Key facts
- Nine Entertainment CEO Matt Stanton is confident new Australian media laws will drive publishing growth.
- The laws compel tech platforms to negotiate commercial deals for news content.
- Nine recently signed an agreement with Microsoft for AI content access.
- The company is undertaking a cost-reduction program of over $160 million.
- Nine reported flat revenue from its publishing arm and a slight decline from its broadcast and streaming units.
Nine Entertainment CEO Matt Stanton expressed confidence in future publishing growth, largely due to new Australian laws designed to ensure tech platforms pay for news content. These laws, passed last week, aim to compel platforms like Google and Meta to strike commercial deals with news outlets.
Stanton indicated that contributions from these platforms are expected to be comparable to previous arrangements. He also highlighted Nine's progress in securing artificial intelligence (AI) deals, citing a recent agreement with Microsoft for its Copilot service to access Nine's content.
This optimistic outlook contrasts with the company's current financial challenges. Nine is implementing a significant cost-cutting program, aiming to strip out over $160 million in expenses over three years. This has led to redundancies in newsrooms such as the Sydney Morning Herald and The Age, impacted by a weak advertising market. However, the Australian Financial Review, Nine's business publication, has remained a strong performer and was spared these cuts.
Overall, Nine reported broadly flat revenue from its publishing division and a slight decrease from its streaming and broadcast units, despite a record performance from its streaming service, Stan. The company is focusing on 'growth assets' like the recently acquired QMS, while reducing exposure to less viable assets. Nine posted a full-year net profit of $142 million from continuing businesses.