Nine Entertainment Co. (ASX: NEC) has reported the Company’s interim results for the 2018 financial year (FY18). For the six months, on a pre Specific Item basis, the Company reported Revenue of $720m (+9%), Group EBITDA of $181m (+51%) and Net Profit After Tax of $116m (+55%).

Statutory results included favourable Specific Items of $58m after tax, primarily the profit on the
sale of Nine’s Willoughby site. Net Profit After Tax, inclusive of Specific Items, was $174m.
Highlights for the period include:

– Consistently improved ratings performance – 25-54s Network share of 39.5%1
– #1 revenue share for the half of 40.0%2, up 5 points on pcp
– #1 revenue share for the calendar year of 38.3%, up 3 points
– Group-wide costs flat as efficiency focus continues
– 80% growth in long form streams resulting in 86% growth in revenue at 9Now
– 6% growth in revenues at refocused Digital Publishing business
– Around 930,000 active subscribers at Stan, growth of 33%
– 5.0 cent fully franked interim dividend
– Net Debt of $46m resulting in Net Leverage of 0.2X

Hugh Marks, Chief Executive Officer of Nine Entertainment Co. said: “This was a strong half for Nine, across our entire business. Positive Free To Air TV ratings momentum combined with our focus on the 25-54 yr demographics is translating to improving revenue share. In Digital, 9Now is experiencing strong revenue growth and our digital publishing business has strong growth in premium revenues in line with our future strategy. Finally, Stan is now approaching break-even and looking to further consolidate on its leading local position in this market.

“We are the only Australian media business with this unique set of video-based assets, combining the enduring strength of Free To Air TV with high growth businesses in each of BVOD, SVOD and Digital Publishing. Nine’s strong cash flow and relatively ungeared balance sheet gives us the confidence to continue to prudently invest in our future across these four businesses.

“Nine’s strengths lie in premium content and therein is the opportunity. To harness the growth in viewing across different platforms and distribution models, and optimise the total return on our content spend. We will continue to invest in our future – there is much work still to do but as can be seen from these results, the benefit to our shareholders is becoming increasingly clear.” 

Download full media release here.

For more information:
Nic Christensen
Head of Trade and Internal Communications 
0404 460 607 
nchristensen@nine.com.au