S&P/ASX 200 Index (ASX: XJO) stock Nine Entertainment Co. Holdings Ltd (ASX: NEC) is leaping ahead of the benchmark today.
Shares in the media and entertainment company closed yesterday trading for $1.34. In late morning trade on Wednesday, shares are swapping hands for $1.38 apiece, up 2.8%.
That's a good sight better than the 0.7% losses posted by the ASX 200 at this same time.
This outperformance follows the release of Nine Entertainment's full-year results for the 12 months ending 30 June (FY 2024).
Read on for the highlights.
Nine Entertainment share price lifts on results
- Revenue of $2.62 billion, down 2% from FY2023
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $517 million, down 12% year on year
- Net profit after tax (NPAT) of $216 million, down 22% from FY 2023
- Final fully franked dividend of 4.5 cents per share, down 10% from the prior final dividend
What else happened with the ASX 200 stock in FY 2024?
The Nine Entertainment share price looks to be getting some added support today, with the ASX 200 stock reporting growth in its total television audiences across the year.
Management said this growth underpins their confidence in a stronger revenue outlook once the currently sluggish advertising market improves.
As for FY 2024, Nine Entertainment noted the weak advertising market more than offset the positive impacts of audience performance and its lower costs. Across all of television, Nine's revenue declined by 10%, while EBITDA of $208 million was down 32% on FY 2023.
On the cost front, the ASX 200 stock achieved $65 million of cost efficiencies over the 12 months.
Nine also reported strong growth in its audio segment, with digital revenue growth of 35% year on year. And Domain's EBITDA contribution to the company increased by 32% from last year.
The final dividend of 4.5 cents a share brings the full-year Nine Entertainment dividend to 8.5 cents a share, fully franked. That's down 23% from FY 2023.
As at 30 June, Nine had a net debt of $489 million.
What did management say?
Commenting on the results helping boost the ASX 200 stock today, Nine Entertainment chair Catherine West said, "Nine has continued to perform well in a challenging market, remaining focused on delivering the best content to all Australians across multiple platforms."
Nine CEO Mike Sneesby added:
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 CY 2025.
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.
What's next for the ASX 200 stock?
Looking at what could impact the ASX 200 stock in the year ahead, Nine noted the positive start to FY 2025 "with a strong performance from an incredible Paris Olympics".
Nine also expects FY 2025 to be another year of growth at Stan.
And the company said that as 9Now grows in relative importance, this segment is expected to be around 20% of Nine's Total Television revenues in FY 2025.
With the absence of digital platform revenue from Meta Platforms Inc (NASDAQ: META) in the new financial year, revenue and earnings from Nine Publishing are expected to be down year on year.
Nine Audio's Q1 advertising revenues are expected to grow in the mid-single digits. And through July, Domain has experienced ongoing growth.
Nine Entertainment share price snapshot
With today's intraday lift in the Nine Entertainment share price factored in, the ASX 200 stock is down 32% over 12 months.
