Nine CEO anticipates publishing growth despite cost cuts, citing new media bargaining laws

New Media Bargaining Laws Impact

Nine Entertainment's CEO, Matt Stanton, foresees growth in the publishing sector, attributing this optimism to recently passed Australian media bargaining laws. These laws enable levies on global tech platforms like Google and Meta if they do not reach commercial agreements with Australian news outlets for using their journalistic content. Stanton expects these platforms to contribute amounts similar to their previous 2021 arrangements.

Cost Reductions and Business Restructuring

Despite the positive outlook for publishing, Nine Entertainment is undergoing significant cost-cutting measures, aiming to reduce over $160 million in expenses over three years. This restructuring includes a redundancy program at its Sydney Morning Herald and The Age newsrooms, which have been affected by a prolonged weak advertising market. The Australian Financial Review, however, has been spared from these cuts due to its robust revenue performance.

Financial Performance and Strategic Focus

Nine reported broadly flat revenue from its publishing arm and a slight decline from its streaming and broadcast unit, despite a record result for Stan. The company's television network has been impacted by a weak advertising market. Stanton indicated a strategic shift towards "growth assets," such as the newly acquired digital outdoor media company QMS, while reducing exposure to "structurally challenged and smaller assets." Nine recorded a full-year net profit of $142 million from its continuing businesses.

AI Deals and Future Prospects

The company is also pursuing opportunities in artificial intelligence, with Stanton mentioning a "good pipeline" of AI deals. Nine recently signed an agreement allowing Microsoft's Copilot to access its content, indicating a move to integrate AI into its content distribution strategy.