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Nine Entertainment Co. Holdings (ASX:NEC) Operating Margin % : 8.28% (As of Dec. 2023)


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What is Nine Entertainment Co. Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Nine Entertainment Co. Holdings's Operating Income for the six months ended in Dec. 2023 was A$114 Mil. Nine Entertainment Co. Holdings's Revenue for the six months ended in Dec. 2023 was A$1,371 Mil. Therefore, Nine Entertainment Co. Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was 8.28%.

The historical rank and industry rank for Nine Entertainment Co. Holdings's Operating Margin % or its related term are showing as below:

ASX:NEC' s Operating Margin % Range Over the Past 10 Years
Min: -51.32   Med: 5.82   Max: 12.32
Current: 2.57


ASX:NEC's Operating Margin % is ranked worse than
52.51% of 1036 companies
in the Media - Diversified industry
Industry Median: 3.27 vs ASX:NEC: 2.57

Nine Entertainment Co. Holdings's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Nine Entertainment Co. Holdings's Operating Income for the six months ended in Dec. 2023 was A$114 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$68 Mil.


Nine Entertainment Co. Holdings Operating Margin % Historical Data

The historical data trend for Nine Entertainment Co. Holdings's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Nine Entertainment Co. Holdings Operating Margin % Chart

Nine Entertainment Co. Holdings Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.91 -28.65 5.77 11.99 5.87

Nine Entertainment Co. Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.72 6.35 14.49 -3.50 8.28

Competitive Comparison of Nine Entertainment Co. Holdings's Operating Margin %

For the Entertainment subindustry, Nine Entertainment Co. Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nine Entertainment Co. Holdings's Operating Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Nine Entertainment Co. Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Nine Entertainment Co. Holdings's Operating Margin % falls into.



Nine Entertainment Co. Holdings Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Nine Entertainment Co. Holdings's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=158.092 / 2694.602
=5.87 %

Nine Entertainment Co. Holdings's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=113.566 / 1371.33
=8.28 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Nine Entertainment Co. Holdings  (ASX:NEC) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Nine Entertainment Co. Holdings Operating Margin % Related Terms

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Nine Entertainment Co. Holdings (ASX:NEC) Business Description

Traded in Other Exchanges
Address
1 Denison Street, Level 9, North Sydney, Sydney, NSW, AUS, 2060
Nine Entertainment operates Nine Network, a free-to-air TV network across five capital cities, as well as in regional Northern New South Wales and Darwin. It also owns 9Now, a leading broadcast video on demand operation in Australia. The merger with Fairfax combines Nine's top-ranked TV network and the second-largest newspaper group, topped with a collection of quality digital assets in Nine Digital, subscription video on demand operator Stan, and Fairfax's 60%-owned Domain. It ensures the merged entity remains prominent in the eyes of audiences and advertisers.

Nine Entertainment Co. Holdings (ASX:NEC) Headlines

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