Nine Entertainment shares drop on profit slide
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More news: Nine Entertainment shares fell 6.52% to $1.72 by 3:28pm AEDT, after the company posted a 40% profit slide.
The media company’s statutory net profit fell to $113.8 million and it cut its dividend due to weakness in television advertising.
Nine Entertainment posts 40% profit slide and cuts dividend
The news: Nine Entertainment Co has reported a 40% decline in statutory net profit and has cut its dividend, as weakness in the television advertising continues to trouble the Australian media business.
The numbers: Over the six months to December 2023, statutory net profit fell 40% to $113.8 million compared to the prior corresponding period. The company posted a net profit after tax and minorities of $133.7 million, down 27% from $183.1 million.
Revenue for the half was $1.37 billion, down 2% on $1.4 billion and group EBITDA was $316 million, down 15% on $370 million. Statutory net profit fell 40% to $113.8 million.
The media company also cut its interim dividend to 4 cents per share, down from 6 cents per share.
The context: The result comes in the throes of ongoing weakness in the television advertising market, which declined 10.4% to $3.39 billion through the 2023 calendar year, according to ThinkTV.
What they said: “Notwithstanding the impact of challenging economic conditions on the broader advertising market, the breadth of Nine’s business underpinned some key operational highlights across the half,” said Nine chief executive, Mike Sneesby.
“I am particularly pleased with the performance of our subscription businesses — with subscription and licensing revenues at Nine’s wholly owned businesses, Stan and publishing, together growing by around 8%, to more than 30% of group revenue [excluding] Domain.”
The source: ASX announcement
