&C Saatchi Sport And Entertainment Nabs Richie Butterworth As Head Of Sponsorship
Butterworth begins new role with M&C Saatchi, where brick walls are soon to be painted minimalist white.

“Intentional And By Design”: How Val Morgan Digital Is Positioning Itself As An Advertiser’s Playground
Val Morgan is cementing itself as an advertiser's playground just minus the booze, cocaine and arancini balls.

TikTok Strengthens Protections For Under-18 Users
TikTok users over the age of 30 continue to be protected too, owing to the fact they don't really know how to use it.

Rebel Kitchen Calls Trump An Ass In Hidden Message On Outdoor Ads
As far as names Donald Trump has been called in recent days, 'ass' certainly ranks at the lower end.

Google Australia Set To Bury News Articles For Some Ahead Of News Media Bargaining Code
Google set to start burying certain articles. We're unsure if they will be able to find a big enough shovel.

The Athlete’s Foot Launches 2021 Back To School Campaign
When it comes to the downsides of being a parent, buying $150 shoes that are outgrown within months is right up there.

Brad Pitt Fronts Miraval Rosé’s First-Ever Ad Campaign With A Repurposed Image
If ever there was someone with no need for retouching it would have to be Brad Pitt.

Dentsu’s iProspect To Absorb Vizeum Globally
Dentsu continues to streamline operations with this move. It was either this merger or the coffee machine, staff told.

Nine & Stan Eye Off NBL Rights
On an unrelated note, Hugh Marks spotted practising his alley-oops and free throws at the North Sydney basketball courts.

Creepy Or Convenient?
If B&T's editor could think of a three-word headline for every story he'd be retired by now.

Cannes Confirms Plans To Go Ahead In 2021
Want to sip rosé on the French Riviera while keeping a respectable 1.5m distance from adland's best? Good news today.

OMA Appoints Ipsos To Rebuild MOVE For The Digital Age
Upset at B&T's lately acronym-lite newsletter? This article makes up for it in spades.

Is Moving The Australian F1 Grand Prix to November The Best News The Event (And Its Sponsors) Has Ever Had?
Is the F1 move the best thing to happen to the events industry EVER? It's either that or the invention of the slider.