As Nine Entertainment’s full-year net profit slump 38% to $194m, the Labor Federal Government is being asked to prop up free to air TV stations, such as Nine, by forcing streaming and TV brands, to openly promote their declining services.

The move is seen as being more about politics, and the Labor Government having influence over a TV megaphone, than letting commercial businesses, compete openly in a market where consumers have voted by investing in streaming over free to air TV services.

Nine’s annual EBITDA was $591.2m – a 16 per cent fall from the $700.7m generated last financial year.

The North Sydney based broadcaster also revealed in their latest financials, that their broadcast costs had also increased, climbing, 7 per cent to $1.36bn, EBITDA was down 20 per cent $319.5m with analysts tipping that the cost of acquisition of new content is set to hurt the business in the 2023/2024 year.

The Federal Governments move to protect Nine Seven and Ten is being floated as the advertising revenue generated by the networks fell by 11% this past year.

Nine’s streaming service Stan, which is approaching 2.6 million subscribers, had a 12 per cent increase to revenue, climbing to $427.6m.

Costs also climbed to $390.5m, up 11 per cent due to the Companies investment in trying to compete with Foxtel.

The company said the increase in costs was due to increased investment in Stan Sport.

Also delivering a poor result was Nine’s publishing arm, which includes titles The Sydney Morning Herald, The Age and The Australian Financial Review

This operation was hit by a 16% fall in advertising revenue, in the second half of the year as brands cut back on spending.

Publishing revenue was $575.2m, down 4 per cent, EBITDA was $164.7m, down 8 per cent and costs were $575.2, down 3 per cent.

Mr Sneesby said it was a “generally softer economic environment” and noted the advertising falls across the business.

Nine CEO Mike Sneesby said, “The advertising market remained subdued, particularly in free-to-air, digital display and print publishing,” he said.

“Nine has implemented a range of cost initiatives across total television which are now expected to enable us to absorb inflationary costs as well as ongoing investment in technology.”

He said expected Nine’s radio arm to continue to see advertising fall in “low single digits” in the first quarter of the 2023/24 financial year.

The Australian recently reported that Nine’s chief financial officer Maria Phillips quit the Company three weeks ago.

Matt Stanton has been appointed to a new role as chief financial and strategy officer.

Mr Sneesby also spoke about the concerns surrounding artificial intelligence and its impact on the media industry.

“Understanding the opportunities and potential threats of AI is part of the day-to-day operation of our business, focusing on how Nine currently uses AI and what the opportunities are for the future development as well as continuing to understand the potential risks associated with the accelerated rollout of various AI technologies,” he said.

The company’s full-year dividend is 11c.