Stan grows subscribers and revenue in full year financial results

ASX-listed Nine Entertainment Co. today released its 2022 Full Year financial results which showed Stan, had a 22% revenue growth to $381.2 million, driven by a 9% increase in ARPU, and growth in active Stan subscribers of 2.5 million (up 6% year-on-year and increasing on February 2022).

Sports subscribers have also grown strongly – in Q4, average active subscribers to Stan Sport were more than 150% higher than the same quarter last year.

Nine’s subscription businesses, Stan, Publishing, and Domain, continue to grow in relative importance to the Group. Subscription revenues in the first quarter are expected to grow mid-single digits at the key mastheads, and the low double-digits at Stan. In FY23, Nine is expecting to record growth in both Revenue and EBITDA at Stan, with EBITDA expected to be more evenly phased across the halves than in FY22.

Nine CEO, Mike Sneecby said: “Investment in Sport, Events, and Originals also continues at Stan – which remains Australia’s leading local streaming service. This strategy has continued to grow subscribers and build a stronger, more differentiated, and valuable business for the future.

At Stan, we have continued to grow ARPU and revenues, and have remained clearly profitable, and cash flow positive, notwithstanding key investments in Sports, Events, and Original content.”

Together with close to double-digit growth in ARPU2, this resulted in revenue growth across FY22 of 22%. The 30% increase in costs primarily reflected the increased investment in Stan Sport. Ex Sport, costs were up by ~16%, reflecting the ramp-up of the NBCU and Starz/Lionsgate output deals, as well as the increased rollout of Stan Originals.

Overall, EBITDA of $29m reflected a period of strategic investment – both in Originals to diversify Stan’s content sources and build a long-term library asset, and in live content, primarily Sport, as a key differentiator to other entertainment-based streaming platforms in Australia.

In FY22, Stan continued to position itself as the leading local SVOD player, focusing on Originals and its live sports proposition.

Stan’s expanded slate of Nine Originals was launched with strong results, particularly from the movie Gold, starring Zac Efron, and series including Bump Season 2, The Tourist (co-produced with BBC and HBO Max) starring Jamie Dornan, Wolf Like Me (co-produced with Peacock) starring Isla Fisher and Josh Gad and the first two installments of the new Revealed documentary series co-produced with Nine, Amongst Us – Neo Nazi Australia and No Mercy, No Remorse. In FY23, Stan is expecting to further expand its Originals commitment, with 20 currently slated for release.

Stan also remains a key aggregator of premium exclusive and library entertainment content from around the world, with Yellowstone (Paramount), Dr Death (NBCU), Better Call Saul (Sony), Billy the Kid (MGM), and the Power franchise (Starz/Lionsgate) all proving popular.

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