Media company Nine Entertainment said it aimed to reduce underlying expenses by A$50 million in the year to 30 June 2025.
Chief Executive Officer Matthew Stanton said the company had focused on rebalancing its cost base to allow it to continue to invest in the content, data and technology that generated returns and underpinned its long-term strategy and competitive position.
“We have committed to take a further $50m of underlying costs out in FY25 - equating to a two-year total of around $100m,” Stanton said in a speech to the Annual General Meeting.
Stanton said Nine remained confident the diversification and balance of its earnings, across growth, subscription and advertising-based businesses would ensure ongoing, strong profit and margin performance.
More than half of Nine’s revenues come from outside the traditional advertising cycle.
“Like you, we are disappointed by the market valuation of Nine, which seems too heavily focused on our traditional Television business, while largely ignoring the digital growth opportunity of our key assets across Publishing, Streaming, Audio and Marketplaces. And giving little value to our audiences, our reach and the benefit of our integrated audience platform,” he said.
Nine shares have more than halved in the last two years and are trading at the lowest level in more than four years.
Chair Catherine West said sexual harassment, bullying, misuse of power and inappropriate behaviour was a problem in Australia, particularly in the media, and an independent review of Nine’s workplace showed the company was not immune.
She said the Nine Board recognised action and accountability were required to restore and maintain trust and had made it very clear inappropriate behaviour must stop.
Management had been tasked with holding people to account. We have made it very clear that there will be consequences for people engaging in such conduct.
“The Board and management are strongly focused on the response to the review and the acceleration of work underway to strengthen culture across the business. On behalf of the Board, I can assure you we will do what needs to be done,” West told the meeting.
Nine owns assets covering television, digital media, radio, and print including the Nine television network, Australian Financial Review, Sydney Morning Herald and The Age, streaming service Stan, and a stake in digital marketplace Domain Group.
At 11:15 am (AEDT), Nine (ASX: NEC) shares were 1.5 cents (1.4%) higher at $1.12, after trading between $1.10 and $1.125, capitalising the company at $1.77 billion.