Bruce Gordon lifts Nine economic interest to 31.18 per cent

WIN Group owner Bruce Gordon has increased his exposure to Nine Entertainment again, with Birketu acquiring another 47 million Nine shares on market.

READ MORE: EXCLUSIVE: Former Seven executive slams NBN News cuts

READ MORE: No penalty after Bruce Gordon breached media control and diversity rules

The transaction lifts the WIN Group’s aggregate economic interest in Nine from 28.22 per cent to 31.18 per cent. Its voting power has increased from 22.98 per cent to 25.94 per cent.

What changed in Gordon’s Nine holding

The latest purchase extends a series of moves by Gordon to build his position in Nine. In April, the WIN Group’s economic interest reached 28.22 per cent, while its voting power remained at 22.98 per cent.

Earlier, a February disclosure showed WIN’s voting power climbing from 19.98 per cent to 22.98 per cent. Its economic interest was then 25.22 per cent.

The difference between the two figures reflects Birketu’s use of equity swaps as part of its exposure to Nine. Previous disclosures said some cash-settled swaps did not give Birketu voting control over the underlying Nine shares.

Nine shares closed at $1 on Thursday, up 4.17 per cent for the session. The stock remains below its 52-week high of $1.28.

WIN and Nine are increasingly intertwined

Gordon is Nine’s largest shareholder, but the relationship between WIN and Nine extends beyond the share register.

In June, Nine completed the $20.5 million sale of its NBN and Nine Darwin regional television businesses to WIN. The stations became affiliates, with WIN continuing to broadcast Nine programming across Northern NSW and Darwin.

Nine said the arrangement allowed it to retain national reach and advertising scale while reducing the cost and complexity of operating regional broadcast infrastructure.

WIN Corporation and Birketu chief executive Andrew Lancaster also sits on the Nine board as a non-independent non-executive director.

WIN chief financial and operating officer Chris Halios-Lewis is another non-independent non-executive director of Nine.

Nine reshapes its media portfolio

Gordon’s increased position comes as Nine pushes through a significant reshaping of its media portfolio, including the acquisition of QMS Media and the divestment of regional television, radio and other assets.

For the year to June, Nine reported continuing-business revenue of $2.189 billion, up 3 per cent. Net profit after tax increased 7 per cent to $142.4 million.

However, Total Television revenue fell 9 per cent to $1.027 billion. EBITDA for the division declined 12 per cent to $133.5 million as the free-to-air advertising market remained challenging.

Nine also recorded a $404 million after-tax impairment against its Total Television business, reflecting current conditions in the free-to-air advertising market. A further $22.5 million was recorded in content-specific provisions.

The company is increasingly weighting its portfolio towards streaming, outdoor and digital publishing. Nine expects those growth businesses to contribute more than 60 per cent of revenue in FY27.