Nine Entertainment has released its results for the 6 months to December 2021, recording revenue of $1.3b and a Net Profit After Tax of $213m, which included a post-tax Specific Item expense of $12m.
Group EBITDA, before Specific items, of $406m equated to growth of 15%, ahead of the ~10% guidance given at the AGM in November.
Table 1: Group Results1
6 months to December
$m |
H1 FY22 |
H1 FY21 |
Variance | |
$m |
% |
|||
Revenue | 1,332.9 | 1,154.3 | +178.6 | +15% |
Group EBITDA | 406.3 | 354.3 | +52.0 | +15% |
Net Profit after Tax | 225.2 | 187.4 | +37.8 | +20% |
Net Profit after Tax and Minorities | 212.9 | 178.0 | +34.9 | +20% |
Fully diluted Earnings per Share (cents) | 12.5 | 10.4 | +2.1c | +20% |
Dividends per share (cents) | 7.0 | 5.0 | +2.0c | +40% |
1 Pre Specific Items
Radio revenue is reported as part of the company’s Broadcast division. Radio revenue was $48.9 million, up 11% from $44 million in the previous corresponding period. Radio made a profit (EBITDA) of $6.4 million, well up from the previous period, which was $2.9m.
CEO, Mike Sneesby (pictured), says, “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 theDecember 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.
Importantly, these results continue to be delivered by increasingly diversified, and increasingly digital revenue streams.
“In Radio, we have been strengthening our underlying business, while building our audiences, and with 23% of our listeners now live streaming our content, there is a real opportunity to further expand our Digital revenues.”
Nine’s Broadcast division comprises Total Television (Nine Network and 9Now) as well as NineRadio. Together, Broadcast reported EBITDA of $243m on revenues of $682m for the six months.
With the key markets of Melbourne and Sydney opening up during the half, the Metro radio admarket gained momentum, and finished the half up 13% on the previous corresponding period.
Nine also gained share momentum, both on an audience and revenue basis, with ad revenues up 15% for the half.
Nine Radio reported EBITDA of $6m, more than double the pcp, with the benefits of previous cost reductions and sale restructures combining with the improving advertising market.
The Company intends to pay an interim dividend of 7.0 cents per share, fully franked (payable 21April 2022).
As the abovementioned report says, "...with the benefits of previous cost reductions and sale restructures combining with the improving advertising market..."
All entities whether government or private should always seek to minimise costs.
The acid tests are "...have I noticed any on air changes to the program material that I am consuming?" and "....even though the program has dropped because of budget cuts, for example a weekday edition of the '7:30 Report' to a Mon-Thu edition, the program may well return in another form but not necessarily with the same title, time or host, eg ABC24's afternoon programs and The World..."
There may be a case for TV where 'reality' shows are broadcast instead of dramas and variety shows.
The same could be said in the 1950s and 1960s when labour-intensive programs such as radio serials were replaced with talk and top 40.
FTA radio and television survived.
That's the business model for both media.
Then "...Importantly, these results continue to be delivered by increasingly diversified, and increasingly digital revenue streams...."
Nine, like other broadcasters is capitalizing and monetizing on delivery of program content via IP streaming whether VOD or live-streaming or podcasts.
Ironically, the organizations such as the IPA have accused the ABC of expanding its delivery of services via IP streaming while at the commercial entities are monetizing their IP services. You only have to look at this website to read articles about ARN, Nova as well as Nine's expansions into the digital arena.
Both commericial and government entities have been proactive in expanding digitally.
Yet the story of Nine's revenue for tv, radio and IP delivery like Seven also demonstrates that each of Nine and Seven have annual revenues and fewer services than the ABC.
At the same time, the ABC should also continually look to minimising costs and deliver value for money.
Thank you,
Anthony of critical and analytical Belfield in the land of the Wangal and Darug Peoples of the Eora Nation.