Full Year 2024 Nine Entertainment Co Holdings Ltd Earnings Call Transcript
Key Points
- Nine Entertainment Co. Holdings Ltd (ASX:NEC) reported group revenue of $2.6 billion, with digital revenue growing by around 5% across the 12 months.
- The company achieved significant cost savings, removing around $65 million of costs from the business across the year.
- Stan, the company's streaming service, saw a 24% growth in EBITDA to $46 million, driven by an 8% increase in ARPU and solid subscriber performance.
- The Paris Olympic Games were a major success, with Nine achieving an unprecedented daily national total TV average reach of almost 10 million people and generating over $160 million in revenue from both advertising and subscription.
- Nine's integrated audience platform, leveraging first-party data and AI, has shown strong potential for future growth and competitive advantage.
- The advertising market remained challenging, with a 9% decline in the Total TV ad market, leading to a 10% decline in TV revenue for Nine.
- Meta's decision to disengage has impacted Nine's revenue, particularly in the digital publishing segment.
- Despite cost savings, the company faced ongoing cost efficiency measures due to a difficult operating market.
- There has been public commentary regarding the company's culture and workplace behavior, which Nine is addressing with third-party reviews.
- The company's balance sheet showed an increase in net debt from $339 million to $489 million, partly due to dividends and share buybacks.
Good morning, everyone, and thank you for joining us for our full year '24 Results Briefing. I'm Mike Sneesby, CEO of Nine Entertainment, and joining me here today is our Chief Financial and Strategy Officer, Matt Stanton.
I'd like to start off by acknowledging the Traditional Custodians of Country throughout Australia and their connections to land, sea, and community. We pay our respects to their Elders past, present, and emerging and extend that respect to all First Nations people today. For myself, I'm on the land of the Cammeraygal people of the Eora nation.
Through 2024, we've focused on bringing together and executing our strategy to maximize the scale and diversity of our audiences and revenues through our unique suite of media assets. We create and acquire Australia's best content in journalism, attracting large and engaged audiences as we continue to integrate our data and audience platforms. Our rich understanding of our audiences underpins the delivery of personalized, integrated
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