Rising costs and tough TV ad market eat into Nine’s profit

Original article by Lilly Vitorovich
The Australian – Page: 19 : 23-Aug-19

Nine Entertainment Company has posted a 2018-19 statutory net profit from continuing operations of $216.6m, which is three per cent higher than previously. Challenging conditions in the advertising market saw the Nine Network’s revenue fall by six per cent to $1.09bn; its costs rose four per cent to $876.6m, and Nine expects a similar increase in costs during 2019-20. The group’s publishing division posted full-year earnings of $82.7m, compared with $50.2m previously. Shareholders will receive a final dividend of $0.05 per share, and a full-year payout of $0.10.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, FAIRFAX MEDIA LIMITED, MACQUARIE MEDIA LIMITED – ASX MRN, STAN ENTERTAINMENT PTY LTD, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, SEVEN WEST MEDIA LIMITED – ASX SWM

Seven set for tough result as ratings flop

Original article by Zoe Samios, Leo Shanahan
The Australian – Page: 23 : 19-Aug-19

Tribeca Investment Partners’ Jun Bei Liu expects Seven West Media to announce weak earnings and writedowns when its 2018-19 financial results are released on 20 August. The media group had issued a profit warning in May, and the Seven Network’s audience share is currently 2.4 per cent lower year-on-year. In contrast, the Nine Network’s audience share has risen by 3.4 per cent. New Seven West CEO James Warburton has noted that the Seven Network has some "ageing formats"; data from OzTAM shows that ‘My Kitchen Rules’ and ‘House Rules’ in particular have lost significant audience share in recent years.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, NINE NETWORK AUSTRALIA LIMITED, TEN NETWORK HOLDINGS LIMITED, TRIBECA INVESTMENT PARTNERS PTY LTD, OZTAM PTY LTD

Local content move for digital players

Original article by Max Mason
The Australian Financial Review – Page: 29 : 29-Jul-19

Communications Minister Paul Fletcher has signalled that streaming video providers may be required to invest in more local content in the wake of the Australian Competition & Consumer Commission’s landmark inquiry into digital platforms. He says there is a strong case for subjecting digital platforms to the same regulations as traditional broadcasters. The ACCC’s final report noted the inconsistencies that are inherent in the current approach to media regulation.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, STAN ENTERTAINMENT PTY LTD, NETFLIX INCORPORATED, AMAZON.COM INCORPORATED, YOUTUBE INCORPORATED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY

MasterChef hosts’ exit to hit revenue, viewers

Original article by Zoe Samios
The Australian – Page: 7 : 25-Jul-19

Nunn Media MD Chris Walton says the Ten Network’s ratings and revenue will be affected by the departure of ‘MasterChef’ judges George Calombaris, Matt Preston and Gary Mehigan. Nunn adds that sponsors of the reality-TV show will be "sceptical" about a new team of judges for the next season. Ten is parting ways with the trio after failing to reach agreement on a new pay deal. OzTAM figures show that the 2019 season finale of ‘MasterChef’ attracted 831,000 metropolitan viewers, compared with 1.126 million in 2018.

CORPORATES
TEN NETWORK HOLDINGS LIMITED, NUNN MEDIA PTY LTD, OZTAM PTY LTD, NINE NETWORK AUSTRALIA LIMITED

Alston Determination on the agenda for Fletcher

Original article by Max Mason
The Australian Financial Review – Page: 30 : 15-Jul-19

The federal government is reviewing a ruling that online live streaming of TV and radio content is not subject to the Broadcasting Services Act. The ministerial determination was made in 2000 by former Communications Minister Richard Alston, and it is slated to expire on 1 October 2019. Amongst other things, scrapping the distinction between live streaming and broadcasting may impact on the cost of sports rights, given that the online and TV rights to sports such as the AFL and NRL are currently sold separately.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, SEVEN NETWORK LIMITED, NINE NETWORK AUSTRALIA LIMITED, TEN NETWORK HOLDINGS LIMITED, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, PHONOGRAPHIC PERFORMANCE COMPANY OF AUSTRALIA LIMITED, COMMERCIAL RADIO AUSTRALIA LIMITED, APPLE MUSIC, SPOTIFY LIMITED, WIN CORPORATION PTY LTD

