Nine boss Matt Stanton plays down talk of media manoeuvres

Nine pocketed $1.4bn this week from the $3bn sale of real estate portal Domain to American company CoStar, and will pay shareholders $780m in dividends arising from the transaction.

Nine has announced Matthew Stanton as its new chief executive officer and managing director. Picture: Nine

Nine Entertainment boss Matt Stanton has sought to downplay the possibility that the company is set to expand its portfolio of media assets in the short-term, despite being cashed up with the spoils of its sale of real estate business Domain.

In its full year results, released on Wednesday, Nine lifted its overall revenue by two per cent to $2.67bn, but group EBITDA (earnings before interest, taxes, depreciation and amortisation) tumbled six per cent to $486m, and net profit slumped ten per cent to $194m.

Nine pocketed $1.4bn this week from the $3bn sale of real estate portal Domain to American company CoStar, and on Wednesday confirmed that it will pay $780m in dividends arising from the transaction, comprising of 49c a share, in addition to a 4c full-year dividend.

“We are pleased with the value this has released, enabling us to return significant capital to our shareholders on a tax effective basis, as well as strengthen our own balance sheet,” Mr Stanton said.

“We believe that Nine is the natural media partner for marketplace content and are continuing to explore opportunities in this space.”

Asked if he was referring to the possible acquisitions of other media assets, Mr Stanton said: “No, not necessarily. I am actually looking at a more … organic (strategy).”

The Nine boss cited a possible expansion of the company’s coverage and investment in its existing Drive and Travel sections, which produce content across its publishing and broadcasting divisions.

When pressed on how Nine might spend the remaining $600m-odd proceeds of the Domain sale, and what shareholders might reasonably expect to see the company pursue, Mr Stanton said: “We will look at opportunities if they fit within our strategy scale. But I think a lot investors are saying (to) just focus on the core … because we know the good assets we’ve got.

“If opportunities come up that are a creative fit with our strategy then we’ll obviously look at them.”

Nine Entertainment board members and acting chief executive officer Matt Stanton, fourth from left, at the company's annual general meeting on November 7, 2024.

Quizzed on whether Nine was engaged in discussions with Southern Cross Austereo – the largest radio broadcaster in Australia – about a possible tie-up, Mr Stanton said formal talks with SCA were not ongoing.

“We don’t really comment on speculation, but there are no talks with SCA,” Mr Stanton said.

Earlier this week, The Australian reported that discussions between the two companies have taken place in recent weeks – a claim that has not been denied by either party.

Mr Stanton also refused to be drawn on the possibility of Nine offloading its talkback radio network, which includes stations in Sydney (2GB), Melbourne (3AW), Brisbane (4BC) and Perth (6PR).

“Well, there is speculation, and there have been some inquiries through to us, but not at the level I think is being talked about,” he said.

“What I would say is there’s no formal process or talks occurring at this point in time. We’re very focused. The strategy for the team is to really drive the sales, the commercial side of it … and we’re focusing on that.”

Mr Stanton acknowledged on Wednesday that he was a “bit disappointed” with the company’s performance over the first half of FY25, but pointed to the strong turnaround of the “total TV” numbers in H2 as a sign that the outlook for Nine is generally positive.

“I think you can see very strong growth … audiences are up. What we’re trying to do is educate the market a bit more … about how strong the total TV is,” he told The Australian.

“I don’t think we’re getting our fair cut of the advertising pie.”

Nine’s streaming service Stan improved its EBITDA by 31 per cent in FY25, while the company’s radio division lifted earnings by 8.3 per cent.

Nine’s publishing arm, which includes The Australian Financial Review, The Age and The Sydney Morning Herald recorded EBITDA of $152m – the same as FY24 – while the division’s revenue fell by 5.9 per cent.

Nine’s share price closed at $1.85 on Wednesday, up 8 per cent for the day.