Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Nine CEO gets pay rise despite annual loss

Christian Edwards  |  03 Oct 2017Text size  Decrease  Increase  |  
Email to Friend

Page 1 of 1

SYDNEY - [AAP] Nine Entertainment (ASX: NEC) has rewarded ratings over revenue, with chief executive Hugh Marks awarded 70 per cent of his cash bonuses despite the broadcaster making a $203 million annual loss.

Mr Marks took home $2.77 million in the year to June 30, including a salary of $1.38 million, cash bonuses of $895,000, and shares worth almost $450,000.

He was paid $1.14 million in the previous financial year, in which he was CEO for eight months.

Nine's revenue dropped 3 per cent in 2016/17, and writedowns on assets including its TV network contributed to its loss for the year, while earnings rose 2 per cent.

Media analyst and Fusion Strategy managing director Steve Allen said Nine's executive team had their bonuses aligned with the company's market share, ratings and share price performance.

Nine shares rose 31 per cent in the 2016/17 financial year.

"In a shrinking media market, ratings and revenue share would feature strongly--and in those (Mr Marks) is delivering," Mr Allen said.

Bonuses for Mr Marks were also related to his performance in improving supplementary revenue streams and content production.

Nine's leadership in the key 25-54 age demographic has been enhanced by the success of productions like True Story with Hamish and Andy, and helped build its 9Now catch up service, which boasts 4.3 million registered users.

Subscribers for Nine's on demand joint-venture, Stan, have also grown by 50 per cent.

Despite Nine's market leading position, Mr Allen suggested its robust remuneration packages would eventually attract investor scrutiny.

"Nine's board and executives seem to be doing a good deal better than shareholders and sooner or later they will be held to account," Mr Allen said.

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend