Michael Stephenson, Nine's chief sales officer, sees the advertising market at the bottom, or near to it, of a downturn.
Television advertising has been struggling, with the total TV market softer than expected, down 11% in 2023 and 9% in the half year to December.
The two ASX-listed TV networks, Nine Entertainment and Seven West Media, have both reported weakness in the advertising market with uncertain economic conditions.
Seven reported a steep drop in net profit after tax, down 52% to $54.46 million for the half year to December.
Nine reported falls in revenue and profit in a "weak" advertising market for the half year to December. Revenue fell 2% to $1.37 billion in the six months. Net profit after tax was down 21% to $149.5 million.
The media group says the advertising market remains difficult in the current March quarter with Metro free-to-air revenue expected to be down in the mid teens (%) on the same quarter last year.
"The economic conditions that we operate in are still still difficult," Nine's Stephenson told a briefing of market analysts, following the results.
"What I am increasingly more confident about, however, is that we are, if not at the bottom, certainly very close to the bottom of the of the ad cycle."
Nine Network reported a revenue decline of 11% to $508 mmillion for the six months to December.
The Metro Free To Air advertising market fell by 13%, with Nine attaining a share of 39.0%. Nine’s Metro revenue share for the 2023 calendar year, the basis of agency deals, was 40.4%, up marginally on 2022, and a more than 20-year high.
Across 2023, Nine claimed #1 network and primary channel in all key demographics, attracting a commercial network audience share of 39.2% and a primary channel share of 39.8% of the 25-54 demographic.
"Our audience performance is exceptional and our audience share is exceptional," Stephenson said.
"So as that market returns, and of course it will, I'm very confident that we're well placed to take and continue to increase our market share."
When consumers feel confident that there are no more interest rate rises coming, then confidence will start building, he says.
"Television is a pretty good proxy for broader market competence," he says.
Nine has the Olympics ahead this year and this should "contribute to seeing us continue to outperform the market, which is what we what we currently forecasting".
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