Double-digit declines in total TV revenue at Nine due to the weak advertising market and driven by metro FTA have won out against stronger audience performance, lower costs and BVOD gains and led to a 3% dip in full-year revenue to $2.6bn.

Nine Entertainment Co's group EBITDA fell by 12% to $517.4 million for the full year to 30 June 2024, while EBIT was down 17% to $361.2 million. Net profits also saw a drop of 22% to $189 million after specific items.

The company's total television revenue dipped by 10% to $1.13 billion, with a 2% increase in costs bringing EBITDA to $208.3 million. Metro FTA was down 12% over the year to $941 million, a rate that slowed to 9% in Q4 in the lead-up to the Paris 2024 Olympics. By comparison, the regional ad market declined by 5%. The Nine Network reported a 12% decline in revenue to $941.3m for FY24.

This was despite Nine noting growth in Total Television audiences across the year, underpinning confidence in revenue outlook, when the advertising market improves, and claimed to have leading Total Television revenue share in FY24 of 40%.

Agsinst this but not making up the shortfall, 9Now saw an 8% revenue growth for the year to $189.3m, reflecting a 48.6% revenue share in the traditional BVOD market, which grew by 13%. Nine reported daily active users on BVOD grew 13% year-on-year, reflecting a 21% increase in total minutes.

Digital revenue growth of 35% in audio was reported, with radio industry leadership in live streaming audiences. However, total audio revenue was down 3% year-on-year to $103.3 million.

Nine reported 5% growth in subscription and licensing revenues (excluding Domain) to 31% of wholly-owned Group Revenue. Domain's EBITDA contribution to Nine grew by 32%, with growth in both new 'for sale' listings (+4%) and Average Revenue Per Listing (+18%). Domain revenue was $391.1 million for the full year, up 13%, with EBITDA of $137.1 million.

Stan revenue hit $447.8 million in FY24, up 5% year-on-year, with EBITDA up 34% to $46 million. Stan saw an 8% growth in average revenue per user, a subscriber base of 2.3 million, and marked its fifth year of consecutive profitability.

On the publishing side, revenue was down 3% to $558.6 million, and EBITDA down 7% to $152.6 million. Nine's metro mastheads were impacted by the softness in the broader advertising market. Print advertising declined 9% across the year while digital advertising revenue declined by 16% across the 12 months. However, subscriptions in publishing were a solid contributor, with 500,000 new subscribers across The Age, Sydney Morning Herald and The Australian Financial Review. Registered users now sit at 1.7 million.

Mike Sneesby, Chief Executive Officer of Nine, said, "In a year of challenging economic and advertising market conditions, there were some clear positives in this result. We have seen growth in our Total Television audiences this year as we have continued to invest in our content, standing us in good stead as we approach agency negotiations for CY25."

"As we continue to focus on the diversification of our revenues, Subscription and Licensing at Nine's wholly owned businesses, Stan and Publishing, together grew by around 5%, to more than 30% of Group revenue ex Domain. This is a positive performance, particularly against the backdrop of economic and competitive market conditions - of particular note, our Metro mastheads grew both overall subscription and digital revenues across the year."

Sneesby noted efforts over the past couple of years to rebalance the cost base. $65m of cost efficiencies delivered across the year, resulting in lower Group costs ex Domain. Nine said this focus will continue into FY25, with an estimated $100m of underlying cost out expected across FY24 and FY25.

Nine announced it would make as many as 200 people redundant in June and confirmed 85 across the publishing business last month.

"Our industry has been the subject of significant regulatory review over the past 12 months, including Prominence, Anti-Siphoning and gambling advertising. We have also seen the News Media Bargaining Code challenged as Meta demonstrates its intention to disregard the policy behind the Code," Sneesby continued. "The common theme across the majority of these regulatory matters relates to the increasing dominance of global tech companies. The rate at which these companies are broadening and deepening their influence is becoming an increasing threat across a wide range of industries including media, creating greater urgency for the Government to act quickly and decisively in the interest of all Australians.

"As our audiences become increasingly digital and with the implementation of our new consumer data platform complete, the value of the combined media and data assets of Nine becomes clearer. As we bring these assets together with our Marketplaces businesses, Domain and Drive, there will be further opportunities to leverage the strength of the Nine Group and these content verticals."

Sneesby was also quick to note through the Olympics, and Paralympics which begin today, the power of Nine's Integrated Audience Platform has come to life - with 40 channels of content available across FTA, 9Now and Stan, highlighted across Nine's audio assets, mastheads and websites.

"The Olympics in Paris proved to be an enormously successful event for us and one that clearly demonstrates the merits of our strategy and significantly enhances our future positioning. Premium content coupled with cross product distribution and promotion creating a unique, integrated and complementary platform for both audiences and advertisers. This is our future as Australia's Media Company," he added.

A final dividend of 4.5 cents per share for a full-year total of 8.5 cents, fully franked, has been declared.