Nine Entertainment, the parent company of Australia’s Nine Network and streamer Stan, reported disappointing total revenue for the year to June, with profits down 31%.
mike sneesby
Media group profits fell from A$194.5 million (US$132.4 million) to A$135 million, with the TV business seeing a sharp 32% drop in profit.
On the positive side, Stan reported a 24% increase in revenue to A$46 million, with revenue up 5% to A$447.7 million on the back of 2.3 million subscribers, up from 2.2 million last year. It became.
Nine CEO Mike Sneesby remained optimistic, citing growth in total TV viewership and the company’s moves to diversify its revenue streams.
“Our subscription and license revenue accounts for more than 30% of our wholly-owned subsidiary revenue and has grown 5% for the year, with growth in both the Stan and Publishing divisions,” he told local media. he said.
Nine Entertainment, the Australian broadcaster of the 2024 Paris, 2028 Los Angeles and 2032 Brisbane Olympics, has revealed that it has paid out A$77 million of its A$305 million contract to broadcast the games. However, Sneesby argued that this would be a long-term project. Win for the company. Coverage of the Olympics led to a spike in subscription numbers, with Stan Sport’s subscriber numbers increasing by 50%.
Nine has announced it will cut costs by A$100 million in the 2024 and 2025 financial years, which has already resulted in 200 job cuts.
Sneesby has suggested in interviews with analysts that the company is seeking more “flexibility” in terms of M&A activity and may be considering selling stakes in its publishing and radio assets. Suggests.
Sneesby also addressed recent controversies surrounding the network’s workplace culture.
He said he was proud of the improvements, but admitted: “We have also been subject to significant public criticism regarding our culture and the actions we are taking to address unacceptable behavior in the workplace. We take comments and feedback from team members very seriously and are working with industry-leading third parties to understand the scope of the issue and to ensure that our processes and culture similarly support an inclusive and positive working environment. We guarantee that we will promote it.”
