Report Overview

FTA earnings update – could digital save the TV star?

Seven West Media and Nine Entertainment reported their FY19 earnings last week.

Both broadcasters have been investing in ramping up their BVOD platforms along with offering advertisers addressable TV and programmatic advertising solutions while the outlook for their core FTA business remains challenging.

Contents

Key takeaways

Introduction

• Seven West Media FY19 update
• Nine Entertainment FY19 update
• Declining Free-to-Air market
•  Can BVOD save the day?
• Stan provides another lever of growth for Nine
• While Studios remains a steady performer for Seven
• Publishing – digital is the way to go…
• Domain – subdued performance driven by macro weakness

Our take

List of charts/tables

Figure 1. SWM FY19 performance (A$mn)

Figure 2. NEC Group FY19 performance (A$mn)

Figure 3. Australian TV advertising revenues by sub-segment (A$bn)

Figure 4. Time spent viewing FTA, BVOD and Pay-TV (mins/day)

Figure 5. BVOD revenues for FTA operators in Australia (A$mn)

Figure 6. SWM and NEC – BVOD financial metrics (A$mn)

Figure 7. Stan paid subscriber base (in millions)

Figure 8. Seven Studios EBIT (A$mn)

Figure 9. Australian print advertising revenues by sub-segment (A$mn)