Nine Entertainment Co. Holdings Limited · ASX:NEC
Nine Entertainment — H1 FY25 Earnings Presentation
28 slides from Nine Entertainment's earnings presentation, Feb 25, 2025
Slide 1: FY25 Interim Results
FY25 Interim Results 25 FEBRUARY 2025
Slide 2: Matt Stanton, Acting Chief Executive Officer
Matt Stanton Acting Chief Executive Officer
Slide 3: Using the power of the Nine Group, we will deepen our connection with audiences
3 Using the power of the Nine Group, we will deepen our connection with audiences and advertisers by harnessing our unique data and premium content to drive growth At Nine, our strategy is to do three things at scale: Integrated Create value for our audiences and advertisers through premium Content
Slide 4: First half highlights include strong audiences, growth in subscription revenues and cost efficiencies
4 First half highlights include strong audiences, growth in subscription revenues and cost efficiencies DIGITAL – ~50% OF GROUP REVENUE PROFITABLE OLYMPICS COVERAGE Up 6% with growth across all key digital revenue streams – Primarily through Streaming and Broadcast but with positive impacts Streamin
Slide 5: Graeme Cassells, Acting Chief Financial Officer
Graeme Cassells Acting Chief Financial Officer
Slide 6: Group Results – Growth in Streaming, Digital & Subscription, offset by weaker advertising market
6 Group Results – Growth in Streaming, Digital & Subscription, offset by weaker advertising market GROUP REVENUE GROUP EBITDA GROUP EBITDA MARGIN H1 DIVIDEND $1.4B $268M 19.3% 3.5 CPS +1% (-15%) (-3.8 pts) (-0.5 cps) A$M H1 FY25 H1 FY24 VARIANCE REVENUE 1 1,390.1 1,371.3 +1% GROUP EBITDA 1 268.4 316
Slide 7: Specific Items
7 Specific Items A$M H1 FY25 DOMAIN - REFER DOMAIN ACCOUNTS (ASX:DHG), 13TH FEB 2025 3.7 RESTRUCTURING COSTS (15.7) TECHNOLOGY TRANSFORMATION PROJECTS (2.7) LOSS ON MODIFICATION OF DEBT FACILITIES (5.7) IMPAIRMENT OF OTHER ASSETS (1.4) TOTAL SPECIFIC ITEMS BEFORE TAX (21.8) TOTAL TAX RELATING TO SPE
Slide 8: Savings across the half of $35m, 4% of (wholly owned) cost base
8 Savings across the half of $35m, 4% of (wholly owned) cost base Costs, pre Specific Items, A$M 1100 1050 SAVINGS IMPLEMENTED ACROSS THE HALF 1000 83 988 950 10 940 5 4 921 905 900 (35) -2% 850 800
Slide 9: Balance Sheet Remains Strong
9 Balance Sheet Remains Strong Wholly owned cash flow, A$M 600 500 489.2 6.0 481.2 56.2 18.4 47.6 400 54.5 18.0 300 (192.3) (0.4) (16.1) 200 100 0 AS AT 31ST DECEMBER 2024, A$M CONSOLIDATED GROUP DOMAIN WHOLLY OWNED GROUP INTEREST BEARING LOANS AND BORROWINGS 786.0 183.8 602.2 LESS: CASH AND CASH EQ
Slide 10: Divisionals
Divisionals FY25 Interim Results
Slide 11: Streaming & Broadcast (Total TV + Stan) – Greater alignment across content & tech
11 Streaming & Broadcast (Total TV + Stan) – Greater alignment across content & tech focused on long-term value creation Revenue1 contribution – H1 FY25 TOTAL SUBSCRIPTION ADVERTISING REVENUE OF REVENUE (& OTHER3) REVENUE $858M $245M $613M (+3%) (+7%) (+2%) BROADCAST COMBINED CONTENT COST BASE ACCOU
Slide 12: Total Television revenue growth underpinned by profitable Olympics
12 Total Television revenue growth underpinned by profitable Olympics Revenue1 contribution – H1 FY25 TOTAL TELEVISION DIGITAL VIDEO NINE MARKET3 MARKET4 REVENUE OF $1.4b $2.2b $613M (-5%) (+19%) (+2%) DIGITAL A$M H1 FY25 H1 FY24 VARIANCE REVENUE FTA 492.7 508.3 (3%) 9NOW 120.2 93.8 +28% EBITDA1,2 c
Slide 13: Stan – Strong subscriber performance driven by both Sport and Entertainment
13 Stan – Strong subscriber performance driven by both Sport and Entertainment Revenue1 contribution – H1 FY25 PAYING REVENUE GROWTH IN SUBSCRIBERS GROWTH OVERALL ARPU >2.3m +7% +6% A$M H1 FY25 H1 FY24 VARIANCE REVENUE 245.5 228.4 +7% COSTS – STAN ENTERTAINMENT 156.5 166.9 +6% EBITDA1,2 contribution
Slide 14: Nine Publishing – strong performance from subscriptions
14 Nine Publishing – strong performance from subscriptions Revenue1 contribution – H1 FY25 DIGITAL REVENUES ~ 62% of total Publishing revenue A$M H1 FY25 H1 FY24 VARIANCE DIGITAL REVENUE METRO MEDIA 125.7 128.5 (2%) DRIVE 10.8 10.2 +6% EBITDA1,2 contribution – H1 FY25 OTHER 30.0 38.0 (21%) PRINT REV
