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Nine Boss Signals “Record Result” For FY22 As Profits Leap 20%

Nine Entertainment has raised its full-year guidance as CEO Mike Sneesby points to “what would be a record result for Nine.”

The company has declared an interim dividend of 7¢ a share, its biggest dividend since 2016.

Revenue excluding specific items rose 15 per cent, to $1.33 billion, while Group EBITDA before specific items was $406 million, also a rise of 15 per cent, and well ahead of the guidance given by Nine at its AGM in November.

Digital revenye jumped 31 per cent, total television earnings rose by 16 per cent, buoyed by growth in 9Go and Stan, as well as strong free-to-air traction. Nine’s publishing division, including SMH, Australian Financial Review, and The Age, rose by 39 per cent, while Domain benefitted from the housing rush, leaping 53 per cent, year on year.

CEO Mike Sneesby said: “We are really pleased with how Nine closed calendar 2021, with strong audience and revenue performance across all businesses, both subscription and advertising, underpinning 15% growth in EBITDA for the December half and surpassing the guidance we gave back in November.

“Momentum remains clearly positive, with full year guidance now of around 25% Group EBITDA growth to what would be a record result for Nine.”

 

Sneesby points to the company’s range of income streams as key to its continued success.

“Importantly, these results continue to be delivered by increasingly diversified, and increasingly digital revenue streams,” he explains.

“Moreover, this momentum has continued into 2022, with Nine’s content across all platforms underpinning a strong start to the year which, coupled with continuing strength in advertising markets and further growth in subscriptions, creates a great foundation for the business looking forward.”

Sneesby said “Nine’s opportunity has never been clearer.”

Stan enjoyed revenue growth of 23 per cent, with its subscriber base swelling to 2.5 million over the half-year.

Nine is spending substantially in building Stan’s content library, with costs rising by 43 per cent. Most of this is a reflection of Nine’s heavy investments in Stan Sport. Without its sport outlay, costs rose by around 17 per cent, which reflects the ramping up of the NBCUniversal deal, as well as building a library of originals.

“At Stan, we are continuing to grow revenues and subscribers while expanding our annual volume of Stan Originals as we take greater control of our premium content pipeline and continue to invest in Stan Sport,” Sneesby explained.

 



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