Nine Entertainment posted a 76% rise in net profit after tax to $277.5 million for the full year to June as the media company surged out of the economic trough of the pandemic.
The company noted a "marked recovery" in ad markets, led by television. Across television combined, revenue increased by 12% to $1.15 billion with strong growth across both Nine Network and 9Now.
The company's overall revenue lifted 8% to $2.33 billion. EBITDA (earnings before interest, taxes, depreciation, and amortisation) was 43.5% higher at $564.7 million.
Shareholders won an increased payout with a 10.5 cent a share dividend, a 50% increase.
Nine says the free-to-air television ad market recovered faster and more convincingly than expected and now sees September quarter metro FTA ad revenue up almost 20% on the same quarter last year.
Forward bookings remain ahead of last year, with positive market momentum continuing.
Nine Radio’s ad revenues are expected to grow in the double-digits in the September quarter, with further share improvement across both agency and local ad sales.
CEO Mike Sneesby says the growth in a year which began in the depths of COVID highlights the strength of Nine’s mix of advertising and subscription-based assets.
"We were also successful in continuing to expand our business footprint, particularly in growth areas of the market," he says.
"In Total Television, we have carefully invested in and expanded the reach of 9Now, while continuing to grow subscribers at Stan, and launching Stan Sport.
"In Publishing, that growth has manifested as greater audience reach and higher subscriber numbers, which has been augmented by the successful completion of licensing agreements with Google and Facebook, giving us a stable, incremental revenue stream.
"While this past year has proven challenging, we have been able to establish the base to execute on our longer term strategy.
"Our Television and Publishing businesses have both reached critical inflexion points. Growth in 9Now, coupled with some recovery in Free to Air, has resulted in a combined television business that we expect can now consistently grow revenues through the cycle.
"In Publishing, digital subscription revenues have now passed $100 million, with growth outpacing the decline in print sales. Coupled with our ability to more fully monetise the digital distribution of our content, this will enable us to continue to both invest in Australia’s leading journalism and focus on the profitable growth of the business.
"It‘s an exciting time to have taken the reins at Nine, and I commend the team for how they have navigated the challenges of 2021."
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