Nine Entertainment posted a 5.3% lift in headline profit after tax to $114 million, within analyst expectations, as the media company continues its repositioning for a digital future.
Revenue was up 67% to $1.18 billion. Statutory profit was $101.9 million. The company declared a fully franked dividend of 5 cents.
The company says overall advertising market conditions across most categories have remained softer-than-anticipated
for the start of 2020.
The market reacted favourably. Nine shares were up more than 7% to $1.73 in morning trade on the ASX.
CEO Hugh Marks says the result is a testament to the work over the last four years to reposition Nine for a digital future.
"With strong growth in our digital businesses helping to offset some of the cyclical headwinds faced by our traditional media assets," he says.
"We have now clearly established Nine as the leading domestic player in the digital video market with both 9Now and Stan recording very strong growth in the period. Growth that we expect to continue into H2.
"Nine is in a unique, and incredibly exciting position. We own platforms across linear television, digital, print and radio – leading assets, and all of which are evolving towards digital distribution. Almost 40% of our earnings are now sourced from growing digital platforms."
Nine also plans to cut up to $100 million in annualised costs from its television business over the next three years.
Marks says these costs "will not inhibit our ability to continue to invest in the growth opportunities" around premium revenue and digital video.
BROADCAST
(Nine Network, 9Now, Nine Radio). Revenue fell 6% to $564 million. Nine: "Reflective of a very difficult overall advertising market, the Metro FTA ad market declined by 7%."
DIGITAL AND PUBLISHING
(Metro Media, Pedestrian, CarAdvice and nine.com.au). Revenue down 3% to $288 million. "Metro Media reported flat revenue in a challenging ad market."
STAN
Revenue up 79% to $116.6 million. Subscribers 1.8 million. More coverage HERE
The half year to December:
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