Nine’s Losses Hit $575M
Nine Entertainment reported a net loss of $575 million in FY20, despite audience growth across its key platforms, as the COVID-19 crisis weighed on ad markets broadly.
Nine’s broadcasting division – which includes the Nine Network, 9Now, and Nine Radio – recorded an 11% fall in revenue, even though Nine was the top network and primary channel in all key demographics.
“On a primary channel basis, Nine’s share of the 25-54s was 38.5%, more than seven share points ahead of its nearest competitor. In both the December and June halves, Nine won all of the key demographics,” stated Nine Entertainment.
The fall in TV revenue (-42%) was offset by broadcast video-on-demand (BVOD). Nine’s BVOD offering 9Now grew by 31% in FY20 to $162 million.
Stan was another area of growth, recording revenue growth of 54% in FY20, and an active subscriber base of 2.2 million.
“Digital video consumption and subscriber revenue in particular have grown significantly across the period, while digital advertising markets have improved more quickly as we trade through the worse of the COVID crisis,” said Hugh Marks, CEO of Nine Entertainment Co.
“In the year to June 2020, the combined contribution from Stan and 9Now, the digital components of Doman and Publishing grew by 40%, to around 48% of our total EBITDA.”
Following the announcement, Nine Entertainment’s share price has fallen by 2.6% to $1.71.