Insights

Nine (ASX:NEC) share price edges higher on positive update

The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price is edging higher following a positive update. Here are the details.
The post Nine (ASX:NEC) share price edges higher on positive update appeared first on The Motley Fool Australia. –

man intently watching tv representing media asx share price on watch

Nine Entertainment Co Holdings Ltd (ASX: NEC) shares are edging higher this morning following news the company has signed an affiliation agreement. At the time of writing, the Nine share price is trading 1.65% higher at $3.08

What’s driving the Nine share price?

The Nine share price is on the move today as investors digest the company’s latest update.

According to this morning’s release, Nine has entered into a regional television affiliation agreement with WIN Corporation (WIN).

Founded in 1962, WIN is Australia’s largest regional television network company. The group provides television and radio broadcasting services into 29 markets across six states in Australia.

Terms of the deal

Under the agreement, WIN will broadcast Nine’s metropolitan free-to-air television content from popular channels such as 9, 9Go, 9Gem, and 9Life. This access will be provided across geographical markets in Tasmania, Victoria, Queensland, southern New South Wales, and regional Western Australia.

Nine stated that its television content will now be available across all of metropolitan and regional Australia.

The new agreement will commence on 1 July 2021, and run for a minimum period of seven years.

WIN will pay Nine with an affiliation fee of about 50% of its entire regional advertising revenue. This is expected to positively contribute to Nine’s earnings before interest, tax, depreciation and amortisation (EBITDA) from FY22. Furthermore, WIN will provide airtime to Nine through its television and radio network to promote Nine’s content.

A sales representation service from WIN will also be provided to Nine in northern New South Wales and Darwin for an agreed time.

Management commentary

Nine CEO Hugh Marks welcomed the deal, saying:

While our relationship with Southern Cross has been strong over the last five years, the opportunities presented by the WIN Network to both extend the reach of Nine’s premium content into more regional markets under one agreement, and to work co-operatively with them on a national and local news operation, mean this is the right time for us to return to WIN.

WIN CEO Andrew Lancaster went on to add:

We are pleased to be furthering our already strong relationship with Nine, through this affiliation agreement. Nine has clearly established itself as Australia’s leading media business and we are excited to be returning to carriage of the Nine broadcast content to our regional viewers.

About the Nine share price

Over the past 12 months, the Nine share price has trekked on an upwards slope, with gains of close to 150%. Nine shares are currently within a whisker of reaching their record high of $3.16.

Nine has a market capitalisation of around $5.1 billion, with approximately 1.7 billion shares issued.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Nine (ASX:NEC) share price edges higher on positive update appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!