Nine Entertainment has built a bigger share of television advertising but still expects to end the 2023 financial year with lower revenue than last year.
In a presentation to a Macquarie Bank conference, Nine CEO Mike Sneesby says total television advertising revenue for the financial year to the end of June is expected to be lower by a single digital percentage compared to 2022.
He described this as a "strong outcome" against the backdrop of a weak economy.
"Nine continues to expect to grow its revenue share of all key advertising platforms," Sneesby said.
"This growth reflects Nine’s commitment to delivering the best content to our audiences, with targeted and strategic investments continuing to pay off.
"Notwithstanding, the advertising market is expected to remain challenging through Q4 of FY23."
Nine in February reported a 5% rise in revenue to $1.4 billion for the half year to December but warned then of television advertising slowing. Net profit after tax fell 16% to a $190 million.
Competitor Seven West Media is preparing to cut costs further in a deteriorating advertising market.
However, Nine believes it will continue to grow total television revenue share in the current half year to June.
In the March quarter, Nine achieved a 45% share of free-to-air revenues and a 56% share of BVOD.
The metro free-to-air market fell by around 15% in the Martch quarter comapred to the same three months last year.
And Nine expects a similar decline expected in the June quarter.
"The market remains short, with limited visibility," Nine told investors at the Macquarie event.
"The absence of key events, particularly the 2022 Federal Election, accounted for an estimated 6% points of this decline.
"Nine clearly outperformed the market, gaining more than 2.5 percentage points of share across the quarter, on previous corresponding quarter."
Based on current market conditions, Nine is expecting full year EBITDA to be $590 million to $600 million.
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