Nine Entertainment management bonuses smashed as profit slumps

Falling profits at media group Nine Entertainment slashed chief executive Mike Sneesby’s take-home pay by nearly $600,000 last financial year.

The owner of the Nine TV network, the Australian Financial Review newspaper and Perth’s 6PR talk-back radio station, said on Wednesday its bottom-line annual earnings fell 31 per cent to $134.9 million in the year to June 30 on the back of “challenging economic and advertising market conditions”.

The result included $81.5m of one-off charges, mainly to cover asset write-downs and restructuring costs, including job cuts announced in May.

Group revenue was 3 per cent lower at $2.62 billion.

The weaker results hit Mr Sneesby and other senior bosses at Nine in the pocket, with the leadership missing out on maximum short and long-term term bonuses after the group undershot performance targets set for the year.

Despite higher fixed pay of $1.5m, Mr Sneesby’s total remuneration for the 2024 financial year fell $574,000 to $2.12m. The pay included $521,117 in bonuses, down from $1.28m previously and well short of the $2.375m on offer.

Nine said its broadcasting profit fell 32 per cent to $216.6m before interest, tax, depreciation and amortisation on revenue that shed 9 per cent to $1.23b.

The Olympics telecaster publishing division, led by the AFR, The Age and The Sydney Morning Herald newspapers, was also hurt by advertising softness, with profit down 7 per cent to $152.6m.

However, robust property market boosted the group’s Domain listings business, with earnings jumping 32 per cent to $136.2m on on a 13 per cent rise in revenue to $395.7m.

Nine said the new year had started well, with the group tipping 10 per cent growth in its metropolitan free-to-air TV revenues in the first quarter, aided by the Olympics.

It has also forecast more growth this year from its Stan streaming business, after a 26 per cent profit jump to $46m in the year to June 30.

Nine will pay a final dividend of 4.5¢ a share, fully franked.

The past year has been a tough one for Nine off air, with the group rocked by the sudden resignation of its chairman Peter Costello and scrutiny of its handling of historical complaints against former Channel Nine news and current affairs chief Darren Wick.

Mr Costello stepped down in June, just days after an altercation with a journalist at Canberra Airport.

Video taken by the journalist appeared to show him being shouldered by Mr Costello while asking him questions about the sexual harassment and bullying scandals plaguing Nine.

Mr Wick stepped down in March with a payout, but allegations of inappropriate behaviour targeting female staff at functions including Christmas parties have since emerged.

The company is conducting a review of the culture in its TV newsrooms.

In a separate statement shared with staff on Sunday by Mr Sneesby, Mr Costello said a new chair was needed at Nine “to unite them around a fresh vision and someone with the energy to lead to that vision for the next decade”.

“The new chair will require full support from all directors as this is an industry where there is fierce rivalry,” he said.

Ms West, a former lawyer with British broadcaster Sky, thanked Mr Costello for his service while acknowledging the past few weeks had been “extremely difficult and destabilising”. “We are committed to ensuring, through our cultural review and other actions announced last week, that issues will be appropriately addressed,” Ms West, pictured below, said.

“The board and management are united in focusing on the wellbeing of our people (and) acknowledge their responsibility to ensure all parts of our business, including our newsrooms, feel supported.

“We want to ensure our people can feel proud of our company and the work they do.”

Nine’s TV newsroom review is being handled by an outside firm. Its report will include advice on how the company could better handle workplace complaints in the future.

At the end of May, Mr Sneesby acknowledged “the distress and frustration” the reports of Mr Wick’s alleged misconduct had caused.

“I believe we have taken positive steps in recent years at Nine to improve our culture ... but the recent reports that detail alleged serious failings of leadership in television news clearly tells me more work needs to be done to ensure we have a safe and inclusive workplace throughout Nine,” he said.