Nine posts $234m profit in first results since Fairfax merger completion
In its first financial year results since the completion of the Fairfax merger, Nine has posted a net profit after tax of $234m, a 12% rise from the previous year. Group earnings before interest, tax, depreciation and amortisation (EBITDA) grew 10% to $424m on an overall revenue of $2.3bn, down 1% from 2018’s results.
The 2019 financial year also saw the business sell ACM, completed 30 June 2019, and its events arm, completed 30 May 2019. Stuff NZ remains for sale, after dropping 10% in revenue and 24% in EBITDA to $28m for the year. The main costs across the business were related to restructuring ($36.6m), including cost-cutting across digital and publishing, and the Fairfax merger. Acquisition-related costs were $22.2m, and the net impairment on the merger of Car Advice and Drive was $17.7m.
Is this because they removed a ton of operating costs (i.e – people) over the last fin year?
Not wonder, given their salaries are well below average. Nine should be more concerned about treating their people well & fostering a better work environment than their profits, which will eventually flounder like Seven West Media.
Should they pay their staff more? of course
Will they? Not unless you are in the club
Pay peanuts and work people to the bone is not a sustainable business model.
Where is the government intervention here around paying people in line with what they bring to a company.
In saying that more than half of the bums on seats are paid more than they bring
Where’s my axe !