Quietly, around SCA market updates, ARN’s AGM today and CEO Matt Stanton’s involvement in the Macquarie conference in Sydney, Nine also released a trading update with losses for radio advertising revenue and a realistic picture towards TV gains.
The trading update said that broadcast advertising revenue “proved weaker than earlier expectations” with a double digits decline (%) in Q3. Digital revenue compensated somewhat with more than 20% growth.
TV advertising increases of 8% in the same period, impacted by the then forthcoming May election in March and April, were said to not affect “the current economic and market uncertainty is impacting the outlook for the balance of this financial year.”
Like SCA working to offload their TV assets, Nine too have received a non-binding indicative proposal from CoStar to acquire 100% of the issue capital of Domain, with due diligence extended to complete this week.
Nine expects to have further cost cuts through to the end of FY27 of more than $100m, of which $10-20m is expected happen before the end of FY25. That’s in addition to the previous guidance of $50m by the same period.
Jen Seyderhelm is a writer, editor and podcaster for Radioinfo.
The update statement provided at the link https://www.nineforbrands.com.au/announcements/pdf/2141673
did not make me any wise as to the market and revenue streams.
From the document relating to broadcasting:
"Nine Radio’s Q3 broadcast advertising revenues proved weaker than earlier expectations with a Q3 decline in the low double digits (%), while digital revenue grew by more than 20% in Q3 on pcp.
Continued strong audience performance across Streaming and Broadcast.
Nine’s Q3 Radio broadcast advertising revenue declined in the low double digits (%) on Q3 FY24"
In respect to radio, it says two contradictory statements: "revenues decline...in the low double digits" and "continued strong audience performance".
With market leaders in Sydney, 2GB and Melbourne, 3AW, you'd think that revenues would be strong.
The statement should have elaborated how despite a strong market the revenues are weaker.
This document did not make the reader wiser.
Anthony, wants clear signals, reconciling strong markets with revenues, Strathfield South, in the land of the Wangal and Darug People's of the Eora Nation