Nine entertainment groups (ASX:NEC) has released a trading update ahead of its 10am annual general meeting today. President Catherine West and interim CEO Matthew Stanton detailed the company’s efforts to strengthen its integrated media portfolio and maintain audience engagement despite economic pressures and a changing advertising landscape.
Nine has grown audiences across all its platforms. Live audiences for free-to-air and streaming services have seen growth, reversing years of audience fragmentation. Notably, Stan has surpassed two million paying subscribers, supported by exclusive content and the successful broadcast of the Paris Olympic and Paralympic Games. Meanwhile, digital subscriptions to major publications such as The Sydney Morning Herald and The Age have pushed total subscribers to over 500,000.
The company reported FY24 revenue of $2.6 billion, with EBITDA of $517 million, down 12% from FY23 due to weakness in the TV advertising market. Net profit after tax (NPAT) stood at $190 million, reflecting pressures within the sector. Nine’s cash flows and balance sheet remained strong, with leverage at 1.2x as of June 30, reflecting the impact of pre-event payments for the Olympic Games. Additionally, subscription and licensing revenues contributed more than 30% to total owned revenues, showing 5% year-over-year growth. Earnings per share (EPS) for the year were 10.5 cents.
A solid balance sheet allowed the company to continue its share buyback program, acquiring approximately 120 million shares. The Board declared a fully franked final dividend of 4.5 cents per share, bringing the total dividend for the year to 8.5 cents, equating to a payout ratio of 73%.
Addressing organizational culture, West acknowledged the findings of an independent review by Intersection, which highlighted issues of workplace misconduct. Both West and Stanton have pledged to bring about meaningful change and accountability, stressing that inappropriate behavior has no place at Nine.
Stanton outlined Nine’s use of advanced AI tools to streamline operations and improve content creation, including the launch of 9Express, which repurposes broadcast news into written articles. He reaffirmed the company’s commitment to leveraging its comprehensive media assets and broad data capabilities to drive growth.