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Nine Entertainment CEO anticipates 'growth in publishing' after new media laws

Nine Entertainment's CEO, Matt Stanton, foresees growth in publishing, supported by new laws compelling tech platforms into commercial deals, despite the company cutting over $160m in costs.

  • New media bargaining laws passed last week aim to levy global tech platforms that do not strike deals with Australian news outlets.
  • Nine Entertainment is implementing a cost-cutting program of over $160m over three years.
  • Nine recorded a full-year net profit of $142m from continuing businesses.

Nine Entertainment's chief executive, Matt Stanton, has expressed confidence in a "world of growth in publishing," citing new laws designed to compel tech platforms into commercial agreements. This outlook comes as the network implements significant cost reductions across its newsrooms.

Parliament recently passed revamped media bargaining laws, which allow for levies on global tech platforms that do not reach deals with Australian news outlets for the use of their content. Mr Stanton informed analysts on Wednesday that he anticipates contributions from platforms like Google and Meta, the owner of Facebook, to be comparable to their previous 2021 arrangements.

The company is undertaking a cost-cutting initiative exceeding $160m over a three-year period as part of a business revamp. This includes a recently announced redundancy programme at the Sydney Morning Herald and The Age newsrooms, which have been affected by a prolonged weak advertising market. Nine reported broadly flat revenue from its publishing arm and a slight decline from its streaming and broadcast unit, despite a record result for Stan.

Nine recorded a full-year net profit of $142m from its continuing businesses. Mr Stanton stated that the company is prioritising "growth assets," such as its newly acquired digital outdoor media company QMS, while reducing its involvement with "structurally challenged and smaller assets."

Why this matters: The new media bargaining laws could significantly alter the financial landscape for Australian news outlets by compelling tech platforms to pay for content.

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