Nine focuses on prospects
NINE Entertainment has slipped to a first-half loss of $236.9 million after falling revenue prompted another big writedown against its free-toair TV network.
Nine yesterday said it was making the $260 million noncash impairment after revenue from its TV business for the six months to December fell 5.3 per cent.
But Nine said its ratings performance improved after a drop in advertising and viewer share during the Olympics, broadcast by rival Seven and that the momentum had continued into this year.
The broadcaster expected second-half revenue share to be up on the first half and on the previous corresponding period.
“We are very pleased with the progress we have made in the past six months and have delivered on our commitment to compete more effectively in free-to-air television at the start of the 2017 ratings year,” chief executive Hugh Marks said.
Seven’s Rio Olympics coverage had hit both the size of the advertising market and Nine’s share of it, Nine said.
Mr Marks said recent audiences were up 13 per cent, with commercial audience share up 3.9 percentage points.
Nine said the improved ratings should translate to fourth-quarter revenue and positive momentum heading into next financial year.
The outlook helped push Nine shares 7.2 per cent higher to $1.035.
Nine said it expected fullyear earnings before interest, tax, depreciation and amortisation to be within published analysts’ forecasts of $158 million to $187 million.