Nine Entertainment CEO Mike Sneesby has “reset the profitability” of the company, delivering a $315 million profit and offering a massive ten percent share buyback scheme.
For the 12 months to June 2022, Nine reported revenue of $2.7 billion, up 15 per cent from the previous year.
Group EBITDA of $701 million equates to growth of 24 per cent, ahead of the 22 per cent guidance given by the company in February.
Net profit after tax was $349 million, up 34 per cent on last year.
Nine also announced a record, fully franked dividend of 14 cents per share, as well as a 10 per cent share buyback program starting this month, which “reflects the company’s strong performance and balance sheet”, according to Peter Costello, Chairman of Nine.
Costello said diversification in a tough market has been the key.
“2022 has been a record year for Nine, on many levels. From a profit perspective, we have reported the highest ever Group EBITDA as well as Total TV and Publishing EBITDA and margin.
“At the same time, our ambition to accelerate profitable growth from our digital businesses is being realised, with more than 50 per cent of EBITDA now attributed to our digital expansion, tracking ahead of the long-term targets we have previously communicated.”
Nine’s Broadcast division comprises of Nine Network and 9Now (Total Television), as well as Nine Radio.
This division reported EBITDA of $401 million, up by 19 per cent, on revenues of $1.372 billion, which were up by 10 per cent.
12 per cent of Total Television revenue came from digital sources, up from 9 per cent.
The Nine Network saw revenue of $1.1 billion, up 7 per cent, with Metro free-to-air advertising up 9 per cent. Nine commands a 38.2 per cent market share of Metro FTA revenue.
9Now saw revenue growth of 41%, with EBITDA of $101 million, up 37 per cent on FY21.
Stan saw active subscribers rise above 2.5 million, a 6 per cent year-on-year increase.
Despite revenue growth of 22 per cent, Stan saw a 30 per cent increase in costs, due mainly to Stan Sport deals, the NBCU and Starz/Lionsgate output deals, and increased spending on Stan Originals content. EBITDA of just $29 million “reflected a period of strategic investment”, according to Nine.
Nine’s Publishing division continues to thrive, reporting combined revenue of $594 million and EBITDA of $180 million, up 53 per cent on FY21.
“Nine is confident that the diversification and balance of its earnings profile, across growth, subscription and advertising-based businesses, will ensure ongoing, strong margin and profit performance, with almost half of Nine’s revenues now coming from outside the traditional advertising cycle,” Sneesby said.
“Whilst broader economic factors are beginning to impact some areas of the market, Nine’s strong competitive position and balance sheet stands us in good stead.
“We have successfully diversified our earnings base, with more than 30 per cent of our revenue now from subscription and licensing. Moreover, across all of our advertising-based businesses, we are confident that we will continue to grow our share, reflecting our content and distribution capabilities, as well as our focused approach to sales and the associated use of our extensive data pool.
“We expect any market softness will create opportunities for Nine to further strengthen its position as Australia’s Media Company”.
