Nine has its digital strategy firmly in focus despite a cautious outlook for 2023 with uncertain economic conditions.
In a trading update to shareholders at the media group’s AGM, CEO Mike Sneesby said operating performance for the six months to December was expected to be broadly in line with previous guidance and company expectations.
First half EBITDA, before specific Items, is now expected to be around the low end of the guidance cited in August of $380 million to $400 million.
Nine believes it is too early to give guidance for the full year.
However, Sneesby says: "Across all of our advertising-driven businesses, total television, publishing and radio, Nine believes it has gained share in the first half, and that in FY23, we expect Nine’s advertising revenues to out-perform the markets in which we operate.":
And Nine has diversified revenue to give some protection in any advertising downturn.
Sneesby told shareholders: “Nine remains confident that the diversification and balance of its earnings profile, across growth, subscription and advertising-based businesses will ensure ongoing, strong profit and margin performance, with almost half of Nine’s revenues coming from outside the traditional advertising cycle.”
A slide form the AGM presentation:
Sneesby later told a media briefing: “We're not making forward statements about the second half, because quite clearly, there is an evolving economic landscape.
“We remain cautious around what that will look like. And obviously, we are managing our business in a way that reflects that.”
This focus on digital growth is still key to Nine’s longer term strategy.
That’s using Nine’s premium content to deliver increasingly diverse revenue streams from both consumer subscriptions and advertising, across all available distribution platforms.
“Nine’s Total Television business is perhaps the best example of this and represents a great opportunity for Nine,” says Sneesby.
“Key to Nine’s total television proposition is the performance of our content which continues to lead the market in our targeted 25-54 demographic.
“9Now is fast becoming Australia’s preferred way to consume live television. Smart TV’s are now almost ubiquitous across Australian households and the option of live streaming our programming is seamless. Same TV, same content but now, a better-than-broadcast experience in terms of quality, and a markedly enhanced advertising proposition."
Nine's latest trading update:
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.