Nine Entertainment chief executive Mike Sneesby will depart the company at the end of September after 3½ years in the role, after what he described as one of the most challenging years of his career.
Sneesby's departure comes amidst a period of significant turmoil for the media giant, which has been grappling with allegations of predatory behavior and bullying in its newsrooms, a significant drop in share price, and a company-wide review into workplace culture. The company informed the ASX on Thursday morning that Sneesby will step down as chief executive and a director of the board, with chief financial officer Matt Stanton appointed interim chief executive. The board will begin a global search for a successor.
Sneesby's departure comes at a time when Nine is facing significant financial headwinds. The company's share price has lost 57 per cent since the start of Sneesby's tenure, and its market capitalisation fell below $2 billion this week. Nine's share price has suffered similarly to other media stocks due to prevailing market conditions, and is down 38 per cent across the year to date, closing at $1.24 on Wednesday.
The company's full-year results, delivered two weeks ago, revealed a 31 per cent dip in profits, while revenues also fell 3 per cent. Executive bonuses were cut after the group failed to hit its EBITDA target of $533 million set by Nine’s board. These financial struggles have coincided with a series of cost-cutting measures that have seen Nine shed hundreds of jobs across its various divisions, including its publishing arm.
The company's workplace culture has also come under scrutiny in recent months. In March, the company’s former head of news and current affairs, Darren Wick, abruptly left Nine following complaints of sexual harassment and inappropriate behaviour. In June, Nine's long-standing chair, Peter Costello, resigned after he allegedly pushed over a News Corp journalist at Canberra Airport while being questioned about Sneesby's knowledge of the allegations against Wick. These incidents led to the first staff strike in Nine's history, with publishing staff walking off the job for five days in July after negotiations for a new enterprise bargaining agreement stalled.
The company has commissioned an independent review into its workplace culture, which is expected to be delivered at the end of October. This report was instigated after staff unrest prompted by sexual harassment allegations levelled against Nine’s former head of news and current affairs Darren Wick. Nine’s management has been criticised for not acting more swiftly to remove Wick after a number of complaints, along with the handling of his exit.
Sneesby's departure is a significant moment for Nine Entertainment, and it will be interesting to see how the company navigates the challenges ahead. The new CEO will have to address the company's financial woes, rebuild trust in the company's leadership, and ensure that Nine is able to compete in the increasingly challenging media landscape.
Challenges Ahead: Navigating the Shifting Media Landscape
The challenges facing the new CEO are manifold and complex, spanning from navigating the evolving media landscape to restoring confidence in the company's leadership. The media industry is facing a perfect storm of pressures, including declining advertising revenue, the rise of streaming services, and the growing influence of social media. These factors have put pressure on traditional media companies like Nine to adapt and innovate, and the new CEO will need to have a clear vision for the future of the company.
Rebuilding Trust: Addressing Workplace Culture Issues
In addition to the financial challenges, the new CEO will need to address the company's cultural issues and rebuild trust in its leadership. The allegations of predatory behaviour and bullying have damaged the company's reputation, and the new CEO will need to demonstrate a commitment to creating a safe and inclusive workplace. This will require a comprehensive plan that includes accountability, transparency, and a genuine commitment to change.
The Future of Nine: A New Era of Leadership
The departure of Mike Sneesby marks a turning point for Nine Entertainment. The company is at a crossroads, facing both financial and cultural challenges. The new CEO will need to be a strong leader with a vision for the future, a commitment to change, and the ability to navigate the increasingly complex media landscape. The success of Nine in the years to come will depend on the ability of the new leadership to address these challenges and restore the company to its former glory.
