Nine Entertainment reports a 6% increase in Group EBITDA to $201 million and a 30% jump in net profit, driven by strong streaming and digital subscription growth amid strategic portfolio shifts.
- 6% growth in Group EBITDA to $201 million
- 30% increase in net profit after tax to $95.2 million
- Digital revenues surpass 50% of total, with 4% growth despite Olympic impact
- Strategic moves include QMS Media acquisition and sale of Nine Radio
- Cost reductions of $43 million, with $32 million recurring savings
Robust Financial Performance Amid Digital Transformation
Nine Entertainment Co. Holdings Limited has delivered a solid first half for fiscal year 2026, reporting a 6% increase in Group EBITDA to $201 million and a 30% rise in net profit after tax to $95.2 million on a continuing business basis. This performance excludes the recently divested Domain business, underscoring the strength of Nine’s core operations.
The company’s revenue stood at $1.1 billion, down 5% year-on-year, reflecting ongoing shifts in advertising markets and the impact of last year’s Olympic Games on comparatives. However, digital revenues grew by 4%, now accounting for over half of total revenues (excluding Domain, Radio, NBN, and Outdoor), highlighting Nine’s successful pivot towards digital platforms.
Streaming and Subscription Lead Growth
Stan, Nine’s streaming service, recorded a record result driven primarily by sports content, including the Premier League and Winter Olympics. Subscription revenue grew 13%, with Stan’s paying subscribers reaching approximately 2.4 million and average revenue per user increasing by 27%. Digital subscription growth at Nine’s mastheads more than offset declines in print advertising, supported by price rises and new product features.
Broadcast television revenues declined 14%, impacted by a soft advertising market, but EBITDA margins improved by 2.7 percentage points to 19.5%, reflecting disciplined cost management and operational efficiencies.
Strategic Portfolio Optimisation and Cost Efficiencies
Key strategic initiatives are underway, including the acquisition of QMS Media, a growing outdoor advertising business, and the sale of Nine Radio. The company is also converting remaining regional TV assets to an affiliate structure, streamlining operations ahead of its Nine 2028 plan.
Cost reduction efforts have yielded $43 million in savings during the half, with $32 million classified as ongoing. These efficiencies have enabled continued investment in content and technology, including AI initiatives targeting customer support, sales, finance automation, and content creation.
Strong Balance Sheet and Forward Outlook
Following the sale of Domain, Nine’s net cash position improved to $158 million, providing financial flexibility for future investments. The company expects Total TV advertising revenue in Q3 FY26 to be broadly flat against a strong prior period and anticipates continued EBITDA growth at Stan, with revenue growth expected to offset higher sports-related costs.
Looking ahead, Nine plans further targeted investments in content and technology across its mastheads and digital marketplaces, aiming to sustain momentum in digital subscription growth and audience engagement.
Bottom Line?
Nine’s H1 FY26 results underscore a successful digital pivot and strategic reshaping, setting the stage for sustained growth amid evolving media landscapes.
Questions in the middle?
- How will the integration of QMS Media impact Nine’s overall advertising revenue and margins?
- What are the expected financial benefits and timelines from the AI initiatives currently underway?
- How resilient is Nine’s advertising revenue in the face of ongoing market softness and political cycles?