The move highlights deeper challenges across Australia's broadcasting sector as advertisers withdraw spending faster than expected heading into the holiday period.
Nine, Australia's leading media group, is grappling with a sharper downturn than initially forecast. At its annual general meeting, the company reported that TV advertising revenue in September and October fell by a mid to high single-digit percentage. This trend aligns with similar updates from competing networks and underscores the vulnerability of traditional media advertising in an era of fast-moving digital transformation.
TV and streaming advertising still generate about half of Nine’s total revenue, though they account for only one-third of overall earnings due to high production costs. In response, the company has increased its planned cost reductions to $100 million over the next two financial years, up from $90 million previously. It is also benefiting from the resolution of a costly defamation case and strong growth in digital subscriptions, which have risen by double-digit percentages in recent weeks.
Beyond trimming costs, Nine continues to face intense competition from global technology platforms that dominate the digital advertising space. These platforms often overlook content accuracy and do not meet local media regulations, placing further strain on established media businesses. Despite shareholders applauding Nine's performance, which included a 55% return over the past year, uncertainty persists due to growing structural challenges.
The company is also undergoing a change in leadership. Its chair is stepping down after nearly a decade and will be replaced by a former senior media executive. Discussions at the AGM also addressed concerns around gambling ad regulations, the influence of major shareholders and Nine’s commitment to strong governance practices.
Following these announcements, Nine’s shares fell 2% to $1.11, reflecting investor caution amid ongoing volatility in the media industry.