Slide 15: Metro Media – Digital subscription revenue growth more than offsetting print decline
15 Metro Media – Digital subscription revenue growth more than offsetting print decline Revenue1 contribution – H1 FY25 ACTIVE DIGITAL SUBSCRIPTION SUBSCRIPTIONS SUBSCRIBER REVENUES3 >500k4 ARPU5 +15% (+6% on pcp) +4% on pcp A$M H1 FY25 H1 FY24 VARIANCE DIGITAL REVENUE SUBSCRIPTION & LICENSING 94.3
Slide 16: Domain – positive audience metrics and take up of new products
16 Domain – positive audience metrics and take up of new products in a strong listings market Revenue1 contribution – H1 FY25 A$M H1 FY25 H1 FY24 VARIANCE REVENUE RESIDENTIAL 154.9 138.3 +12% OTHER DIGITAL 54.2 55.2 (2%) TOTAL DIGITAL 209.1 193.4 +8% PRINT 8.1 8.7 (7%) TOTAL REVENUE 217.2 202.2 +7%
Slide 17: Total Audio – Strong growth in streaming revenues
17 Total Audio – Strong growth in streaming revenues RADIO NINE RADIO AGENCY DIGITAL LIVE STREAMING REACH MARKET1 REVENUE SHARE REVENUE 417K per week +1% 16.2% Up 33% for an average of 7.5 hours2 A$M H1 FY25 H1 FY24 VARIANCE REVENUE BROADCAST 50.0 49.8 - DIGITAL incl. STREAMING 3.6 2.7 +33% TOTAL RA
Slide 18: Nine2028 – Accelerating Nine's Strategy
18 Nine2028 – Accelerating Nine’s Strategy Using the power of the Nine Group, we will deepen our connection with audiences and advertisers by harnessing our unique data and premium content to drive growth Priorities Description • Increased share of Digital Video Market • Enhancing Nine’s Integrated
Slide 19: Trading update & Outlook
Trading update & Outlook Matt Stanton
Slide 20: Trading Update
20 Trading Update Streaming & Broadcast (Video) Publishing Marketplaces Audio Ongoing strength in audiences of Strong start to calendar 2025 for Nine with New `for sale’ listings have Nine’s Q3 Radio broadcast key metro mastheads with Q3 growth in both streaming and broadcast audiences increased by
Slide 21: At Nine, we shape culture by sparking conversations
At Nine, we shape culture by sparking conversations, challenging perspectives, informing and entertaining our communities. We bring people together by celebrating the big occasions and connecting the everyday moments. Australia Belongs Here
Slide 22: Appendices
Appendices FY25 Interim Result
Slide 23: Appendix 1: Group Divisional Results
23 Appendix 1: Group Divisional Results Revenue1 contribution – H1 FY25 STREAMING & BROADCAST H1 FY25 PUBLISHING DOMAIN3 TOTAL AUDIO CORPORATE ASSOCIATES INTERSEGMENT TOTAL A$M TOTAL TELEVISION STAN REVENUE 612.9 245.5 268.2 217.2 53.6 (7.3) 1,390.1 PCP 602.1 228.4 288.7 207.1 52.5 - - (7.5) 1,371.3
Slide 24: Appendix 2: Reconciliation of wholly owned cash flows
24 Appendix 2: Reconciliation of wholly owned cash flows REPORTED CASH ADJUSTED CASH H1 FY25 CONVERSION1 CONVERSION1,2 CAPEX1 109% 100% $47.6M H1 FY25 H1 FY25 H1 FY24 A$M DOMAIN REPORTED ADJUSTED1 ADJUSTED1 EBITDA (BEFORE ASSOCIATES) 270.1 77.8 192.3 250.4 WORKING CAPITAL RELATING TO AO & OLYMPICS 1
Slide 25: Appendix 3: Forward Estimates
25 Appendix 3: Forward Estimates ITEM FY 25 CORPORATE COSTS – WHOLLY OWNED ~$38M TO 40M DEPRECIATION & AMORTISATION - REPORTED ~$160M TO 170M INTEREST EXPENSE - REPORTED ~$55-65M TAX RATE - REPORTED ~30% CAPEX (EX DOMAIN) ~$95 TO 105M DIVIDEND 60-80% OF NET PROFIT AFTER TAX, BEFORE SPECIFIC ITEMS
Slide 26: Appendix 4: Glossary
26 Appendix 4: Glossary ARPU – Average Revenue Per User Net Debt – Statutory reported cash less interest-bearing loans and (FTA) BVOD – Broadcast Video on Demand borrowings, excluding finance lease liabilities SVOD – Subscription Video On Demand Cash conversion – Operating Cashflow pre Specific Item
Slide 27: Important notice and disclaimer
27 Important notice and disclaimer Important Notice and Disclaimer This document is a presentation of general background information about the activities of Nine Entertainment Co. Holdings Limited (“NEC”) current at the date of the presentation, (25 February 2025). The information contained in this
Slide 28: Slide 28
Nine Entertainment Co. Holdings — H1 FY25 Earnings Presentation on 6ix