Mike Sneesby will step down as CEO of Nine Entertainment effective 30 September. The announcement on Thursday indicated that Matt Stanton, the chief finance and strategy officer, would serve as interim CEO starting from 1 October.
Following this news, the company’s shares plummeted by as much as 4.4%, reaching their lowest point since April 2020. This drop occurred despite the benchmark stock index rising by 0.6% by 12:37 GMT. Stanton, who joined Nine in August 2023, previously held the role of chief transformation officer at Woolworths, a leading Australian grocery chain.
Darren Leung, a senior research analyst at Macquarie Securities, noted that additional CEO responsibilities could potentially impede Stanton’s focus on cost-cutting measures necessary to maintain profits in the fiscal year 2025. Nine’s recent annual results revealed a 22% decrease in net profit after tax and a 3% drop in revenue.
His resignation comes at a critical time for the media giant, which is conducting a review into workplace culture while juggling a decline in advertising. https://t.co/VfigcXrgJb
— Financial Review (@FinancialReview) September 11, 2024
Sneesby, who became CEO in April 2021, has seen the company’s share price fall by over 55% by the close of trading on Wednesday. This leadership change follows the resignation of chairman Peter Costello and the appointment of Catherine West as non-executive deputy chair. Nine Entertainment plans to initiate a recruitment process to find a new permanent CEO.
What Other Media Are Saying
- The Australian reports that Mike Sneesby has stood down as CEO of Nine, ending his tenure amid ongoing controversies over company culture and employee relations.(read more)
- ABC News reports Mike Sneesby’s decision to step down as Nine Entertainment’s chief executive, citing the “right time for transition of leadership,” with Matt Stanton to act until a new CEO is appointed.(read more)
Frequently Asked Questions
Here are some common questions asked about this news
When is Mike Sneesby stepping down as CEO?
Mike Sneesby is stepping down on September 30.
Who will be the acting CEO of Nine Entertainment?
Matt Stanton will be the acting CEO from October 1.
How did Nine Entertainment’s shares react to the CEO news?
Shares fell as much as 4.4%, hitting their lowest level since April 27, 2020.
What role did Matt Stanton hold before becoming acting CEO?
He was the chief finance and strategy officer.
Why is the CEO change significant for Nine Entertainment?
It follows a 22% fall in net profit and a 3% revenue decline.