Nine’s Q3 TV Ad Revenue Climbs Nearly 8%, Eyes $1.4B Domain Stake Sale

Robust Content and Advertising Performance

Nine Entertainment Co. Holdings Limited (ASX: NEC) has delivered a strong trading update for the March quarter of FY25, highlighting continued momentum in its core content and advertising businesses. The company reported an almost 8% increase in total TV advertising revenue year-on-year, driven by popular programming such as "Married At First Sight" and the return of the NRL season, which boosted audience engagement across free-to-air (FTA) and broadcast video on demand (BVOD) platforms.

Despite a marginally down FTA market, Nine’s gains in revenue share and BVOD growth underscore its ability to capture advertising dollars amid a competitive landscape. However, the company cautions that economic and market uncertainties, including the post-election advertising uplift, may temper the outlook for the remainder of the financial year.

Streaming and Publishing: Growth and Stability

Stan, Nine’s streaming service, continues to impress with expectations that second half EBITDA growth will surpass the 16% increase recorded in the first half. This signals strong subscriber engagement and effective monetisation strategies in a crowded streaming market.

Meanwhile, Nine’s publishing division anticipates second half EBITDA to remain broadly in line with the first half. This stability is underpinned by a 14% rise in digital subscription revenue in Q3 and a more favourable cost outlook, which together offset the seasonal advertising fluctuations typical in publishing.

Radio and Digital Revenue Dynamics

The radio segment faced headwinds with broadcast advertising revenues declining in the low double digits during Q3. However, this was partially mitigated by robust digital revenue growth exceeding 20%, reflecting Nine’s ongoing digital transformation and diversification of revenue streams.

Cost Efficiencies and Strategic Investment

In line with its efficiency agenda, Nine reaffirmed its commitment to delivering over $100 million in cost savings through FY27, including $10-20 million targeted for FY25. These savings are expected to support the company’s investment in technology, content, and strategic growth initiatives without increasing overall costs, which are forecast to remain flat excluding Olympic-related expenses.

Domain Sale and Capital Management

A significant highlight of the update is the ongoing due diligence process with CoStar regarding a non-binding proposal to acquire 100% of Domain, Nine’s real estate marketplace. The proposal includes the sale of a 60% stake at a 60% premium to the 60-day volume weighted average price, valuing Domain at approximately 20.6 times EBITDA. Completion could yield net proceeds of around $1.4 billion after tax, along with $270 million in incremental franking credits, strengthening Nine’s balance sheet and enabling disciplined capital management and strategic investments.

While the due diligence period has been extended to 12 May, Nine has paused further trading updates on Domain until the process concludes, leaving investors eager for clarity on this transformative transaction.

Innovation and Integrated Audience Strategy

Beyond financial metrics, Nine is advancing its integrated audience platform strategy, leveraging AI and technology consolidation to enhance consumer experiences and advertising effectiveness. This approach aims to unify streaming, broadcast, publishing, and marketplaces under a single technology stack, driving both revenue growth and operational efficiencies. The company’s focus on personalisation, data-driven advertising, and content innovation positions it well to compete against global digital platforms.