Nine’s Broadcast division, made up of Nine Network, 9Now and Nine Radio, reported full year EBITDA (earnings before interest, tax, depreciation, and amortisation) of $197 million on revenue of $1.1 billion for the year to June.
Nine Network revenue fell of 13%, or $138 million, to $952 million.
The company says disruption caused by COVID-19 had a significant impact on advertising revenue, with the Metro Free
To Air ad market down 14% across the year, and 22% in the second half.
Nine’s Metro FTA revenue share of 39.8%1 was 0.2 pts above 2019, and included a second half share of 41.4%, the highest
recorded by any network for more than 10 years.
Across the year to June, Nine was the #1 Network and Primary Channel in all key demographics, attracting a commercial network share of 37.9% of the 25-54 demographic.
On a primary channel basis, Nine’s share of the 25-54s was 38.5%, more than seven share points ahead of its nearest competitor. In both the December and June halves, Nine won all of the key demographics.
Second half costs fell by 16% or $75 million from cost cutting in response to COVID-19.
Of this, around $40 million related to the interrupted NRL season.
In a BVOD market which grew by 31% for the year to $162 million, 9Now held its share about 50%, for revenue growth of 32%.
Nine, since taking full ownership of its radio assets, has made significant changes to its business – both in terms of personnel, as well as the consolidation of back-office functions, sales and news into Nine and the reformat of the loss-making Sports Network to easy-listening.
The company says advertiser acceptance of these changes, coupled with continued audience strength, should underpin leverage when the ad market improves.
The 2020 numbers:
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