Stuff revenue down 10pc and operating profit falls in 'challenging market'

Thursday, 22 August 2019

The NZ market remains challenging, Stuff owner Nine says.

Stuff's operating profit fell 24 per cent to A$28 million (NZ$30m) and its revenues fell 10 per cent to A$243m in the year to June, according to results released by Australian parent Nine.

It said the market in New Zealand remained challenging.

Nine itself posted a 12 per cent rise in its annual profit to A$234m, with revenues jumping 40 per cent to A$1.8b on the back of its acquisition in December of former Stuff-owner Fairfax Media.

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Nine chief executive Hugh Marks put Stuff on the block in January but indicated in June that its focus had switched to working out how to better run the business for the longer-term, after it did not receive a tempting offer.

Nine said Stuff remained classed on its books as an asset 'held for sale, albeit the group is exploring a number of profit improvement initiatives in parallel with this sale process'.

The Australian reported speculation this week that Stuff rival NZME had approached the Government to gauge its willingness to help revive the idea of a merger between NZME and Stuff.

Stuff chief executive Sinead Boucher said such a plan was not on its agenda.

Ardern said she not been approached by NZME but Broadcasting Minister Kris Faafoi declined to issue a similar assurance.

Commenting on Nine's result, Marks said a 10 per cent growth in operating profit was a strong result, given the 'cyclically challenging' nature of the markets to which the company was exposed.