Domain Sale Puts Nine’s Dividend Strategy and Digital Future in Focus
Nine Entertainment Co. Holdings Limited reported a modest dip in FY25 net profit to $133.3 million amid rising costs, while announcing a substantial special dividend tied to the imminent sale of its Domain stake.
- FY25 net profit after tax of $133.3 million, down 1%
- Revenue up 2% to $2.69 billion despite advertising market softness
- EBITDA before specific items declined 6% to $486.1 million
- Special fully franked dividend of 49.0 cents per share contingent on Domain sale
- Sale of 60% stake in Domain to CoStar approved post-year-end for A$1.65 billion
Financial Performance and Dividend Announcement
Nine Entertainment Co. Holdings Limited has released its financial results for the year ended 30 June 2025, reporting a net profit after tax of $133.3 million, a slight 1% decrease from the prior year’s $134.9 million. Revenue grew by 2% to $2.69 billion, buoyed by strong audience engagement across streaming and broadcast platforms, as well as growth in digital subscriptions within its publishing division.
Despite the revenue increase, EBITDA before specific items fell 6% to $486.1 million, reflecting higher content acquisition costs, including the Paris Olympics and Australian Open rights, and increased operational and technology expenses. The company’s disciplined cost management under its Nine2028 strategic transformation program delivered over $80 million in efficiencies, exceeding initial targets.
In line with these results, Nine declared a fully franked final dividend of 4.0 cents per share payable in September 2025. More notably, the board announced a special fully franked dividend of 49.0 cents per share, amounting to approximately $777 million, contingent upon the completion of the sale of its 60% stake in Domain Holdings Australia Limited.
Domain Sale and Capital Return
Post-year-end, shareholders approved the sale of Domain to US-based CoStar Group for A$4.34 per share, with Nine’s proceeds expected to total A$1.65 billion. The transaction, effective August 2025, marks a significant capital event for Nine, enabling a substantial return of capital to shareholders and strengthening the company’s balance sheet.
Domain’s contribution to Nine’s revenue and EBITDA was $413 million and $146 million respectively in FY25, with the sale reflecting a 60% premium to Domain’s undisturbed share price. The special dividend reflects the board’s commitment to returning excess capital while positioning Nine to focus on its core media and digital businesses.
Strategic Transformation and Market Position
Under new CEO Matthew Stanton, appointed in March 2025, Nine is accelerating its digital transformation and strategic realignment. The Nine2028 program is driving growth across streaming, publishing, and marketplaces, with digital revenue now representing 51% of total revenue, up from 43% in FY22.
The company’s broadcast division saw audience growth despite a challenging advertising market, with streaming revenues from 9Now up 19%. Stan, Nine’s subscription video-on-demand service, reported 31% EBITDA growth, supported by subscriber and ARPU increases. Publishing revenues declined 6%, impacted by advertising softness and the cessation of certain licensing deals, but digital subscriptions grew strongly.
Governance, Remuneration and Risks
Nine’s remuneration framework aligns executive pay with performance, with the CEO’s total remuneration reflecting the company’s strategic progress and cost efficiencies. The board continues to focus on cultural transformation and leadership accountability following an independent review and the implementation of a Culture Action Plan.
Risks remain from advertising market volatility, regulatory changes, and technological disruption, including the evolving use of AI. However, Nine’s diversified portfolio, premium content focus, and unique data assets provide a strong foundation for sustainable growth.
Bottom Line?
With the Domain sale unlocking significant capital, Nine’s next challenge will be executing its digital-first strategy while navigating a shifting media landscape.
Questions in the middle?
- How will Nine deploy the proceeds from the Domain sale to drive future growth?
- What impact will the advertising market softness have on Nine’s core broadcast and publishing revenues?
- How effectively can Nine sustain digital subscriber growth amid intensifying competition?