NEC shares have plunged almost 22% (at time of posting) with the release of an update to the Stock Exchange.
Revenue from advertising is down due to poor performance of cricket over summer and the ratings for the opening weeks of the official ratings period. Nine blamed the weather and poor standard of the West Indies.
The network has lost advertising share to Seven and especially Ten.
ASX Q3 Trading Update
The advertising market in the March quarter remained subdued. Nine’s ratings during the period were softer than anticipated, which has impacted FTA revenue share. In particular, Nine’s Summer of Cricket was adversely impacted both by the weather and the standard of the competition, with c30% of scheduled play days lost.
For the quarter, Nine’s Television revenues were down c11%, against Q3 FY15. This was also impacted by the earlier timing of Easter this year and the absence of the Cricket World Cup event.
The Free-To-Air advertising market is now expected to record a low single digit decline for FY16, versus our previous guidance of `flat to down marginally’. Reflecting the disappointing ratings start to 2016, Nine’s share is now expected to be c37% for the year.