Nine Entertainment Co. (NEC) - FY15 result broadly in line with our estimates
The Nine Networks TV Revenue was down 1.1% on FY14 proforma to $1208m, EBITDA down 15% $206m, Nine Live: Revenue was up 5.6% on FY14 proforma to $238.7m, EBITDA up 3.1% to $70.1m, Nine Digital: Revenue up 33.1% on FY14 proforma to $163.4m, EBITDA up 40.4% to $21.9m, Cash flow generation remains strong with operating free cash flow at $297m in FY15 and operating free cash flow conversion at 103%. Net debt at $524m at FY15, with net leverage at 1.8x EBITDA. Nines Outlook: Market remains very short and volatile – however, July and August (est) have recorded modest growth. FY16 metro market expected to grow modestly, at best. Regional markets expected to continue to under-perform. Ratings performance has improved markedly since July. Given competitive environment and timing of major events, FY16 share likely to be marginally lower. Programming costs expected to increase 2% in FY16 (pre the benefit of FY15 Specific Item provisioning),driven by contracted higher costs associated with NRL and cricket. Non-programming costs expected to be flat. Read the full summary here: (VIEW LINK)
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
1 topic
1 stock mentioned