The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price has been surging in 2021. Shares in the Aussie entertainment group have climbed higher amid surging profits and a change in leadership.
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Why is the Nine share price climbing?
Nine has continued its strong gains from 2020 into the new year. That comes on the back of a number of factors including a price target upgrade to $3.80 per share from Macquarie Group Ltd (ASX: MQG) analysts.
Another big factor was Nine's half-year financial results on February 24. Nine more than doubled the prior corresponding period's (pcp's) net profit after tax, climbing from $87.3 million to $181.9 million.
That came despite a 3% drop in revenue from continuing operations, while earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations jumped 42%.
The media group also maintained its interim dividend at 5 cents per share in good news for investors. That decision came on the back of strong group performance throughout the coronavirus pandemic.
More certainty around the company's leadership team has also helped push the Nine share price higher. Nine shares jumped higher as Stan CEO Mike Sneesby was unveiled as the next Nine CEO.
The latest update follows the well-publicised resignation of current CEO Hugh Marks who is due to be replaced by Mr Sneesby on 1 April 2021.
The Nine share price has now climbed 25.9% higher to $2.92 per share in 2021. That means the company's shares have now jumped 124.6% in the last 12 months.
Nine has also been busy negotiating with tech giants Alphabet Inc (NASDAQ: GOOG) and Facebook Inc (NASDAQ: FB).
That includes a $30 million deal with Google-parent Alphabet, which has alleviated concerns around lost revenue from changing media laws.
Foolish takeaway
The Nine share price has been soaring higher in 2021 and is a top performer amongst the S&P/ASX 200 Index (ASX: XJO). Shares in the Aussie media group have been boosted by new media deals, strong earnings and leadership changes.
