Nine Entertainment has seen its net profit drop for the first-half of FY23 as investment in sports and other programming clashes with declining advertising.

The network delivered a net profit after tax of $190 million for the six months to December 31, a significant 35.2 per cent short of its $225 million profit during the same period in 2021.

Revenue increased 5 per cent to 1.4 billion, while EBITDA crashed to $370.5 million, down 9 per cent from the previous period’s $406.3 million.

The company announced a fully franked interim dividend of 6 cents.

Net debt sits at $291 million, after Nine spent $67 million purchasing back 33 million shares through its buy-back scheme.

Nine Network, 9Now, and Nine Radio saw segment revenue rise 5 per cent to $715.8 million, with EBITDA down 8 per cent to $223.5 million, which Nine puts down to “a number of programming one-offs in, which in total added up to around $20 million”.

Aside from the Australian Open, Rugby, and UEFA rights, extended coverage of the Queen’s death added to these costs.

Split up, the Nine Network brought in revenue of $573 million, up 3 per cent, with 9Now up 19 per cent, to $88.6 million.

Stan’s revenue was up 12 per cent to $206.4 million, but costs rose 17 per cent, to 188.5 million, with EBITDA down 18 per cent, to $17.9 million. The blow-out were due to sporting rights, and increasing investments in Sony programming and Originals.

The publishing side was mainly flat, with revenue up 0.1 per cent, to $299.7 million, and EBITDA was up 2 per cent to $96.1 million. Digital advertising declined by 8 per cent.

Domain saw EBITDA down 19.2 per cent to $46.3 million.

Looking forward, Nine projected its Total Television’s advertising revenue will decline in “the low mid-single digits” percentage-wise, during the current quarter, while its costs will creep up by the “low single-digits.”

“We are really pleased with how Nine closed calendar 2022, with strong audience and share performance across all businesses, both subscription and advertising,” CEO of Nine, Mike Sneesby, said (pictured above).

“Nine’s strategic focus on content investment has resulted in clear revenue share growth across all of our advertising mediums.

“Against the backdrop of rationalising investment by international streamers, Stan’s strategic positioning in Originals and Sport, together with its strong licensed content stands it in good stead.”

Sneesby also said “sport remains key” to its future growth and investment.

Nine shares are down 4.6 per cent this morning.