Nine Entertainment Co

The newspapers were supposed this month.

Nine Entertainment Co. FY20 Final Results

Nine has released its FY20 results for the 12 months to June 2020. On a Statutory basis, Nine reported revenue of $2.2bn and a net loss of $575m, which included a post-tax Specific Item cost of $665m, largely relating to impairment of goodwill.

On a pre AASB16 and Specific Item basis, Nine reported Group EBITDA of $355m, down 16% on the Pro Forma results in FY19 for its Continuing Businesses. On the same basis, net profit after tax and minority interests was $160m, down 19%.

Key takeaways include:

  • Audience growth across all key platforms – Metro Publishing, Stan, 9Now, Radio and FTA
  • Strong growth from digital video businesses
    o $51m EBITDA improvement at Stan1, with current active subscribers of 2.2m
    o 36% growth in EBITDA at 9Now1 to $49m, with market leading BVOD share of ~50%
  • Ad markets heavily impacted by COVID-19 from March 2020
  • Nine was quick to mitigate the associated fallout with
    o $225m cost-out program – cash basis, CY20
    o Including increasing and expediting previous cost initiatives
  • 40% growth in digital EBITDA to $166m ($178m post AASB16)
  • Evolution of Metro Media business to consumer focus, with reader revenue now accounting for 59% of total revenue
  • Strong balance sheet, with (wholly-owned) leverage ratio

Hugh Marks, Chief Executive Officer of Nine Entertainment Co. said: “2020 was no doubt a challenging year. The results of the strategic growth decisions we have made over the past 5 years, have played out at scale across the year and, as a result, sheltered us from the worst of the market impact of COVID-19.

“Our focus on the growth platforms in the market – primarily digitally based, and video-centric – has paid off. In the year to June 2020, the combined contribution from Stan and 9Now, the digital components of Domain and Publishing grew by 40%, to around 48% of our total EBITDA. Digital video consumption and subscriber revenue in particular, have grown significantly across the period, while digital advertising markets have improved more quickly as we trade through the worst of the COVID crisis.

“On COVID more broadly we were quick to respond when the markets turned, transitioning the majority of our work-force to `work at home’ with minimal interruption. As advertising markets across all sectors came under pressure, we focused on significant short and long term cost initiatives across all of our businesses, successfully removing around $225m of cash costs in CY20, and setting in place the reduction of approximately $230m of long-term P & L cost from our business.

“As a result, the current market conditions have only given greater cause to continue to evolve the positioning of our business. Particularly the migration to digital – clearly evident across both our publishing and video assets. We will continue to drive growth in our increasingly prominent digital businesses while, at the same time, maximizing the performance of our traditional media assets.

“We are confident that this current period of adversity will only make us stronger. We believe we have the right strategy, the right assets and the right people, as well as a strong balance sheet, to ensure Nine’s position at the forefront of the media sector for many years to come.“

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Nine also reported a net debt of $291.2 million as of June 30 this year, but given its diversified businesses, it is in a healthier financial position than Seven West Media.

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During the Nine earnings conference call Hugh Marks was asked about television audience growth during and after the lockdown. He points out that advertising during the Nine News hour and A Current Affair brings in the most revenue.

Transcript of the conference call:

https://finance.yahoo.com/news/edited-transcript-nec-ax-earnings-024108848.html

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3 posts were merged into an existing topic: The Voice

A few photos I found of an outdoor cafe area at North Sydney. Whether this is part of the cafe area where Nine will possibly do outside broadcasts, I’m not sure.

Source: Ron Montague of the Fairfax Media Retired Employees Association on Facebook.

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Good pics, doesn’t look like a particularly attractive spot from which to do OBs from.

Looks like any other office building in any other CBD really.

Certainly no Rockefeller Plaza, or even Martin Place.

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I’m hoping it’s not this area, and that the cafe area is another area, but it’s difficult to tell from the photos.

Looks like Nine Docklands, no way they’d wanna do anything outside there either.

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If they wanted an office building with something approaching a scenic or iconic spot for OBs, WHY North Sydney?

They should have gone for a location in Darling Harbour or Circular Quay.

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Rent most likely would have been more expensive?

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Barangaroo would’ve been the perfect location for them. Neil Breen had the right idea when he expressed a desire for a studio at that location some years ago when he was EP of Today. Beautiful location on the harbour without the iconic bridge and Opera House views in shot to scare off interstate audiences. A missed opportunity.

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But the rent would have been astronomical compared with North Sydney.

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For a small studio or newsroom like Seven has at Martin Place perhaps, not for a fully integrated headquarters. Would have cost an absolute bomb for zero financial benefit.

You can get nice views anywhere using cameras and high quality screens.

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Wasn’t something to do with a lot of their staff residing North of the Harbour Bridge (or something among those lines) a major reason why Nine went for North Sydney as the location of their new HQ?

