Nine Posts 3% Revenue Growth and $379M EBITDA Before Impairment

Nine’s Transformative Year Delivers Statutory Profit Amid Major Portfolio Shifts

Nine Entertainment Co. Holdings Limited (ASX:NEC) closed FY26 with a statutory net profit after tax of $511 million, buoyed by a $849 million gain from discontinued operations, predominantly the sale of its stake in Domain. Yet beneath this headline, continuing operations recorded a net loss of $339 million, weighed down by a substantial $576 million impairment on its Total TV cash generating unit (CGU), reflecting ongoing challenges in the traditional broadcast advertising market.

Group revenue from continuing businesses rose 3% to $2.2 billion, while EBITDA before specific items climbed 17% to $379 million, supported by growth across Streaming & Broadcast, Publishing, and the newly acquired Outdoor segment (QMS). The company’s strategic portfolio reshaping; acquiring QMS Media for $850 million and divesting Domain, Nine Radio, Pedestrian Group, and its regional TV assets; has repositioned Nine towards higher-growth digital and outdoor advertising assets, expected to contribute around 60% of revenue and 70% of EBITDA in FY27.

Digital and Outdoor Growth Offset Traditional Broadcast Pressures

Streaming & Broadcast revenue remained broadly stable at $1.6 billion, with EBITDA up slightly to $214 million. Stan, Nine’s subscription video-on-demand service, posted a record 34% EBITDA increase to $81 million, driven by sports content including the Premier League and Winter Olympics, and entertainment hits like the Married at First Sight spin-off. Conversely, Total TV; comprising free-to-air broadcast and 9Now; saw a 12% EBITDA decline to $134 million, pressured by a soft advertising market and the absence of the Paris Olympics and Federal Election comparables from FY25.

Publishing revenue held steady at $518 million with EBITDA down 3% to $150 million. Digital subscription revenue grew 15%, led by the mastheads including The Sydney Morning Herald, The Age, and The Australian Financial Review, which saw digital subscription and licensing revenues offsetting print advertising declines. Drive, the automotive marketplace, accelerated revenue by 27%, reflecting its growing marketplace business.

Outdoor advertising, newly integrated following the QMS acquisition, delivered $77 million in revenue and $55 million EBITDA (including cash lease expenses), with pro forma FY26 EBITDA growth of 18%. QMS outpaced market growth in Australia and New Zealand, underpinned by digital expansion and new contracts such as the Auckland Transport street furniture deal.

AI Licensing and Cost Efficiencies Highlight Strategic Priorities

Nine is actively monetising its premium content in the AI era, signing an Australian-first content licensing agreement with Microsoft’s CoPilot, allowing AI outputs to reference Nine’s journalism. Additional commercial agreements with Australian corporates license Nine’s archives for grounding internal Large Language Models, creating a new high-margin revenue stream that enhances Publishing’s earnings profile.

The company’s Nine2028 transformation program delivered $105 million in cost savings during FY26, with $70 million recurring, and expects to exceed $160 million in cumulative savings by FY27. These efficiencies underpin ongoing investments in technology initiatives including AI platforms, integrated consumer and sales trading platforms, and a future news transformation.

Long-Term Content Rights and Dividend Policy

In July 2026, Nine secured exclusive NRL and NRLW broadcast rights through 2034, reinforcing its position as the home of live rugby league with key events like State of Origin and the Premiership Grand Final remaining exclusive. This long-term content certainty supports the company’s integrated media proposition and advertiser appeal.

Nine declared a fully franked final dividend of 3.0 cents per share payable in October 2026, with a full-year payout ratio of approximately 80% of NPATA before specific items. However, due to tax prepayments following recent asset sales, near-term dividends are expected to be unfranked.

Climate Governance and Board Composition

Nine’s inaugural sustainability report under the mandatory Australian Sustainability Reporting Standard reveals a low direct emissions footprint, with 97% of emissions classified as Scope 3, primarily from use of sold products. The Board retains ultimate responsibility for climate strategy, with climate risks embedded in enterprise risk management and quarterly oversight by the Audit & Risk Management Committee.

The Board remains majority independent, with recent appointments including Chair Peter Tonagh and Non-Executive Director Leigh Terry, bringing deep media and digital transformation expertise. Gender diversity objectives are being met with 29% female Board representation and 40% female senior executives, supported by a comprehensive Diversity, Equity & Inclusion strategy.

Remuneration Reflects Portfolio Reset and Performance

The FY26 remuneration report highlights below-target short-term incentive (STI) outcomes due to Group EBITDA achieving 95.9% of target and individual objectives assessed between 80-95%. Long-term incentive (LTI) awards linked to relative total shareholder return and earnings per share growth did not vest, while the digital transformation hurdle vested in full, resulting in 20% overall LTI vesting. CEO Matthew Stanton’s fixed remuneration increased modestly to $1.65 million, with an expanded FY26 LTI grant to be proposed at the AGM to reflect the Domain divestment special dividend adjustment.

Looking ahead, Nine expects pro forma revenue and EBITDA growth in FY27, driven by subscription growth at Stan and Publishing, double-digit EBITDA growth at QMS, and stable Total TV costs. The company will continue to unlock synergies across its portfolio, advance AI and licensing initiatives, and leverage its strengthened content rights portfolio.

With a reshaped, digitally focused portfolio and a growing AI licensing pipeline, Nine is positioning itself for sustainable growth amid a challenging broadcast advertising environment. The company’s ongoing transformation and strategic investments warrant close attention as they unfold in FY27.

Investors may watch how Nine navigates the evolving digital advertising landscape, the commercialisation of AI content licensing, and the integration of QMS to drive further earnings growth. The extended NRL rights deal provides content stability but also commits significant future expenditure, adding a layer of strategic risk and opportunity.

Exclusive NRL and NRLW broadcast deal secured through 2034 reinforces Nine’s sports dominance, while the QMS acquisition and radio sale underpin the portfolio’s digital pivot. The Microsoft CoPilot AI licensing partnership marks a pioneering step in monetising premium journalism in the AI era.