Nine's revenue and earnings has fallen slightly higher rate than the metro free-to-air TV advertising market contracted in a challenging first half of FY17.
The group reported a 5% drop in revenue to $659.2 million and 6% decline in earnings (EBITDA) to $101.4 million compared to the same period in FY16. Nine's CEO Hugh Marks described it as a solid result given Nine's poor performance in the second half of FY16 and a metropolitan TV advertising market that contracted by 4.5%.
Nine reported an underlying profit of $75 million, down 4%, which benefitted from a 4% reduction in group costs.
After adjustments, Nine booked a $236.9 million net loss, largely due to a $260 million writedown to bring the company's book value in line with a share price that is 40% lower than it was last April. A further charge of $84.9 million was booked to close out of Warners contract.
Nine's results were negatively impacted by the Olympic Games but buoyed by strong ratings after the games, which saw Nine gain a 37.8% market share of its key 25-54 demo and the top market shares for 16-39 and grocery buyers.
Nine's digital earnings was up 13%, with long form video streams up 74% and 2.9 million registered users for the AVOD 9Now.
Nine's chief sales officer Michael Stephenson told an analysts briefing that the TV advertising market is showing signs of improvement and “booking lead times are now longer and strong demand”.
He said this was due to advertisers slowly switching back to TV after concerns about the transparency and effectiveness of digital.
Nine's momentum at the end of 2016 has continued at the start of 2017 with Married At First Sight performing strongly against My Kitchen Rules.
Nine's highlights
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.