Agreed. Let’s not forget that Nine’s Sydney 6pm bulletin has been using a liveshot of the Harbour while remaining at their Willoughby studios for about 16 years…

I don’t think it’s quite the same as with Martin Place for example, you can walk past and see the program in action, I think that helps to draw viewers in and to build a rapport with the public.

First glimpse into the new North Sydney newsroom.

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Nine launches radio buying on 9Galaxy from November

Data targeting to be offered across digital radio inventory

Nine is simplifying the media buying process for its radio assets using 9Galaxy, with the platform to offer access to radio inventory from November 1.

This will make it far easier for agencies and marketers to brief and buy Nine across all broadcast platforms, giving them a more efficient process of buying, faster response times and clear post-analysis reporting.

“9Galaxy has led the way as Australia’s most advanced automated buying platform for TV and BVOD inventory since 2018 and will from November 1 make the transactional and reporting process of radio inventory more efficient too,” said Richard Hunwick Nine’s Director of Sales – Television and Radio.

The 9Galaxy expansion comes after a year in which Nine has substantially refreshed its lineup of radio stations in Sydney, Melbourne and Brisbane. 9Galaxy will now integrate with the industry buying platform RadioMATRIX to make the process of buying talk radio simpler and more effective than ever.

Nine also confirmed that in early 2021, it will open up 9Voyager for radio adding it the to self-service platform alongside television and digital, in a move aimed at making our radio platform more accessible to the wider small to medium enterprises (SMEs) market, at a time when they are looking for every possible advantage in driving their businesses.

Hunwick said: “It has been a big year at Nine Radio. We’re asking marketers and agencies to examine our radio proposition – it is talk radio for a new generation. We are asking you to put us onto each and every brief and let us come back to you with a solution, and with innovations like RadioMATRIX it has never been easier to do so.

“However, we don’t just want to make briefing us easier. We also want to make buying us more efficient, which is why we are moving quickly to integrate our radio inventory into the 9Galaxy and 9Voyager platforms.”

Nine has also moved to integrate the data assets of its radio stations, which have millions of Australians listening each month, into its wider data lake of more than 13 million signed-in users.

Hunwick noted that the data integration of signed- in users from 2GB, 3AW, 4BC and 6PR would add a powerful new element to Nine’s data proposition with its 9Tribes product, which is segmented into 54 Tribes across nine verticals that are now available on display on Nine Radio sites and will soon be available on catch-up radio and podcasts.

“From a data perspective, we want brands to have the same abilities they have on our video platform, 9Now, to target and deliver addressable advertising on our radio assets as well,” said Hunwick.

“Across our radio properties in the digital space, today’s announcements further enhance our data offering, with a 13 million-strong data platform of logged-in users giving marketers new tools to build out further understanding of these customers’ behaviour and intent.”


State of Originality: A challenge for brands

Nine looks to build on one of Australia’s most iconic sporting events into part of Australia’s cultural fabric laying down challenge for creatives and marketers .

Nine has announced a million-dollar challenge to marketers to take State of Origin from a sporting blockbuster into a broader part of Australia’s cultural fabric as a must-watch event in which even the ads are unmissable.

Announced at today’s Nine 2021 Upfront presentation, the State of Originalityis an open challenge to brands, marketers and creative agencies to help the NRL’s State of Origin claim the title as Australia’s Super Bowl by creating unmissable big-brand moments during the commercial breaks.

The State of Originality will award $1 million in advertising inventory across Nine’s television, radio, digital and print assets to the commercial judged as best on ground in the live telecast by an esteemed panel. To be deemed eligible to enter, advertising must be booked within the three-game period of State of Origin in 2021.

“State of Origin has long been Australia’s Super Bowl when it comes to the audience it garners,” said Liana Dubois, Director of Powered. “Now is the time for the same to be true of the advertising contained within it.

“The State of Originality is a call to arms for marketers and their creative teams to elevate the power and importance of creativity in delivering results.

“We know that creative, meaning the actual ad itself, is responsible for up to fifty per cent of the total effect of an advertising campaign. Reach is responsible for the other half. Utopia is to crack both. The State of Origin reaches up to four million people, that’s the reach covered. We invite you to crack the creative as part of Nine’s State of Originality.”

While some big brands have been taking advantage of Australia’s most-watched sporting events, including the Australian Open, State of Origin and the NRL Finals, there remains an opportunity for every ad booked at the State of Origin in 2021 to go down in history and become part of an honour roll of Australia’s ads like those in the NFL Super Bowl.

“We want to challenge brands to come up with Australia’s version of Budweiser’s ‘Wassup’, or Apple’s Ridley Scott-directed ‘1984’ which introduced the Macintosh computer to the world. We want to see brands have fun and create magical moments for viewers, like when Darth Vader struggled with his powers before managing to lock his dad’s VW with just the power of The Force,” said Dubois.

“Australia is a creative nation and we want more ads that make advertising famous. We want the ads to be talked about the next day just as much as who scores the winning try.”


