Nine notes ‘market uncertainty’ as radio revenues fall
Nine has given a muted trading update in which it reported a double digit revenue drop in its audio division, and flagged that increased TV revenue was due to the election, and unlikely to last.
This market update comes ahead of CEO Matt Stanton’s participation at the Macquarie conference in Sydney on Wednesday, and shows Nine’s Total TV advertising revenue increased by almost 8%, in the March quarter, consistent with projections made in February.
“Whilst the election did bring some money into the advertising market in March and April,” the update reads, “the current economic and market uncertainty is impacting the outlook for the balance of this financial year.”
Total TV cost guidance is expected to be broadly flat, on FY24, once Olympics revenue is removed, while Stan is expecting second half EBITDA growth to exceed the 16% growth reported in the first half of FY24.
Publishing EBITDA is expected to remain in line with the first half of FY24, which declined by 4% year-on-year, to $74.3 million. Digital subscription revenue is up 14% for the quarter.
Nine Radio’s Q3 broadcast advertising revenues “proved weaker than earlier expectations, with a Q3 decline in the low double digits (%),” although digital revenue grew by more than 20% in the quarter.
Nine declined to make a trading update on Domain, “in light of the outstanding CoStar proposal, and ongoing due diligence process.”
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