Mike Sneesby, the new CEO of Nine, is the first to admit that he doesn’t have experience in all aspects of the media group’s diverse businesses.
But he has been reponsible for significant value-building at Nine. He took Stan, the streaming content platform, from a standing start in 2014 to 2.3 million active subscribers and a business valued by some analysts at $1 billion.
At the close of the ASX yesterday, that makes Stan 20% of the almost $5 billion market value of Nine.
Australian startups hitting a $1 billion valuation are thin on the ground. As Nine chair Peter Costello says, Stan would be called a unicorn if it was a stand alone business in the US.
In the half year to December, Sneesby cut costs by 10% and lifted revenue at Stan by 28% to $149.1 million.
But Nine has significant other businesses bringing in more revenue across publishing, broadcast (radio and TV) and marketplaces (Domain and Drive).
Revenue for the whole company was down just 2% to $1.18 billion in half year to December despite the pandemic. Net profit of $178 million was 69% better than the same six months the year before and shareholders were rewarded with a fully franked dividend of 5 cents.
At Stan, Sneesby was known for his content deals in a complex licensing environment coming up against global players such as Netflix. Stan always has programming people want to watch.
Can Sneesby work similar magic with an established media business?
The market likes him so far.
Brian Han, senior equities analyst at Morningstar: “We believe Sneesby is the right person to lead Nine in its continuing metamorphosis into a more digital-centric and subscription-driven group.”
Han says Sneesby ticks a few boxes, including continuing a digital focus.
Outgoign CEO Hugh Marks transformed Nine from a company with 90% of revenue in free-to-air TV to one with 40% of earnings from digital, a number which will rise to 60% in five years.
While Sneesby has excellent digital credentials (one of a group of people to emerge from the early days of ninemsn) and streaming media content success, his resume is lacking in journalism and print.
Sneesby is spending the time between now and his April 1 start date understanding the company and working on a set of objectives.
“I clearly have a view on that but I think it would be too early for me to be out here shooting off a view on what I think the priorities are,” he told a media briefing.
Sneesby points to his career over a number of different areas.
“This organisation now is a very diverse media organisation,” he says.
“In terms of people's backgrounds, I don't think there is an executive out there .. except for (outgoing CEO) Hugh Mark’s ... who's led a company with the diversity of media assets that we have here.
“It doesn't surprise me that people may say, your forte is here or your forte is there.
“The commitment that I make to staff and to the board is that I will be across all areas of the business.
“I'll make sure that I understand that people in the business and that we get the best outcomes for our people and for the business.”
Sneesby emphasises the length of his career in media.
He is an electrical engineering graduate with an MBA who headed corporate strategy and business development at ninemsn.
There he also established a portfolio of high growth digital media businesses including the startup of MSN New Zealand and management of the EPG and listings business HWW.
He was the CEO of the Microsoft/Nine Entertainment e-commerce joint venture, Cudo, up until its sale in 2013.
Before that he set up the IPTV service in Dubai for the Saudi Telecom/Astra Malaysia joint venture lntigral.
“I've been around this business for a long time,” he says.
“My career has been an important part of my life. I love working in the digital media space. I love working in the media space. And I love the people that are in this organisation today.
“It is a real honour for me to be in this position.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.