S&P/ASX 200 Index (ASX: XJO) stock Nine Entertainment Co. Holdings Ltd (ASX: NEC) is taking a sharp fall today.
Shares in the media and entertainment company closed yesterday at $1.25. In morning trade on Thursday, they are changing hands for $1.205 apiece, down 3.2%.
For some context, the ASX 200 is up 0.7% at this same time.
This underperformance comes following the announcement of a top leadership shakeup.
Here's what's happening.
ASX 200 stock searching for a new captain
Nine Entertainment shares are sinking after the company revealed that Mike Sneesby will step down from his role as CEO and as a director on the Nine board on 30 September.
This sees the ASX 200 stock saying goodbye to its CEO just three months after chairman Peter Costello exited his position on the Nine board.
Sneesby took the reins at Nine Entertainment in April 2021 and has navigated the company through some difficult times amid declining advertising revenues. The Nine Entertainment share price has dropped by more than 50% during his tenure as CEO.
Nine Entertainment reported its full-year FY 2024 results on 28 August.
Core financial metrics over the year included a 2% year-on-year decline in revenue to $2.62 billion. Net profit after tax (NPAT) of $216 million was down 22% from FY 2023. On the plus side, the ASX 200 stock reported growth in its total television audiences across the year, pointing to a stronger FY 2025 revenue outlook.
Following the successful completion of the Olympics and Paralympics coverage, the company said now is the right time for a leadership transition. While Nine undertakes a recruitment process for a new CEO, chief finance and strategy officer Matt Stanton will take over as acting CEO on 1 October.
Management commentary
Commenting on the leadership shakeup at the ASX 200 stock, Nine chair Catherine West said:
As chief executive officer, his achievements include guiding the company out of the challenging COVID-19 pandemic, securing the rights to the Olympic Games through to 2032 and progressing the strategic and cultural transformation of Nine…
It's also important to acknowledge Mike's immense contribution to the success of Stan, building a successful streaming service that now boasts a broad entertainment and sport footprint with more than two million paying subscribers.
West added that "Matt Stanton is well-placed to lead the business while a search for a new CEO is underway."
Sneesby said, "It has been a privilege to lead this business, but now is the right time to hand over to a new leader."
He continued:
I firmly believe Nine is Australia's best media business, with premium assets and the sector's leading media professionals. I am confident in the future of Nine and remain committed to ensuring a seamless handover to Matt.
With today's intraday losses in the Nine Entertainment share price factored in, the ASX 200 stock is down 41% in 2024.
