Stan's Record-Breaking Performance Fueled by English Premier League Deal: Nine's Financial Results Revealed
Nine's recent English Premier League broadcast deal has had a positive impact on Stan, with over 200,000 new subscribers joining the streaming service. This growth has contributed to a record-breaking performance for Stan, as highlighted in Nine's financial results. The media company reported a 10% decrease in profits to $194 million, while revenue increased by 2% to $2.68 billion. The market responded positively to these results, with shares rising by 11% in early trading.
Stan's earnings saw a significant increase of 31% to $60.3 million, with revenue also rising by 10% to $492 million. The surge in subscribers following the acquisition of the Premier League rights has been a key driver of this growth. The financial impact of this subscriber growth is not yet reflected in the latest results, but it has undoubtedly been a significant factor in Stan's success.
As part of the sale of Domain Group to CoStar, Nine will pay out $840 million in dividends. This includes a special dividend of $0.49 per share, totaling $780 million, as well as a 4ยข full-year dividend. The sale of Domain Group will bring in a total of $1.4 billion for Nine, with CEO Matt Stanton hinting at potential organic investments in the business, such as leveraging AI for operational efficiencies and developing new products.
The broadcasting division, encompassing free-to-air and the digital platform 9Now, saw a two per cent increase in total revenues to $1.26 billion. However, earnings in this segment declined by 22% due to rising costs. On the other hand, the publishing division, which includes prominent publications like The Age and The Sydney Morning Herald, experienced a six per cent drop in revenue to $526 million. This decline was partly attributed to the conclusion of a commercial agreement with Meta and challenges in the digital and print advertising market.
Despite these challenges, digital subscription revenues have helped offset the decline in print advertising for Nine's publishing division. The company remains focused on strategic investments and operational efficiencies to drive growth and innovation across its various business segments.