Nine posts improved profits despite Mi9 slipping
The newly-floated Nine Entertainment Co has revealed its first half-yearly results to the Australian Securities Exchange, showing revenues were up 9.3 per cent and a profit increase of nearly 25 per cent on a like-for-like basis.
Growth was driven by the Nine Network which wrote 4.7 per cent more in revenue in the second half of 2013 taking $649.6m, despite having the London Olympic Games in the second half of 2012, with EBITDA up 24.7 per cent to $149.2m.
The company has alo said it is confident the V unit will continue to grow with resurgent ratings for cricket and good numbers for The Block, but said it has limited visibility on bookings for the last quarter of the financial year.
However, digital business Mi9 saw a decline in EBITDA of 7.5 per cent in the six months to $13.7m, despite earnings rising 0.8 per cent to $79.4m, with the company blaming the result on a “change in product mix” with Microsoft reducing the number of ad units amongst the reasons cited.
CEO David Gyngell said in a statement: “I’m pleased with our performance in the first half. Each of our businesses has performed well and we are making good progress integrating our newly acquired Adelaide, Perth and Mi9 operations.”
Highlighting the new one hour news bulletin as a cornerstone of the current affairs schedule which is designed to “reduce our reliance on third party content”, he added: “We are confident our positive momentum will carry through to the full year.”