Question 1

Is the shift toward digital actually making a difference to the company's earnings?

Accepted Answer

Digital transformation is now a primary earnings driver, with pure digital revenues accounting for 40% of Group EBITDA. This growth is led by the streaming service Stan, which has scaled to over 1.8 million subscribers, and 9Now, which commands 50% of the BVOD market share.

Question 2

What does the future look like for traditional broadcast television?

Accepted Answer

The outlook for linear broadcasting is negative, with metro FTA ad revenues forecast to decline at a CAGR of 3.3% through 2023. This follows a 7.0% contraction in the metro FTA market during the current half, necessitating a pivot toward digital audience monetization.

Question 3

How is the business responding to the overall decline in advertising spend?

Accepted Answer

Nine is aggressively managing its cost base with a three-year target to achieve $100 million in annualized FTA cost reductions. These measures are critical to offset a 2% YoY decline in total Group revenue, which fell to $1,182.5 million amid an 8.5% drop in the total Australian advertising market.

Question 4

Is Nine still the leader in reaching the most valuable audiences?

Accepted Answer

Nine maintains a dominant market position, recording its strongest performance in eighteen years with a 39.4% commercial network share of the 25-54 demographic. This audience lead is being successfully migrated to digital platforms, where 9Now now captures half of all BVOD market activity.

Nine 1H20 update – results in line with expectations

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