Nine Entertainment (ASX:NEC) has confirmed that the country’s media sector is struggling, with declining revenue and earnings. However, unlike its rivals, Seven and Ten, Nine will still pay a dividend, albeit at a lower rate of 8.5 cents per share for the year.
Like its competitors, Nine has been forced to lay off hundreds of employees, including journalists and support staff, to offset weak advertising revenue and the loss of contributions from social media platforms like Meta.
Nine posted a 31% decline in profit for the year to June, falling from $194.5 million to $135 million. Group net profit after tax and minorities dropped 28% to $189.4 million. Group revenue decreased by 3% to $2.6 billion, and EBITDA slid 12% to $517 million.
Nine’s television business experienced a significant 32% slump in earnings, while its streaming service, Stan, reported 5% revenue growth. The publishing business saw revenue decline by 3%, and the radio business experienced a 33% drop in EBITDA.
Despite the challenges, Nine said that it expects to see growth in total TV revenue and metro free-to-air ad revenue in the coming quarter. The company also guided to weaker revenue and EBITDA for its publishing business next year, following Meta’s decision to drop deals with news publishers.
Nine CEO Mike Sneesby remained optimistic, highlighting the company’s growth in total television audiences and the diversification of its revenue streams.