Nine Entertainment Co. has reported a strong financial performance, exceeding analyst expectations. According to Jarden analyst Tom Beadle, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) surpassed both Jarden’s and consensus forecasts by approximately 5 per cent. Underlying net profit after tax (NPAT) reached $95 million, exceeding expectations by over 20 per cent. Nine Entertainment is a media company with television, publishing, and digital assets. It is the publisher of The Australian Financial Review.
The company’s dividend also exceeded estimates, with a 4.5¢ per share dividend declared, compared to Jarden’s forecast of 3¢. Television emerged as the primary driver of the earnings beat, achieving EBITDA comfortably ahead of forecasts, even amid a 14 per cent decline in total TV revenue due to structural advertising pressure.
Stan, Nine’s streaming service, contributed significantly to the positive results, reporting a 24 per cent year-on-year EBITDA growth, also surpassing expectations. Publishing proved to be the weaker segment, with EBITDA falling short of forecasts due to softer advertising revenue.
Looking ahead, Nine anticipates television advertising revenue for the third quarter to remain broadly flat compared to the previous year. However, management indicated that it is premature to provide guidance for the fourth quarter, given that the prior period included the Federal election, which significantly impacted advertising spend.
