Nine has pointed to consistently improved ratings as one of the key drivers of its growth in both revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) for the 2018 financial year (FY18).
Metro FTA advertising recorded 2.5% growth for the year, the first year of growth for this market in four years. This included growth in the six months to June (second half) of 3.8%.
Nine CEO Hugh Marks says the growth of its audience share in the 25-54 bracket, and a 38.2% commercial network share for FY18 led to the 6% overall revenue growth and the 25% EBITDA growth, which reached $257 million for the financial year.
"The strong operating performance from last year continued across our entire suite of assets," Mark said.
"Positive free to air TV ratings momentum combined with our focus on the 25-54 age demographics is translating to improving revenue share."
FTA performance
Nine Network reported revenue growth of 7% for the year, on an improved share of a stronger free to air market.
Its free to air EBITDA increased by 27% for the year, despite the "head-wind of the recently introduced annual spectrum charge", as well as content investment, this included new programming ventures such as Love Island.
For the 12 months to June, Nine’s metro FTA revenue share of 38.6%1 was up 2.9 points on FY17.
Nine digital
Nine's digital arm recorded a revenue increase of 7%, underpinned by long form video, particularly its broadcast video on demand (BVOD) platform 9Now and an increasing contribution from both PedestrianTV and CarAdvice.
The company also more than doubled its profit in its digital business, with 9Now also experiencing 90% plus growth in long form streamings, which resulted in approximately 90% revenue growth for the platform.
For the year, 9Now grew its registered user base to around 6.5m. Long form streams increased by 93% for the 12 months, and revenue was up 89% on the previous corresponding period to $41m.
Addressable advertising and "combined sales momentum" were considered core drivers behind Nine's strong digital performance, as well as sales momentum in the company's digital publishing arm.
"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," Marks says.
Streaming service Stan, which Nine currently owns a majority stake in, recorded a "seasonally strong" period for sign-ups, with active subscribers now exceeding 1.1m.
The service also reported a revenue growth of 72%, and a cost increase of 23%.
Fairfax merger
Earlier this year, Nine and Fairfax outlined plans to merge their businesses in one of the biggest media shake-ups in recent history.
The merger will see Nine shareholders own 51.1% of the combined entity with Fairfax shareholders owning the remaining 48.9%.
Nine was unable to comment further on plans for the merger, stating in its results that it would await the results of the current ACCC investigation, as the company remains confident that the transaction will be completed by December 2018.
In terms of the FY19 predictions, based on market growth of 1%, Nine is expecting to report group EBITDA of between $280m and $300m.
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