Nine Entertainment’s board is under increasing pressure over the company’s poor internal culture and gambling problems.
At Channel Nine’s biggest annual general meeting yet, the board faced questions from shareholders over an assessment of its culture, the harm caused by gambling and falling advertising revenue.
Nine’s board took the lead in addressing cultural issues before shareholders for the first time since publishing an internal report into its conduct.
Individual complaints from Nine Entertainment employees are being investigated, while other staff have hired lawyers after an independent report found the media company’s toxic corporate culture led them to suffer sexual harassment and bullying.
“Given the important role we play in our communities, we must continually strive to create an environment built on integrity. We want to ensure our workplace is built on a culture of respect, safety and inclusion where our employees can thrive,” said Nine President Catherine West.
“As an organization, we must also be ready to tackle challenging problems, which is why,
This year, the Board unanimously supported the creation of an independent review body
nine workplaces. The review was conducted by organisational culture experts Intersection.”
Nine’s board faces questions about its culture. Picture: AAP Image/Ellen Smith
The report found those in power at Channel Nine’s broadcasting division belittled, intimidated, lied to and sexually harassed staff, and that human resources would not help them when complaints were made about management.
The review is based on 934 employee survey responses and 122 face-to-face interviews and written submissions.
Ms West said: “As a board and management team we are completely united in changing behaviours so that all our employees have a safe workplace.
Gambling Harm
Shareholders have harshly criticised Channel Nine’s gambling ads, saying its constant reminders put more pressure on abstainers who just want to watch sport.
Shareholders say 72 per cent of Australians want a total ban on gambling advertising, but Channel Nine has been lobbying against such a ban.
One shareholder said: “They want their children to play sports without being tempted by gambling.
“We are very aware of our responsibility to the community,” Ms West said.
She said the main purpose of gambling advertising was to help finance increasingly expensive sports events to be televised. She said that rather than banning gambling advertising outright, fair rules should be put in place.
Investors also questioned Nine’s gambling risks.
“Our position with the government is to reduce the number of gambling adverts we can show, but if our ads are restricted we should be treated fairly. If gambling ads are banned on our platforms then that should extend to social media companies and Google, so we are advocating fairness,” Ms West said.
Ahead of the annual general meeting, protesters from the Gambling Reform Alliance said the network should do more to prevent gambling addiction.
“The evidence shows that every gambling ad is dangerous and entices people, especially children, into gambling. We banned tobacco ads decades ago and we must ban gambling ads today,” said Chief Advocate Tim Costello.
Market performance
Nine has grown its audience across its platforms. The company said it had seen growth in live viewership across free-to-air TV and streaming services after years of audience fragmentation.
The report states that Stan’s customer base has surpassed 2 million, largely due to the Paris Olympic and Paralympic Games.
The company reported FY24 revenues of $2.6 billion and EBITDA of $517 million, down 12% from FY23 due to a weak TV advertising market.
Net profit after tax was $190 million, reflecting the pressures within the industry.