InDaily InDaily

Support independent Journalism Contribute Subscribe
Support independent journalism

Nine bounces back, but warns of challenges ahead


Nine Entertainment has bounced back from last year’s huge loss with a full-year profit of $324.8 million, but warned that the outlook for the free-to-air TV ad market remains challenging.

Comments Print article

Revenue for the year to June 30 was down 6 per cent to $1.29 billion and underlying net profit declined 7.1 per cent to $120.3 million, but the bottom line was buoyed by the $640 million sale of the Nine Live ticketing and events business.

“The ratings and revenue performance of our core free-to-air business was disappointing in the first six months of calendar 2016, due to a combination of the challenging ad market and poor programming outcomes,” chief executive Hugh Marks said.

“However, we are taking positive steps to regain momentum in our ratings and revenue, with a well-advanced content plan for 2017 incorporating 50 per cent more premium local television content.”

Nine warned that the metropolitan free-to-air ad market was again expected to be “flat to down marginally” over 2016/17, with regional markets performing even more poorly.

The broadcaster hopes its renegotiated affiliate agreement with Southern Cross can offset some of that regional underperformance.

Nine took a $46 million charge related to its contract to purchase US drama from Warner Bros, which has proved to be unprofitable, and will make another $86 million provision in the first half of 2016/17 after reaching an agreement to exit the deal.

Nine, which last year lost $592.1 million largely due to a huge writedown on the value of its free-to-air TV licence, used some of the proceeds of the Nine Live sale to cut its debt by $346.7 million to $177.6 million.


We value local independent journalism. We hope you do too.

InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to become an InDaily supporter.

Powered by PressPatron


Show comments Hide comments
Will my comment be published? Read the guidelines.

More Business stories

Loading next article