Nine Entertainment reported revenue of $1.3 billion, up 15%, and net profit after tax 18% higher at $213 million for the half year to December.
Group EBITDA (earnings before interest, taxes, depreciation, and amortisation), before specific items, was ahead of guidance at $406 million, up 15%.
Free-to-air television EBITDA increased 10% to $189 million, equating to a first half margin of almost 34%.
Nine’s broadcast division, including Total Television (Nine Network and 9Now) as well as Nine Radio, reported EBITDA of $243 million on revenue of $682million.
Streaming media platform Stan posted a 23% rise in revenue to $183.5 million, with current active subscribers of more than 2.5 million.
CEO Mike Sneesby says the momentum has continued into 2022, with Nine’s content across all platforms underpinning a strong start to the year which, coupled with continuing strength in advertising markets and further growth in subscriptions.
Nine expects total television EBITDA growth of close to 20% for the full financial year to June.
“We are really pleased with how Nine closed calendar 2021, with strong audience and revenue performance across all businesses, both subscription and advertising, underpinning 15% growth in EBITDA for the December half and surpassing the guidance we gave back in November," he says.
"Momentum remains clearly positive, with full year guidance now of around 25% Group EBITDA growth to what would be a record result for Nine. Importantly, these results continue to be delivered by increasingly diversified, and increasingly digital revenue streams.
"Nine’s opportunity has never been clearer. In Total Television, we have balanced our programming decisions across broadcast and streaming, and carefully invested in and expanded the reach of 9Now, resulting in record Total Television revenues in calendar 2021, more than any year in Nine’s history.
"At Stan, we are continuing to grow revenues and subscribers while expanding our annual volume of Stan Originals as we take greater control of our premium content pipeline and continue to invest in Stan Sport.
"In Radio, we have been strengthening our underlying business, while building our audiences, and with 23% of our listeners now live streaming our content, there is a real opportunity to further expand our Digital revenues.
"And in Publishing, we will continue to invest in the product, ensuring greater audience reach and higher subscriber numbers, of course augmented by the licensing agreements with Google and Facebook."
OUTLOOK:
"Calendar 2022 has started strongly, in terms of both audiences, across all platforms, and advertisers, across all major categories.
"Nine has started calendar 2022, as the clear leader across all key demographics, more than 10% points of share ahead of the next placed channel on a prime time, primary channel basis in our targeted 25-54s and around 7% points ahead on a Total People basis – Nine’s strongest start to the calendar year in OzTAM history.
"Reflecting this, in the current quarter, Nine’s Metro FTA ad revenue is expected to be up around 10% on the same quarter last year. Forward bookings remain comfortably ahead of same day last year. In H2 FY22, Nine expects to record stronger FTA EBITDA growth than the 10% reported for H1.
"9Now continues its strong growth trajectory, with more than 35% revenue growth expected in the March quarter (on pcp).
"Nine expects positive momentum to continue through the rest of CY22, as 9Now continues to build its presence in the broader digital video market. As a result, Nine expects Total Television EBITDA growth of close to 20% for FY22."
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.