Cost reductions:Nine Entertainment Co. Holdings Ltd (ASX: NEC) reported a 6% fall in group EBITDA to $120 million for H1FY17. Free to Air Television (FTA) EBITDA was down 9% to $109 million while Digital EBITDA was up 13% to $14 million. Group revenue was down 5% on account of 4.5% fall in FTA market and Olympics impact on ad market and share. Network revenues were down 5% while digital revenue was impacted by absence of DMA. NPAT from continuing businesses (pre-specific items) was at $75 million. Statutory results included specific items of $312 million after tax with a $260 million non-cash impairment of goodwill and about $85 million (pre-tax) settlement to exit key elements of the output deal with Warner Bros. Statutory net loss after tax, inclusive of specific items, was $236.9 million. The company has declared fully franked interim dividend of 4.5 cents. On the other hand, group’s diversifying efforts are intact which are expected to deliver the benefits in the long run. NEC has witnessed dominant ratings performance post Olympics and there has been improvement in ratings performance for the start of season 2017. The cost management efforts have also led to a group-wide cost reduction of 4%. Further, NEC has reported for 71% growth in registered users and 74% growth in catch up streams at 9Now across six months. Strong subscriber additions at Stan, especially over summer has been an additional highlight.
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