Stan subscribers skyrocket as Nine launches buyback off record profits

The streaming service Stan from Nine Entertainment Co. increased the number of active subscribers for fiscal year 2022.

The platform, which offers a wide variety of programming from live sports to movies and TV shows, grew six percent to more than 2.5 million users.

The increase in numbers increased the company’s revenue by 22 percent.

The average number of subscribers to Stan’s new sports service, Stan Sport, rose more than 150 percent in the June quarter from last year.

“Nine’s strong competitive position and balance sheet serve us well,” said Mike Sneesby, Nine’s CEO.

“We have successfully diversified our revenue base with more than 30 percent of our revenue from subscriptions and licenses.

“At Stan, we have continued to grow ARPU and revenues and have clearly maintained profitability and positive cash flow despite significant investments in sports, events and original content.

“We expect that any weak market will create opportunities for Nine to further strengthen its position as an Australian Media Company.”

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

The original films include Gold, starring Zac Efron, and Christmas on the Farm.

Revenues from the group’s digital division, which includes Stan, 9Now, Domain and several online mastheads, grew 53 percent for the full year, accounting for more than half of the company’s total revenue.

Its publishing business, which includes mastheads The Age and The Sydney Morning Herald, saw pre-tax profits jump 53 percent to $62 million, with more than half of its revenue in this area also coming from digital sources.

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

In Nine’s television business, the company was named the #1 network and primary channel in all major demographics for the fiscal year.

TV saw 19 percent earnings growth in linear and streaming to $61 million.

The media company has posted record profits for 2021/22 and will repurchase up to 10 percent of its shares.

Statutory net profit reached $315 million, up 71 percent from the prior full year, following a 15 percent increase in revenue to $2.7 billion.

However, the statutory profit figure was depressed by $58 million in additional costs, mainly due to widespread restructuring and costs related to Media House in Melbourne.

In an appeal to investors, Sneesby said Nine expected to deal with wage inflation and a base wage increase of about three percent.

Nine’s broadcasting division reported pre-tax profit of $401 million on revenue of $1.4 billion, with radio’s pre-tax profit growing 81 percent following a restructuring.

Nine said a third of the radio audience listened through digital devices.

Earlier this year, Stan unveiled his stunning new content, featuring a sensational lineup of Stan Originals.

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