Nine Entertainment ups profits 35 percent on record TV and publishing results

“Congratulations to Mike, Peter and the team on this record-breaking result, strong balance sheet and return to shareholders,” Gordon said. “Nine’s continued transformation into a diversified media company sets it apart and gives us great confidence in Nine’s future.”

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Sneesby said the main drivers of growth are digital advertising and subscriptions. “We have made much faster progress in digitizing our business than our long-term goals, despite the fact that our traditional revenue streams hold up better over the long term.”

Analysts said the results came in above consensus estimates, but some were skeptical of the company’s full-year 2023 half-year earnings guidance. Nine is forecasting consolidated first-half EBITDA of $380-$400 million, compared to $406.3 million US dollars in the previous year . “We stay
Be careful if the consensus expectations are too high,” said the analysts at Macquarie.

Sneesby said Nine is facing a range of inflationary pressures, including expectations that company-wide wages will rise by 3 per cent and rising paper costs for printed products. But he said he’s confident in the company’s ability to remain efficient.

Nine will pay a fully stamped final dividend of 7¢ per share on October 20, bringing the full-year dividend to 14¢ per share (the highest since its ASX listing in 2013).

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Nine were granted a “recognition bonus” earlier this month to full-time employees who do not participate in an incentive scheme.

Fraser McLeish, an analyst at MST Marquee, said the buyback is the best option for the company.

“The revenue guidance suggests things are looking up and the first quarter is looking pretty robust. There will be some higher costs in the TV business that will impact the first half, but other than that it’s looking pretty solid,” he said.

“A buyback is perfectly reasonable given the current share price, the debt level is very low and will be highly positive for earnings. There’s still a fair amount of flexibility if they want to do other things.”

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https://www.smh.com.au/business/companies/nine-profits-up-35-per-cent-in-record-result-for-tv-publishing-20220825-p5bclw.html?ref=rss&utm_medium=rss&utm_source=rss_business Nine Entertainment ups profits 35 percent on record TV and publishing results

Brian Lowry

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