Nine Entertainment reported total TV advertising revenue increased by almost 8% in the March quarter but sees uncertainty ahead.
The company said growth in Nine’s free-to-air revenue share and BVOD revenues more than offset a free-to-air market which is estimated to have been marginally down.
“Whilst the election did bring some money into the advertising market in March and April, the current economic and market uncertainty is impacting the outlook for the balance of this financial year,” Nine said in a trading update.
CEO Matt Stanton, speaking today at the Macquarie conference, outlined further cost cutting.
Nine expects "cost efficiencies" to the end of the 2027 financial year of more than $100 million, of which $10 million to $20 million is expected to be realised this financial year, on top of the previous guidance of $50 million.
Total TV cost guidance for the year remains unchanged, with full year reported costs, ex Olympics, expected to be broadly flat on last financial year.
Streaming platform Stan continues to expect second half EBITDA (earnings before interest, taxes, depreciation, and amortisation) to exceed the 16% growth reported in the six months to December.
Nine now expects Publishing EBITDA to be broadly in line with the first half, with ongoing strength in digital subscription revenue, up 14% in the March quarter, and an improved outlook on costs, broadly balancing the impacts of advertising seasonality.
Nine Radio’s March quarter broadcast advertising revenues were weaker than earlier expectations with a decline in the low double percentage points. Digital revenue grew by more than 20%.
A slide from the presentation to Macquarie:
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