Seven content deal ads to Facebook’s TV reputation

Original article by Zoe Samios
The Australian – Page: 22 : 10-Jun-19

‘My Kitchen Rules’ and ‘Better Homes & Gardens’ are among the Seven Network’s shows that will be featured on Facebook Watch. Seven West Media has struck a deal to provide Facebook’s streaming service with digital content based on some of its most popular TV shows. Seven Studios CEO Therese Hegarty says new content will be published on Facebook Watch every day, including some exclusive content. She notes that some of the content will be ad-supported.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, SEVEN STUDIOS, FACEBOOK INCORPORATED, FACEBOOK WATCH, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

News Corp not interested in free-to-air TV: Miller

Original article by Max Mason
The Australian Financial Review – Page: 13 : 4-Jun-19

News Corp Australasia chairman Michael Miller says pay-TV operator Foxtel is the media group’s primary broadcasting focus in Australia, and it will not seek to acquire a free-to-air network. The merger between Nine Entertainment and Fairfax Media in 2018 prompted speculation that News Corp could bid for the Seven Network. However, News Corp has since launched streaming video service Kayo Sports, which is part of Foxtel’s strategy to compete with digital rivals.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, KAYO SPORTS, SEVEN NETWORK LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED, FOX SPORTS AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, MACQUARIE MEDIA LIMITED – ASX MRN, TEN NETWORK HOLDINGS LIMITED, CBS CORPORATION

Empire grows as Seven West Media takes control of Community Newspapers

Original article by Hamish Hastie
The Sydney Morning Herald – Page: Online : 28-May-19

Seven West Media has struck a deal to buy out News Corp Australia’s 50.1 per cent stake in their Community News joint venture in Perth. Seven West Media’s Maryna Fewster says the portfolio of 12 community newspapers and 17 digital titles will complement the company’s existing media assets in Western Australia. Community News was incorporated in 1985, and its acquisition by Seven West Media will be completed by the start of July.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, COMMUNITY NEWS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC

Nine dices up inherited events arm

Original article by Lilly Vitorovich
The Australian – Page: 19 : 22-May-19

Sydney’s City2Surf race is among five sports events that the Ironman Group will acquire from Nine Entertainment in a deal worth $31m. Nine will retain about seven of the events that were previously part of Fairfax Media’s events business, including the Night Noodle Markets and Good Food Month. They will be integrated into Nine’s publishing division, while a number of smaller events will be discontinued. Chinese-owned Ironman Group manages more than 230 events in 53 countries.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, IRONMAN GROUP, FAIRFAX MEDIA LIMITED, WANDA GROUP, AUSTRALIAN COMMUNITY MEDIA, THORNEY INVESTMENT GROUP AUSTRALIA PTY LTD

Pundits and pollies in a race to call it first

Original article by Lilly Vitorovich, Zoe Samios
The Australian – Page: 23 & 25 : 13-May-19

Australia’s five free-to-air TV networks will provide live coverage of the federal election on 18 May. Data from OzTAM shows that 1.8 million people watched the 2016 election coverage on the ABC, Seven and Nine, after Ten opted against live coverage. Nunn Media MD Chris Walton notes that the 2019 election has attracted more interest than other recent elections, adding that the cost of providing live election coverage is not significant for the networks. Pay-TV company Sky News will also have live election coverage.

CORPORATES
OZTAM PTY LTD, AUSTRALIAN BROADCASTING CORPORATION, SEVEN NETWORK LIMITED, NINE NETWORK AUSTRALIA LIMITED, TEN NETWORK HOLDINGS LIMITED, SPECIAL BROADCASTING SERVICE (SBS), SKY NEWS, NUNN MEDIA PTY LTD, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA