Nine Entertainment holds revenue and cost targets
Key points
- Nine Entertainment stated it expects continued revenue and EBITDA growth for the financial year, with gains weighted towards the second half.
- The company increased its three-year cost reduction target to at least $180 million while reporting a 7% rise in first-quarter digital subscription revenue.
- Management attributed the positive outlook to its diversified media portfolio, news bargaining legislation, and streaming growth from Stan Sport.
Nine Entertainment (ASX:NEC) updated its financial targets while reporting an increase in its three-year cost reduction goal to at least $180 million.
The media company navigated a 6% decline in first-quarter television revenue driven by scheduling delays and rival sports broadcasts.
The company stated that the transaction or transition components would “deliver a consistent and growing stream of annuity-style earnings going forward”.
Publishing arm digital subscription revenue grew by 7% in the first quarter, while outdoor advertising revenue is expected to achieve mid-teens growth in the first half.
Management expects earnings growth to pick up in the second half as its diversified operations balance ongoing economic uncertainty.
Following the announcement, the Nine Entertainment share price was up at $0.74.
The group continues to lean into digital expansion and cost discipline to offset headwinds in traditional broadcast media markets.
