Stan subscribers skyrocket as Nine launches buyback off record profits

Nine Entertainment Co.’s streaming service Stan has increased its active subscriber count for the 2022 financial year.

The platform, which offers a diverse range of programs from live sport to movies and TV shows, grew its subscribers by six per cent to more than 2.5 million users.

The rise in numbers increased the company’s revenue by 22 per cent.

Average subscribers to Stan’s new sports service, Stan Sport, rose more than 150 per cent higher in the June quarter compared to last year.

‘Nine’s strong competitive position and balance sheet stands us in good stead,’ said Nine CEO Mike Sneesby.

‘We have successfully diversified our earnings base with more than 30 per cent of our revenue now from subscription and licensing.

‘At Stan, we have continued to grow ARPU and revenues, and have remained clearly profitable, and cash flow positive, notwithstanding key investments in Sport, Events and Original content.

‘We expect any market softness will create opportunities for Nine to further strengthen its position as Australia’s Media Company.’

‘Nine’s strong competitive position and balance sheet stands us in good stead,’ said Nine CEO Mike Sneesby (pictured in March 2021)

The platform, which offers a diverse range of programs from live sport to movies and TV shows, grew its subscribers by six per cent to more than 2.5 million users. (Pictured: Zac Efron in the Stan Original movie Gold)

Stan’s original content includes shows like The Tourist (starring Jamie Dornan), Bump (featuring Claudia Karvan and Nathalie Morris), Wolf Like Me (starring Isla Fisher) and RuPaul’s Drag Race Down Under.

Its original movies include Gold, starring Zac Efron, and Christmas on the Farm. 

Earnings from the group’s digital division, which includes Stan, 9Now, Domain and several online mastheads, grew by 53 per cent during the full year, contributing to more than half the company’s total earnings.

Its publishing assets, including mastheads The Age and The Sydney Morning Herald, saw pre-tax earnings lift 53 per cent to $62million, with more than half of the revenues in this area also coming from digital.

That was a result of the company’s digital transformation strategy, which is tracking ahead of targets, said Nine chairman Peter Costello.

As for Nine’s television business, the company was named the No. 1 network and primary channel in all key demographics for the financial year.

RuPaul’s Drag Race Down Under (pictured) is a popular Stan Original Series

TV saw earnings growth of 19 per cent across linear and streaming to $61million.

The media company has notched up record profits for 2021/22 and will buy back up to 10 per cent of its shares.

Its statutory net profit reached $315million, up 71 per cent on the previous full year, off the back of a 15-per-cent increase in revenues to $2.7billion.

The statutory profit figure was weighed down, however, by $58million in extra costs, mostly due to a widespread restructure and expenses associated with Media House in Melbourne.

In a call to investors, Sneesby said Nine was expecting to deal with wage inflation, and a base wage increase of about three per cent.

Stan’s original content includes shows like The Tourist (starring Jamie Dornan), Bump (featuring Claudia Karvan and Nathalie Morris) and Wolf Like Me (starring Isla Fisher)

Isla Fisher’s Wolf Like Me has been confirmed for a second season

Nine’s broadcast division reported pre-tax earnings of $401million from revenues of $1.4billion, with pre-tax earnings from radio growing 81 per cent following a restructure.

Nine said a third of its radio audience was listening through digital devices.

Earlier this year, Stan unveiled its stunning new content slate, adding a sensational lineup of Stan Originals.

The streaming platform also announced a major partnership with renowned Hollywood studio Lionsgate.

Earlier this year, Stan unveiled its stunning new content slate, adding a sensational lineup of Stan Originals. (Pictured: Bump stars Claudia Karvan, Carlos Sanson Jnr and Nathalie Morris)