Credit: Miguel Teirlinck via Unsplash
Nine, in a trading update, reported a weaker than expected advertising market and plans to cuts costs further.
The company still expects another half of EBITDA growth, with further cost efficiencies, as well as the benefit from the conclusion of the Ben Roberts-Smith appeal process, helping to offset the “weaker-than-expected” advertising market.
“The further cost efficiencies cited above are expected to result in more than $100 million of underlying cost out across FY26 and FY27, ahead of the previously guided $90 million.”
“Nine continues to focus on accelerating its Group strategy, underpinned by organic investment in its core business,” the company told the AGM.
“In the short term, Nine is focussed on cost initiatives, as well as the structural objectives.
“Nine’s exposure to both digital and subscription markets is helping to offset the advertising market softness, and furthers our strategic opportunity of using the power of the Nine Group to deepen our connection with audiences and advertisers by harnessing our unique data and premium content to drive growth.”
Nine Audio’s September quarter advertising revenue was weaker expected and the company is acting to mitigate through short-term cost initiatives.
CEO Matthew Stanton told the AGM he was proud of the progress made this year in strengthening the culture at Nine.
“Our plans for cultural transformation are ambitious and we would not achieve anything without the commitment to change from everyone at Nine,” he said.
‘In line with the recommendations from the Intersection report, we have devoted more time and resources to gathering feedback from our people.
“Our people are proud to work for Nine. They believe the company is well-positioned in the media space and feel optimistic about our future.
“We are incredibly proud of what our people have achieved this year, and I’d like to thank each and every one of them for their efforts.”
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.