Nine announces Powered Enterprise

Nine has today announced the expansion of the capability of its client marketing solutions division Powered with the launch of Powered Enterprise.

The new division within Powered will be tailored to the needs of key C-suite clientele who are looking for partners who can understand and meet their changing needs for business growth.

“Powered Enterprise is for those brands who want to elevate from a transactional relationship with Nine, to go beyond media placement and advertising alone,” said Liana Dubois, Nine’s Director of Powered.

“You already know Powered because you’ve watched its unique client integration in some of Australia’s biggest TV formats, but we are so much more than that. Powered has specialist capability in strategy, cultural insights and advertising effectiveness. Over half of the group operates in our creative studios function, designing, producing and then amplifying creative collateral for brands. And our content partnerships discipline finds ways in for brands, into the fabric of our content across radio, digital, print and television.”

“The launch of Powered Enterprise sees us building on these senior specialist capabilities, all in-house and all together in one proposition.

“Powered Enterprise is for businesses that believe in marketing-led growth, and more broadly for those that believe in the power of total company collaboration. We will develop a business plan for growth right alongside each other.

“This isn’t about one ad campaign or a summer launch. The conversations Powered Enterprise will be having are aimed at understanding an organisation’s horizon planning and co-creating strategies and ideas that deliver against that plan in a way that no other media partner in Australia can.”


Nine launches ‘Audience Match’ to offer people-based marketing

Nine launches Audience Match in partnership with Adobe, enabling Nine to assist brands in activating people-based audiences across Nine’s properties

Audience Match, a custom destination, enables marketers to access greater customer insights, targeting and effectiveness with features to support privacy-conscious experiences

Coles signs on as launch partner as part of its digital transformation

Nine has announced Audience Match , a custom destination designed to give marketers the ability to activate people-based audiences across all of Nine’s properties. As part of the Audience Match launch, Nine will develop a purpose-built solution directly into Nine through Adobe’s data management platform (DMP), Adobe Audience Manager. Audience Match will allow Nine to assist brands in matching their customer data to Nine’s 13m registered users through one streamlined integration.

Brands will be able to better connect with Nine’s audiences by enabling people-based activation of first-party data that customers have agreed to share across Nine’s premium content. Coles will sign on as the launch partner.

Audience Match will enable Nine to assist Australian marketers to move from targeting devices to communicating with their known customers in an automated fashion and in a privacy responsible way.

“Audience Match will help facilitate people-based marketing across Nine, leveraging our signed-in audience of 13m Australians and seamlessly bring together the power of premium content and people-based data to create personalised customer experiences,” said Michael Stephenson, Nine’s Chief Sales Officer. “This partnership gives Australian marketers a unique alternative to both traditional media players and new digital platforms in terms of bringing a quality content environment together with data at scale.”

Audience Match offers marketers the ability to use rich customer data from online and offline sources to segment and more effectively reach their known customers. Marketers can also build look-a-likes of their customers to provide personalised experiences or suppress their audiences to improve media efficiency.

“Audience Match will match hashed email addresses from an advertiser’s data with Nine’s audience data, creating a fully-addressable audience that’s not dependent on cookies with every ad impression linked back to an actual person,” said Mr Stephenson.

“This partnership is extremely important as we know the businesses that will lead in the years to come are those who can bring together data sets across multiple platforms to form an in-depth view of their customers built off their user identity.”

Audience Match will be immediately made available across 9Now including the ability for advertisers to target their own audiences in the living room on a connected TV. In the first half of next year, Nine will roll out Audience Match across its other digital properties.

“The scale and functionality of Audience Match, combined with the publishing depth of Nine’s digital properties, will allow brands to unlock opportunities, enabling more meaningful engagement for both brands and customers,” said Suzanne Steele, Managing Director for Adobe Australia and New Zealand.

One of Australia’s most trusted retailers, Coles has signed on as the exclusive launch partner for Audience Match. This allows the Coles to be customer centric in its approach to marketing. It can market to real people, rather than a device and provide its customers and viewers with personalised and relevant information and offers.

The partnership will enable Coles to simply upload hashed email addresses and customer datasets into Coles’ instance of Audience Manager and select Nine as a custom destination. This enables Coles to transfer their data into Nine for Nine to easily match, segment, buy and optimise every dollar spent across Nine’s properties.

Coles Chief Marketing Officer, Lisa Ronson, said Coles is proud to be winning together with its partners Nine and Adobe by creating new, innovative and meaningful ways to connect with customers.

“Coles is undergoing a digital transformation to ensure we are providing our customers with the most seamless interactions with our brand. This partnership is so important to ensure we are making the most of all the communications we have.

“We need to provide our customers with the most relevant and personalised information so they can make the most informed decisions about what they need and how they shop. We are thrilled to be the launch partner in this initiative because it will help our marketing team make the best decisions on where and how we should communicate.”

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The 2GB logo sticks out like a sore thumb next to every other Nine Radio logo.

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