Nine shares plunge 20% as broadcaster admits TV ad spend down 11% for first quarter
Nine Entertainment Co, has warned its TV ad revenues have declined 11% in the first three months of 2016 compared with last year, saying it expects the free-to-air TV market to drop this year.
In an update to the Australian Securities exchange (ASX:NEC) the company said a poor summer of international cricket, the absence of the Cricket World Cup and the earlier Easter have all affected its bottom line.
Shares in Nine were trading 20% down on the closing price of $1.52 at $1.21 as of 11:00am. The company said it expects to finish with around 37% of the free-TV ad spend for the year – 1.2% lower than last year.
Source: Google Finance
Sounds eerily similar to what started happening about 10 years ago in print media- was only a matter of time before TV followed. Get ready for massive transformation…
Rubbish. There’s still AM radio.
actually @john, radio is holding up arguably best of all traditional media…..
Is this the reason Wiltshire left?
We think so!
Get out before the ship sinks!!
Only weeks ago Nine were talking about how good things were and how good the year will be. Things can certainly change a lot on 2 weeks in TV land.
They need to upweight their episodes of Big Bang.
Cricket was the cause of the decline? Not, maybe, the awful shows they choose to broadcast (repeat infinitum glossy, low-IQ formats filled with advertising of people “Oh shock horror!” facial expressions?) – or the lacklustre lack of quality in scripting and other media channels they represent?
No. It’s the cricket that’s the cause. Obviously.
Poor programming + poor go to market attitude = Nine.
…I think you’ll find the billions spent on sport is running down the rest of the programming, e.g. endless repeats, panel shows, cutbacks etc.
There’s nothing but more of this to come.