Nine Entertainment reported a slide in profit in a challenging advertising market with revenue up just 1% in the six months to December.
Revenue was $1.39 billion for the half year, while net profit after tax fell 25% to $112.2 million.
Total television revenue was up 2% to $612.9 million, with streaming at 9Now offsetting the impact of a weak broadcast advertising market.
Broadcast revenue fell by 3%. The Metro free-to-air advertising market declined by 10.1% for the half, with Nine attaining a revenue share of 42.1%.
The half delivered $35 million of cost cutting and a targeted $50 million for the full year is expected to be exceeded.
The company also set a new cost cutting target of an additional $100 million to the end of the 2027 financial year.
Nine said total TV ad revenue in the March quarter is expected to be up in the high-single digits (%). 9Now continues its positive growth trajectory, with advertising revenue growth in the low-mid teens (%) expected in the March quarter.
Broadcast advertising revenue from both Metro and Regional free-to-air in the current quarter is expected to show mid - high single digit growth.
However, Nine described the advertising market as "remaining short".
Stan’s revenue was up 7% to $245.5 million in the December half, underpinned by both a strong subscriber performance, with paying subscribers currently at more than 2.3 million, and a further 6% lift in average revenue per user.
Nine Publishing reported revenue of $268 million, down 7%. Digital subscription revenue growth, coupled with a strong cost performance, offset much of the impact of the Meta withdrawal. In total, about 62% of Publishing revenue is digital.
Metro mastheads continued to be impacted by a softness in the broader advertising market. Print advertising fell by 14%, while digital advertising revenue dropped 4% across the half.
“In a challenging market environment, we have continued to perform well operationally, while simultaneously strengthening our strategic position and implementing our cultural reset," said Nine chair Catherine West .
Nine acting CEO Matt Stanton said the company spent the past six months building a road map for strategic and cultural transformation.
"I am proud of the way our people have responded, with strong engagement and an overwhelming spirit of constructive optimism.
"I am confident that the changes we have made and continue to implement will ensure Nine remains an integral player at the forefront of media in Australia.
"From Nine’s top-rating coverage of the Olympics, our dedicated and award-winning journalists across all platforms, addictive television including The Block and From, as well as our marketplace presence through Domain and Drive, Nine continues to build on its unique relationship with Australian audiences."
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