Nine Entertainment Posts $2.7B Revenue, $133M Profit, and $1.4B Domain Windfall

• FY25 revenue of $2.7 billion and net profit after tax of $133 million
• Group EBITDA before specific items down 6%, but second half EBITDA up 8%
• Streaming, broadcast TV, and publishing audiences grew, with digital subscriptions up 10%
• Sale of 60% stake in Domain for $1.4 billion net proceeds, leading to a special dividend
• Cost efficiencies of $80 million delivered, with $90 million more committed through FY27

Nine’s FY25 Financial Performance

Nine Entertainment Co. Holdings Limited (ASX, NEC) closed FY25 with a revenue tally of $2.7 billion and a net profit after tax of $133 million, which included $61 million in post-tax specific items. While group EBITDA before these specific items declined 6% to $486 million compared to FY24, the second half of the year showed encouraging momentum with an 8% EBITDA increase, signalling a positive turnaround in the latter months.

The company’s diversified media portfolio demonstrated resilience amid a challenging advertising market, with streaming, broadcast television, and publishing segments all contributing to audience growth. Notably, digital subscription revenues rose by 10%, underscoring the successful pivot towards monetising digital platforms.

Strategic Milestone, Domain Sale

A defining moment for Nine this year was the sale of its 60% stake in Domain to CoStar Group Inc., netting $1.4 billion after tax. This transaction, executed at a 60% premium to the 60-day volume weighted average price, crystallised significant shareholder value and provided substantial capital to strengthen Nine’s balance sheet. The proceeds facilitated a special fully franked dividend of 49 cents per share, alongside a final dividend of 4 cents per share, both payable in late September 2025.

Chair Catherine West emphasised that divesting Domain allows Nine to sharpen its focus on core media assets where it holds competitive advantages, while continuing to explore marketplace opportunities through other ventures like Drive.

Operational Highlights and Cost Efficiencies

Audience engagement remains a cornerstone of Nine’s strategy, with the company capturing approximately 20% of Australian TV screen time, leading the market. The company’s Olympic Games coverage was both profitable and cash flow positive, showcasing the strength of its integrated audience platform.

Cost management was another highlight, with $80 million in cost efficiencies realised during FY25 and a further $90 million committed, targeting a total annualised saving of $150 million by FY27. These savings helped offset increased sports rights costs and investments in premium content and technology.

Segment Performance and Outlook

Streaming service Stan posted a 10% revenue increase and a record 31% EBITDA growth, buoyed by strong subscriber gains and premium content offerings. Broadcast TV revenues remained broadly flat despite a soft metro advertising market, supported by audience growth and key events like the Federal Election.

Publishing revenues declined 6%, impacted by the withdrawal of Meta advertising revenues and softer print advertising, but digital subscriptions grew robustly, with subscriber numbers surpassing 510,000. Audio revenues were stable, with digital audio streaming growing 31%, offsetting declines in traditional radio advertising.

Looking ahead, Nine expects continued EBITDA growth in the first half of FY26, driven by digital and subscription assets, although visibility on the advertising market in the second half remains limited. The company plans to maintain its strategic transformation under the Nine 2028 program, focusing on organic growth and leveraging its integrated content and data platform.

Bottom Line?

With Domain’s sale boosting capital and streaming momentum building, Nine is poised for growth, but cautious advertising market conditions warrant close watch.

Questions in the middle?

• How will Nine reinvest proceeds from the Domain sale to accelerate growth in streaming and marketplaces?
• What impact will ongoing advertising market softness have on Nine’s broadcast and audio revenues in H2 FY26?
• Can Nine sustain its digital subscription growth amid increasing competition in the Australian media landscape?