Nine (ASX:NEC) share price edges higher on positive update

The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price is edging higher following a positive update. Here are the details.

| More on:
man intently watching tv representing media asx share price on watch

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Nine Entertainment Co Holdings Ltd (ASX: NEC) shares are edging higher this morning following news the company has signed an affiliation agreement. At the time of writing, the Nine share price is trading 1.65% higher at $3.08

What's driving the Nine share price?

The Nine share price is on the move today as investors digest the company's latest update.

According to this morning's release, Nine has entered into a regional television affiliation agreement with WIN Corporation (WIN).

Founded in 1962, WIN is Australia's largest regional television network company. The group provides television and radio broadcasting services into 29 markets across six states in Australia.

Terms of the deal

Under the agreement, WIN will broadcast Nine's metropolitan free-to-air television content from popular channels such as 9, 9Go, 9Gem, and 9Life. This access will be provided across geographical markets in Tasmania, Victoria, Queensland, southern New South Wales, and regional Western Australia.

Nine stated that its television content will now be available across all of metropolitan and regional Australia.

The new agreement will commence on 1 July 2021, and run for a minimum period of seven years.

WIN will pay Nine with an affiliation fee of about 50% of its entire regional advertising revenue. This is expected to positively contribute to Nine's earnings before interest, tax, depreciation and amortisation (EBITDA) from FY22. Furthermore, WIN will provide airtime to Nine through its television and radio network to promote Nine's content.

A sales representation service from WIN will also be provided to Nine in northern New South Wales and Darwin for an agreed time.

Management commentary

Nine CEO Hugh Marks welcomed the deal, saying:

While our relationship with Southern Cross has been strong over the last five years, the opportunities presented by the WIN Network to both extend the reach of Nine's premium content into more regional markets under one agreement, and to work co-operatively with them on a national and local news operation, mean this is the right time for us to return to WIN.

WIN CEO Andrew Lancaster went on to add:

We are pleased to be furthering our already strong relationship with Nine, through this affiliation agreement. Nine has clearly established itself as Australia's leading media business and we are excited to be returning to carriage of the Nine broadcast content to our regional viewers.

About the Nine share price

Over the past 12 months, the Nine share price has trekked on an upwards slope, with gains of close to 150%. Nine shares are currently within a whisker of reaching their record high of $3.16.

Nine has a market capitalisation of around $5.1 billion, with approximately 1.7 billion shares issued.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »