NEC +1.33%: the media group presented at the Macquarie Conference today, providing a quarterly update alongside the presentation which was broadly better than feared. The Metro Free To Air (FTA) market has been contracting for several quarters with another 13% fall in Q3, though this was better than the ‘mid-teens decline’ guided by Nine at the half-year update and the company continues to win market share. 9Now, the company’s app, showed strong momentum to grow revenues in the low double-digits last quarter while their subscription offering, Stan, has seen both customer growth and price increases. Domain, 60% owned by Nine, also reported quarterly numbers today with costs and capex higher than expected against higher listing volumes, though competitor REA Group (REA) continues to grow quicker.
- The market will be watching the success of Nine’s Olympic coverage for some near term growth, helping to support FY25 earnings. The company remains cheap on ~14x FY24 earnings on a 5% yield. Today’s update read slightly better than expected across most segments.
MM is bullish and long NEC in the Emerging Companies Portfolio
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