Media profits: Nine Entertainment Co reports revenue and profit lift

Cameron Williams

‘The strong operating performance from last year continued across our entire suite of assets.’

Nine Entertainment Co has reported the company’s preliminary final results for the 2018 financial year (FY18). Revenue was $1,318m (+6%), group EBITDA was $257m (+25%) and net profit after tax lifted to $157m (+27%).

Highlights for the period include:

• Improved ratings performance – 25-54s network share of 38.2%1
• #1 revenue share for the 12 months of 38.6%, up 2.9 points
• More than doubling of profit at refocused digital business (ex Bing)
• 90%+ growth in long-form streams resulting in 90% growth in revenue at 9Now
• 1.1m+ active subscribers at Stan currently, growth of 40% over the 12 months

Hugh Marks, chief executive officer of Nine Entertainment Co, said: “The strong operating performance from last year continued across our entire suite of assets. Positive FTA TV ratings momentum combined with our focus on the 25-54 demographics is translating to improving revenue share.

“In digital, 9Now is experiencing strong revenue growth and our digital publishing business has reported accelerating growth in premium revenues in line with our strategy. Stan has raced through the milestone of 1m subscribers and remains focused on the build of a longer-term competitive and profitable local SVOD player.

“The proposed merger with Fairfax will enhance our ability to continue to grow our business for the benefit of all shareholders. The increasing scale of the merged group will expand both our advertising reach and ability to offer innovative solutions, backed by data and Nine’s Galaxy platform. The combined reach of the group’s expanded media assets will enable an acceleration in the growth of the Domain business, while Nine’s ability to invest in and expand what will be Australia’s largest news platform, across television, radio, digital and print, is also incredibly exciting.”

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