Nine plans to deliver $200m in cost savings in 2020
In an Australian Securities Exchange (ASX) announcement, media company Nine has highlighted a number of operation initiatives, including over $200m of cost savings in the 2020 calendar year, to help it manage the impact of the coronavirus (COVID-19) pandemic.
The biggest cost initiative comes from $130m in savings based on the assumption the 2020 NRL season is cancelled. The premiership is currently postponed until the beginning of May.
Nine has planned a number of cost-saving measures to help it handle COVID-19
$28m in savings across broadcast programming and content has also been flagged, with the broadcaster advising they would be primarily coming from local content and timing changes.
Nine CEO Hugh Marks said he’s confident the business can come out the other side an even stronger company.
“This is a very difficult time for all Australians, on many levels. Notwithstanding an expected significant impact on our business as conditions continue to evolve, we are confident that with our enhanced audience position, our mix of assets and the commitment of the Nine team, we will emerge from this period a strong and more competitive company,” he said.
Nine had flagged a planned $100m in savings across three years in its most recent financial reporting. Those will be expedited, the business reported, additional to the cost initiatives.
$68m are outlines in operational saving, including the removal of bonuses and commissions and a reduction in travel. Finally, $40m in savings in planned from CAPEX and spectrum charge.
Nine has already refinanced its corporate debt facilities and removed its 2020 FY profit guidance.
In the announcement, Nine also reported the majority of its workforce has been transitioned to work from home, but that its newsrooms across the country would stay open.
