Nine Entertainments Share Price Grows

Today Nine Entertainment Co Holdings Ltd [ASX:NEC] shares increased 5.05%.

The entertainment platform has a market cap of $1.81 billion and an enterprise value at $1.7 billion.

This week their shares have greatly increased, and isn’t slowing down anytime soon.

Their return on assets is up by 3.03% and a positive operating margin of 7.80%

What caused this massive surge to take place?

Nine has largely improved its debt position to $46.2 million from a staggering $177.5 million.

Performances for their hit shows such as The Block and Australian Ninja Warriors, were key players in their ratings. The Ashes were also a major benefit to Nines success.

Nine ranked at the top of metro advertising revenue share for the first time since 2005.

9Now is going through strong growth in revenue, as well as their digital publishing business.

Nine and Fairfax Media are the parent companies of the streaming service Stan, which had a total of 930,000 subscribers at the end of 2017. As stated by Nine’s chief executive, Hugh Marks and reported by the Australian Financial Review:

We are the only Australian media business with this unique set of video-based assets, combining the enduring strength of Free To Air TV with high growth businesses in each of BVOD, SVOD and digital publishing.’

Marks believes Nine’s key strengths lies in premium content.

Marks also thinks Nine must push fourth growth across different platforms to increase viewing rates.

Marks is excited by the performance of the new season of Married at First Sight across both television and digital services.

Nine continues to evolve across the business, so they may grow and ultimately survive in this new digital transition.

Future plans

Nine will no longer invest in social media platforms as they discovered the results didn’t exactly live up to their expectations.

Instead they are primarily focusing on rebalancing their content across different platforms.

Nine are growing at a very fast rate compared to the rest of the market, and they wish to keep it that way.

They want to refine and improve their content. Nine believes they are starting to bear fruit from their overall business decision.

The entertainment giant is expecting an increased revenue share of 38.5% for the financial year.

Regards,

Ryan Clarkson-Ledward,
For Markets & Money

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Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:


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