Nine’s $850m QMS Acquisition to Boost Digital Revenue Beyond 60% by FY27

Strategic Shift Towards Digital Growth

Nine Entertainment Co. has announced a significant repositioning of its asset portfolio, marking a decisive pivot towards digital media growth and diversification. Central to this transformation is the acquisition of QMS Media, a leading digital outdoor advertising platform, for A$850 million. This move complements Nine’s existing streaming, broadcast, and publishing assets, reinforcing its cross-platform advertising proposition.

QMS, with a strong presence in Australia and New Zealand, boasts a predominantly digital revenue base; around 95% of its Australian income derives from digital formats, well ahead of the national average. The outdoor advertising sector itself has been a standout performer, growing at approximately 9% annually over the past decade and expanding its market share significantly. Nine’s acquisition positions it to capitalise on this momentum, with QMS expected to deliver an EBITDA of about A$105 million in CY26 and offer attractive growth prospects.

Portfolio Optimisation – Radio Sale and Regional TV Affiliate Deal

In tandem with the QMS acquisition, Nine is divesting its traditional broadcast radio assets to the Laundy Family Office for A$56 million. This sale aligns with Nine’s strategy to reduce exposure to legacy broadcast formats and focus on digital audio opportunities such as podcasts and vodcasts. Despite the sale, Nine plans to maintain a strategic partnership with Laundy, leveraging synergies in advertising, news, and sport content.

Additionally, Nine is converting its regional television station NBN in Northern NSW from a wholly owned business to an affiliate operated by WIN Network. This move allows Nine to concentrate on metropolitan markets and digital growth while maintaining regional presence through a trusted partner. The transaction includes a cash consideration of A$15 million and is expected to have a modest EBITDA impact.

Financial Implications and Future Outlook

The combined transactions represent a net investment of approximately A$601 million after factoring in cash tax benefits estimated at A$178 million, which help offset prior capital gains tax liabilities related to the Domain sale. Nine anticipates these initiatives will be marginally accretive to earnings per share in FY26 before synergies, and deliver low double-digit EPS accretion including cost synergies by FY29.

Cost synergies of around A$20 million are expected by FY29, driven by back-office consolidation, procurement efficiencies, and marketing spend optimisation. While Nine’s net leverage ratio will temporarily rise to about 1.8 times EBITDA in FY26, it is forecast to return to the company’s target range of 1.0 to 1.5 times by the end of FY27, supported by enhanced earnings and tax benefits.

However, the realisation of tax losses will reduce available franking credits, meaning upcoming dividends are expected to be unfranked, a factor investors will want to consider. Overall, Nine’s CEO Matt Stanton emphasises that these moves position the company as a digitally focused, structurally growing media business, well placed to navigate industry disruption and deliver sustainable shareholder value.