Nine Entertainment Group (ASX:NEC) has released a trading update ahead of its 10am Annual General Meeting today. Chair 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 shifting advertising landscape.
Nine has expanded audiences across its platforms. Live audiences for free-to-air and streaming services recorded growth, reversing years of audience fragmentation. Notably, Stan surpassed two million paying subscribers, bolstered by exclusive content and the successful broadcast of the Paris Olympic and Paralympic Games. Meanwhile, digital subscriptions at major publications like The Sydney Morning Herald and The Age pushed total subscribers past 500,000.
The company reported FY24 revenues of $2.6bn, with an EBITDA of $517m, down 12% from FY23 due to a weak television advertising market. Net profit after tax (NPAT) stood at $190m, reflecting the pressures within the sector. Nine's cash flows and balance sheet remained robust, with leverage at 1.2x by 30 June, reflecting the impact of pre-event payments for the Olympic Games. Additionally, subscription and licensing revenues contributed more than 30% of the total wholly-owned revenue, showing 5% growth year-on-year. Earnings per share (EPS) for the year were 10.5 cents.
A robust balance sheet allowed the continuation of its share buy-back 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 organisational culture, West acknowledged findings from an independent review by Intersection, which pointed out issues of workplace misconduct. Both West and Stanton committed to meaningful changes and accountability, emphasising that inappropriate behaviour has no place at Nine.
Stanton outlined Nine's use of advanced AI tools to streamline operations and enhance 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 extensive data capabilities to foster growth.
