Entertainment company Nine has reported a drop in post-tax profit to $190 million compared to the same time last year.
Its results for the six months ended December released on Thursday showed a decline of 16 per cent from $225m in the first half of fiscal 2022.
But revenue rose by $70.4m or five per cent over the same period to $1.4 billion.
The company's interim earnings before interest, tax, depreciation and amortisation came in at $370m, a drop of nine per cent from record highs.
While it was under the $380m to $400m predicted in an upbeat assessment at the company's annual general meeting in November, it was in line with updated guidance issued in December.
Looking ahead, CEO Mike Sneesby said Nine had started the 2023 calendar year with "great momentum", despite a broadly softer economic environment.
Nine previously notched up record profit for 2021/22 and announced it would buy back up to 10 per cent of its shares.
It recently secured the broadcast rights for the next five Olympic Games, culminating in Brisbane 2032.
Revenue in Nine's broadcast division grew five per cent to $715m but costs climbed by 12 per cent.
It was a similar story for streaming service Stan, with revenue climbing 12 per cent to $206m, outpaced by costs growing 17 per cent to $188m.
Stan's original shows performed well over the summer, Mr Sneesby said, with almost 2.6 million active subscribers and expectations of securing more licensed content on the international market.
"We're very happy with how that's playing out for us," he said.
But the company is considering making some of its original content offshore due to rising production costs in Australia.
Government requirements to increase local production could also have unintended negative consequences, Mr Sneesby told investors.
"I don't think that's the preferred or desired outcome," he said.
Nine's subscription revenues grew by about nine per cent over the half, not including its real estate site Domain.
Radio stations owned by Nine also improved revenue share, including growth in digital radio revenues of 122 per cent.
The company is diversifying its earnings base away from advertising, now that it has to compete with Facebook, Google, YouTube and Instagram, rather than just other Australian media outlets.
Earnings per share fell 14 per cent to 10.8 cents.
Nine shares lost some ground on the results to trade just below $2.
The company will pay a dividend of six cents per share fully franked.
