Seven, Nine shares rally despite Seven’s poor numbers
Nine Entertainment’s share price on the ASX rose dramatically on Tuesday, following reports of Seven West Media’s (SWM) poor H1 FY25 performance. SWM itself also received a 6% bump, indicating that the market liked what it heard despite record low profits and poor earnings.
Although it is not clear exactly what sparked Nine’s 14% jump in Tuesday’s trading, it may be related to indications given on the Seven results call that ad spending is bottoming out.
Nine’s share on Tuesday afternoon
“Based on current expectations and assuming the ad market remains relatively consistent, second half earnings are projected to show modest growth compared to the second half of FY24,” Jeff Howard, SWM’s managing director and chief executive officer, said on Tuesday.
SWM’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) were $92 million – marking a record low for the media giant – as it fell 26% or $32 million on H1 FY24.
Seven West Media’s shares are down over 35% since this time last year.
Nine Entertainment’s H1 FY25 results will be published later in February.
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Lauren McNamara is the associate editor at Mumbrella, covering the agency beat. She joined in November 2022 as editorial assistant, after completing a Bachelor of Communications (Journalism) at UTS.
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