Nine Entertainment chair Peter Costello says the media group has rebounded from Covid

Media group has admitted it was buffeted by a tough advertising market during the pandemic.

Nine AGM at One Den Denison St, North Sydney. CEO Mike Sneesby. Photographed Thursday 11th November 2021. Photograph by James Brickwood.

Nine Entertainment chairman Peter Costello has conceded the “turbulence of Covid” has “heavily impacted” advertising revenue but the company has been finally able to rebound.

In his address at Nine’s annual general meeting on Thursday, he said in the 2021 financial year, “Nine staged a remarkable recovery”.

“The advertising market, which had turned down so sharply in March 2020, rebounded through October, November and December last year and it has now settled at, if not above, the trajectory it had pre-Covid,” he said.

Nine reported “strong profit growth” for the 2021 financial year with underlying earnings up 43 per cent and underlying profit after tax jumping 83 per cent.

Mr Costello also acknowledged the importance of striking important content deals with social media giants Facebook and Google as part of the Federal Government’s News Media and Digital Platforms Mandatory Bargaining Code.

He said it would help “recompense the cost of employing creators to produce the work which will ensure the long-term vibrancy of our publishing business as we continue to produce quality and challenging journalism”.

Nine suffered a major cyber attack in March, which severely impacted both its digital, print and television assets and said consequently the company had “significantly upgraded our defensive systems as a result”, he said.

“Nine has made cyber defence a key priority,” Mr Costello said.

Chief executive Mike Sneesby, who took over from Hugh Marks earlier this year, said in the 2021 financial year the company achieved a good result “despite a difficult quarter”.

However, Mr Sneesby admitted the “recovery in the radio has lagged television”.

He also said consumers were changing their television viewing habits and that the company’s streaming service, 9Now, has become a more important way for Australians to view live television.

Nine shares ended up 2.9 per cent at $3.04.