Nine Entertainment Profits have slumped 31% despite, the network recently hosting the Olympics, revenue across their TV network fell 9%

Recent financials reveal that consumers are dumping free to air TV for digital apps, with 9Now reporting revenue growth of 8% for the year, what’s not known is how much of this growth was down to the Olympics and consumers accessing free sport on the 9Now app Vs their paid app Stan.

Management claim that they have 46.8% revenue share in the traditional BVOD market, which grew 13% as of June 30th, 2024.

Annual net profit after tax slumped 31% $134.9m.

Under siege CEO Mike Sneesby, blamed “challenging economic and market conditions.” for the Companies 9% fall in revenues to $1.23bn.

Nine’s publishing arm – which includes mastheads The Sydney Morning Herald, The Age and The Australian Financial Review – saw revenue drop 3% to $558.6m.

Stan recorded 24% EBITDA growth in FY24 of $46M.

The business that recently appointed former Edelman and Sony Entertainment PR executive Katherine Browne to head up communications claims that paying subscribers are now 2.3m.

The business got a boost from consumers sighing up for the Paris Olympics. They have not said how much of the growth if any is attributable to their investment in Rugby Union.

Stan recently broadcast the Rugby World Cup and the World Rugby Sevens.

Management claims that ‘During the year, Stan managed its cost base, through both content timing and lower discretionary costs, particularly marketing. This helped to keep the FY cost increase to 3%, notwithstanding the inclusion of the Rugby World Cup and an increased number of Stan Originals”.

Nine said in a challenging economic environment the Group EBITDA target of $553m was not met, instead reaching $513m which impacted the executives’ short-term financial incentives.

In June, nine chief executive officer Mike Sneesby announced that 200 jobs would be cut across the entire media organisation, including between 70 and 90 roles in its print division and 38 roles in broadcast, as the company sought to cut costs.

Among those cuts was online site Gizmodeo lifestyle site Refinery29, gaming blog Kotaku. All  of the  staff were made redundant as part of the restructuring of the Nine owned  Pedestrian Group

Mr Sneesby blamed the cutbacks on the sluggish advertising market and the decision by Meta – the parent company of Facebook and Instagram – to abandon its commercial deals with news outlets.