Nine Entertainment Co. CEO David Gyngell has told the market to 'trust us', a commitment that he's backing with $120 million worth of investment across the company in 2012.
Gyngell took to the stage yesterday at the Nine Network 2012 program preview and delivered a short punchy speech to the assembled crowd, which included advertisers, agencies and Nine programming talent.
The Nine boss spoke after Nine ran it's 'sizzle reel', which included a promo for Howzat: The Kerry Packer Story, a mini-series about his former employer. Gyngell has close ties to the Packer family; his father Bruce was best man at the wedding of Kerry and Ros Packer.
“I still get sweaty palms from seeing Kerry Packer. It's a bit like going back to 'Nam for me personally,” Gyngell told the crowd, which erupted in laughter at the spontaneous quip.
Gyngell alluded to recent media reports about Nine's $3 billion debt burden, and sugggestions in the media that Nine Entertainment Co is planning to sell its ACP Magazines division, which it has flatly denied. Reports have also claimed that Nine has an uneasy relationship with private equity owner CVC Asia Pacific.
“I'm not going to give a speech. I'm going to give a commitment. Over the last few months and the next twelve months you're going to be hearing a lot about this company for some of the wrong reasons. I think a lot of you who I speak to on a regular basis and a lot of the journalists here will talk and write about other things beside our business.
“What I will committ to you is that in every part of our business next year there is $120 million worth of investment in our sales structures, in our group teams working together, in launching magazines, in M19, and all those programmes. That's the best bunch of programmes Channel 9 has ever had,” Gyngell said.
In addition to new shows, Nine's ACP announced it will launch two new titles: Womens' Fitness and Elle.
Confirming $120 million in new programming and business ventures, an empassioned Gyngell vowed: "All I can say is that on my watch you will not see anything go backwards in the Nine Entertainment Group.”
Gyngell finished his speech with a nod to CVC Asia Pacific, which he claimed is supportive of the company.
“I've been part of this company my whole life and for the last ten years I've been trying to build this company into something great and that will continue. The sales people have done an incredible job of trying to pull together in a very complicated world. Every part of our business has a new avenue to sell. There are no other issues at this company which means we can't invest. We've got good support from our shareholders and all of our staff, suppliers, advertisers. It's going to be a very big 2012 and beyond.”
After the speech, Gyngell told AdNews that Howzat: The Kerry Packer Story is a “certain hit” and boldly predicted it could attract four million viewers.
Louise Barrett, director of sales at ACP Magazines, told AdNews that Elle was slated for an Autumn launch, with an expected print run of 120,000 copies. She said the licensing deal with the French fashion magazine brand was only signed off in the past week.
Earlier this month, Gyngell told AdNews that Ten Network CEO Lachlan Murdoch was "gaming" in response to Murdoch's bold prediction that Ten would take ratings and revenue share from Nine in 2012.
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