Nine Entertainment Co. (ASX: NEC) has reported the Company’s preliminary final results for the 2018 financial year (FY18). On a pre Specific Item basis, the Company reported Revenue of $1,318m (+6%), Group EBITDA of $257m (+25%) and Net Profit After Tax of $157m (+27%).

Statutory results included Specific Items of $53m after tax, primarily the profit on the sale of Nine’s Willoughby site. Net Profit After Tax, inclusive of Specific Items, was $210m.

Highlights for the period include:
• Consistently improved ratings performance – 25-54s Network share of 38.2%1
• #1 revenue share for the 12 months of 38.6%2, up 2.9 points on pcp
• Group-wide costs up 1%, ex the newly introduced spectrum charge and impact of the extra trading week
• More than doubling of profit at refocused Digital business (ex Bing)
• 90%-plus growth in long form streams resulting in c90% growth in revenue at 9Now
• 1.1m+ active subscribers at Stan currently, growth of c40% over the 12 months
• 5.0 cent final dividend, for full year total of 10.0 cents, fully franked
• Year end Net Debt of $121m resulting in Net Leverage of 0.5X

Hugh Marks, Chief Executive Officer of Nine Entertainment Co. said: “The strong operating performance from last year continued across our entire suite of assets. Positive Free To Air TV ratings momentum combined with our focus on the 25-54 yr demographics is translating to improving revenue share. 

“In Digital, 9Now is experiencing strong revenue growth and our digital publishing business has reported accelerating growth in premium revenues in line with our strategy. Stan has raced through the milestone of 1m subscribers and remains focused on the build of a longer term competitive and profitable local SVOD player.

“The proposed merger with Fairfax will enhance our ability to continue to grow our business for the benefit of all shareholders. The increasing scale of the merged group will expand both our advertising reach and ability to offer innovative solutions, backed by data and Nine’s Galaxy platform. The combined reach of the group’s expanded media assets will enable an acceleration in the growth of the Domain business. While Nine’s ability to invest in and expand what will be Australia’s largest News platform, across television, radio, digital and print is also incredibly exciting.” 

For more information:
Nic Christensen
Head of Trade and Internal Communications 
nchristensen@nine.com.au

Thursday, August 23, 2018