Insights

Why is the Nine (ASX:NEC) share price on the rise today?

The Nine (ASX:NEC) share price is on the move today, up nearly 5%, after the company revised its trading outlook for the first half earnings.
The post Why is the Nine (ASX:NEC) share price on the rise today? 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 on the move this morning after the company released a revised trading update. At the time of writing, the Nine share price has surged 4.26% higher to $2.45 on news the company now expects its first-half earnings to come in at 40% growth, compared to the previous guidance of 30%.

What’s moving the Nine share price?

Investors are driving up the Nine share price after the company reported its trading outlook has improved since holding its annual general meeting (AGM) in mid November

Nine reported that, during the AGM, it advised expected first half earnings before interest, tax, depreciation, and ammortisation (EBITDA), before specific items, to be up by around 30%.

Since that time, Nine says trading conditions have continued to improve, with EBITDA before specific items for the six months to 31 December, now expected to be up by more than 40%, on the same basis. 

Of particular note, Nine’s December quarter is now expected to show growth in metropolitan free-to-air advertising revenue of almost 20% (previously around 15%). This means the company‘s metropolitan TV advertising revenues in the December half are now expected to be up by around 1% on the prior corresponding period. 

Nine also advised that, given limited visibility of the second half advertising market, it is not in a position to provide guidance on earnings for the full year. The company does, however, expect to be in a better position to address this at the half year results release in February. 

More about Nine Entertainment

Nine owns some of Australia’s well-known media brands including The Australian Financial Review, the Nine Network, and the Domain platform.

According to its financial report, Nine generates 90% of its earnings from its Nine Network channel – one of only three metropolitan television channels licensed to broadcast free-to-air in Australia. The total market for free-to-air advertising is $2.7 billion, of which Nine commands the number one position at 39%.

Analysts have said that this market is gradually dwindling as advertisers move to digital platforms. However, management said Nine’s investments in digital platforms such as 9Now, Stan, and Domain had gradually increased its market share in the fragmented digital market. This is where the company expects to derive its future growth.

The Nine share price performance in 2020

The Nine share price has been on the rise in 2020, gaining around 35%, after having fallen as low as 84 cents during the March crash. Nine shares reached a 52-week high of $2.59 in November. 

The company commands a market capitalisation of $4 billion.

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 June 30th

More reading

Motley Fool contributor Eddy Sunarto 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 Why is the Nine (ASX:NEC) share price on the rise today? 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!