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ASX 200 investors are hitting the sell button today as Nine Entertainment Co. Holdings Ltd (ASX:NEC) experiences a sharp decline in its share price. After closing yesterday at AU$1.25, the media and entertainment company’s shares have fallen to AU$1.205 in morning trade, marking a 3.2% drop. This decline contrasts with the broader ASX 200 index, which is up 0.7% at the same time.
The latest slide in Nine Entertainment’s stock comes in the wake of a significant leadership change. The company announced that Mike Sneesby, its CEO since April 2021, will step down from his role and resign from the Nine board on September 30. Sneesby’s departure follows the exit of Chairman Peter Costello just three months earlier, adding to the turbulence at the top of the organization.
During Sneesby’s tenure, Nine Entertainment faced numerous challenges, including a steep decline in advertising revenues. Despite his efforts, the company’s share price has plummeted by over 50% since he took charge. The most recent financial results, reported on August 28, reveal a 2% year-on-year decline in revenue to AU$2.62 billion, with net profit after tax (NPAT) falling by 22% to AU$216 million. However, there was some positive news with growth in total television audiences, which could signal a more promising revenue outlook for FY 2025.
The company has stated that the recent successful coverage of the Olympics and Paralympics provides a fitting backdrop for a leadership transition. As Nine begins the search for a new CEO, Matt Stanton, the chief finance and strategy officer, will assume the role of acting CEO starting October 1.
Nine’s Chair, Catherine West, praised Sneesby for his achievements, including navigating the company through the COVID-19 pandemic, securing Olympic Games rights through 2032, and advancing the strategic transformation of Nine. West also highlighted Sneesby’s role in building Stan, a successful streaming service with over two million subscribers.
Sneesby himself expressed confidence in Nine’s future, stating, “It has been a privilege to lead this business, but now is the right time to hand over to a new leader.” He reassured stakeholders of a smooth transition and remained committed to Nine’s ongoing success.
The day’s losses mean Nine Entertainment’s stock is down 41% for the year, reflecting ongoing investor concerns amidst the leadership changes.
