Nine posts $592.2m net loss after writedowns
Nine Entertainment has today become the latest media player to post poorer than expected results with the TV network posting a $592.2m loss after writedowns.
The result came despite Nine’s net profit after tax remaining relatively stable at $140.1m, down 2.9 per cent on last year.
Source: Nine investor presentation
“In what has been a difficult free-to-air advertising market, our June quarter share performance was short of our expectations,” said David Gyngell, CEO of Nine. “However, we are pleased with our improving ratings performance trend over the first couple of months of FY16.”
If Nine’s media sales reps were a little less aggressive on their price positioning, i can guarantee a few extra million would have headed their way instead of channel 7, from my agency alone
complaining about “difficult advertising market” is totally irrelevant when discussing market SHARE. Market share should hold whether the market volumes go up or down.
& his sales department is still employed after being unable to turn into cash their excellent demographic performance?
7 is still smashing them in revenue share whilst 9 continues to deliver the demos……is the CEO going to wake up???
Gotta say I agree with the above comments – how can you be ‘arrogant’ in a declining market?
Really, they got what they deserved based on a total lack of quality representation.
They don’t get my money.
Agree with the above.
You are as good as your next days ratings and delivery to clients buying your airtime.
The arrogance needs to go and partnerships with real value should be the key.
Despite winning almost every TV ratings against seven and ten, they still post a loss. It’s clear television is not the money maker it used to be.
The fact is the sales department at Nine is poor. As per the comments above. That is central to their lackluster revenue result for TV pure & simple. If they were commercially minded the outcome for Nine Ent would be much different. Its a pity really. Change is needed…or nothing will change & 7 will continue to dominate share.
This makes me laugh, especially considering the Seven guys can tend to be challenging to deal with due to incompetence, and Nine still can’t get it right. An apple rots from the core.
Actually, as a media buyer, though there are exceptions in individual salespeople, I find that at present
C7 sales reps – slightly arrogant, slightly incompetent – best products for sale
C9 sales reps – very arrogant – have just about as good as product lineup as C7
C10 sales reps – helpful, a bit desperate – so-so products for sale
MCN sales reps – nice to deal with, helpful, a bit desperate – ratings still poor other than main events
So based on the above market situation and dynamics, C9 should be creaming the revenue share, but their media sales reps make such an arrogant hash of pricing and negotiations, we do our business elsewhere – even when we have led clients into recommending C9 product offer – only for C9 to snatch it away from themselves at the last minute. Idiots.