The advertising market is seeing some marginal improvement but economic conditions are still tough, according to Nine Entertainment.
The media group says the current financial year started on a positive note, with strong audience and revenue performances across multiple platforms driven by the Paris Olympic Games.
However, the underlying advertising market remains "subdued" particularly for free-to-air television, digital display and print. Nine expects "more positive trends" as the year progresses.
The Total TV market is currently expected to decline in the low-mid single-digits in the current September quarter.
Chief sales officer Michael Stephenson, in a briefing following the release of Nine’s full year results, sees improvement in the second half of the year.
“We had an excellent start to the year,” he said.
“The share results for July … we were a 48% share of revenues in that month.
“Obviously, we will have an excellent result in August as a result of the strength of the revenue generated into the Olympic Games and Paralympic Paralympic Games.
“Whilst the market continues to be challenged, the ad markets are directly correlated to consumer confidence and the economic environment continues to be tough.
“But we are starting to see some marginal improvement.
“If you have a look at the broader marketplace in the in the financial year, the ad market declined by 1.6% but total television declined by 8%.
“I'm confident that, as we see this normalisation of audiences, that any decline in traditional audiences are more than offset by live streaming and on demand audiences.
“Advertising revenue will follow that audience, and that gives us ongoing confidence about improvement into (the second half).”
Nine has been slashing costs to meet the downturn. Cost cutting continues, with $65 million out in the year to June, and $100 million expected to the end of the 2025 financial year
CEO Mike Sneesby said costs are being taken out right across the organisation, with no one area a focus.
“We’re really focused on reshaping our cost base underlying in the business,” he told the briefing.
“Whilst cost is coming out, we are also reinvesting. In the publishing space, outside of the voluntary redundancies that have taken place, we are reinvesting back into the business in areas that are determined to be our focus for strong growth.
“As a leader and a CEO, dealing with the thought of redundancies and the management of costs, particularly as it relates to individuals and their personal circumstances, is absolutely one of the hardest things that you have to do.
“But it's important that this business is strong and sustainable into the future. Otherwise, we aren't able to invest in all important public interest journalism, we aren't able to invest in our people, and we aren't able to grow the business.
“It is a range of tough decisions, but it is the right decisions that we've had to make.”
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