Lifting Nine's Fair Value Estimate by 11% to AUD 2.00 on Faster Advertising Recovery

Amid the COVID-19-induced uncertainty, we are encouraged by Nine's progress on factors within its control. The balance sheet is well-equipped to weather the current turmoil. Critically, management is not letting a good crisis go to waste. It has already committed to cutting significant near-term costs in response to COVID-19 (operating and capital expenditures). In addition, it has stepped up efforts on the previously flagged three-year AUD 150 million structural cost-out initiative and is now targeting AUD 230 million by the end of fiscal 2024.