Nine expects to grow its total television revenue share this year, off the back of the growth of its metro free-to-air audiences on an average 24-hour, 7-day-a-week basis this year – both in total people and among younger demographics.
“This markedly improved audience trend gives us confidence that the Group is well-positioned when economic conditions and advertising markets begin to recover,” Nine CEO Mike Sneesby said in his introductory comments at the Macquarie conference.
Sneesby said Nine is also reporting strong performances from its digital subscription businesses – Stan and its metro mastheads. Subscription revenues for Nine are expected to account for around 30% of its Group revenues, excluding Domain, in FY24.
“In the first half, our subscription revenues grew by 8%, and we have seen ongoing momentum both in terms of pricing (with price increases this half at both Stan and the AFR.com.au) and subscriptions into the second half.
“We remain focussed on the ARPU [average revenue per user] opportunity, a function of the premium content that we create, and which we believe has some way to run.”
Nine has started the 2024 calendar year as the clear ratings leader, Sneesby said, across all key demographics, finishing the March quarter with a 45.2% share.
“Nine has also recorded real audience growth across its core Metro markets on its primary channel (2am-2am), both on a financial year-to-date and calendar year 2024 basis, underpinning confidence in the cycle as advertising markets improve.
“Reflecting our strong ratings performance, Nine achieved a 43.3% share of FTA revenues and a 55.1% share of BVOD revenue 2 in the March quarter. With ratings momentum continuing, and coupled with the run-in to the Paris Olympics and Paralympics in Q1 FY25, Nine expects to grow total television revenue share in the current half on H2 FY23.
“9Now continues its growth trajectory, with low double-digit growth in Q3 with positive momentum expected to continue through Q4.”
Sneesby added that Nine’s publishing business continues to benefit from the growth of digital audiences, with digital subscription revenue growth expected to be in the low double digits, but admitted it will be challenging to maintain.
“The advertising market remains challenging, particularly digital display, mainly reflected in the performance of Nine’s ‘other’ Publishing revenues (non-metro mastheads).”