Nine Entertainment (ASX:NEC) used its first-half FY26 results briefing to highlight earnings growth, expanding subscription and digital revenue, and progress on a multi-year cost and portfolio reshaping program, even as executives acknowledged ongoing softness and uncertainty in the advertising market.
Half-year results: EBITDA up, margin expanded, dividend declared
For the six months to December, Nine reported group EBITDA (including Radio, NBN and Darwin) of AUD 201 million, up 6% on the prior corresponding period (PCP), on revenue of AUD 1.1 billion. On a continuing business basis, the company reported EBITDA of AUD 192 million, also up 6%.
CFO Martyn Roberts said specific items totaled a pre-tax cost of AUD 18 million in the half, including restructuring costs (primarily redundancies), around AUD 5 million related to development of Nine’s in-house total trading platform and HRIS projects, and roughly AUD 3 million of pre-transaction costs tied to the sale of Nine Radio, restructuring of NBN and Nine Darwin, and the acquisition of QMS. After specific items, net profit for the half was AUD 81 million.
Nine said its group EBITDA margin increased by nearly two percentage points to 18.2%, supported by cost actions and a mix shift toward subscription and digital revenue streams.
Cost-out program and balance sheet update
Nine said it removed a further AUD 43 million of costs in the half, including AUD 32 million on an ongoing basis. Management reiterated an expectation to deliver at least AUD 160 million of cost reductions across FY25, FY26, and FY27, with AUD 92 million delivered to date, and flagged a further AUD 70 million of underlying costs expected to come out across the second half of FY26 and into FY27.
Roberts also walked through a large swing in net debt, citing proceeds from the Domain transaction. Nine’s net debt moved from AUD 450 million at July 1, 2025, to AUD 158 million in cash at December 31, 2025. He said this included AUD 720 million in proceeds from Domain (net of dividend and tax) and noted Nine paid a AUD 777 million fully franked special dividend.
Looking ahead, the company said it expects leverage to peak at around 1.8x by June 2026 following completion of M&A transactions, and then move back into Nine’s targeted range of 1.0x to 1.5x by the end of FY27, aided by enhanced EBITDA of the combined entity and expected realization of tax losses around January 2027.
Strategic transformation: portfolio reshaping and AI commercialization
CEO Matt Stanton said recent portfolio actions—including the announced acquisition of QMS, the sale of Nine Radio, the restructuring of NBN, and an update on Nine Darwin—are intended to accelerate Nine’s strategic transformation by increasing exposure to “growth assets.” He described outdoor as resilient versus global platforms and said the company has streamlined around premium content, digital growth, and subscription and licensing assets.
Nine estimated that in the latest result, roughly 51% of revenue and 49% of EBITDA came from growth assets (Stan, 9Now, and Digital Publishing). Looking to FY27, Nine estimated on a pro forma basis around 60% of revenue and nearly 70% of EBITDA would be sourced from growth assets, including the higher-margin outdoor business and reduced reliance on broadcast.
Management also emphasized progress on AI initiatives, both for efficiency and new revenue. Stanton said Nine has rolled out Google’s Gemini platform across the company and is shifting from an “establishment phase” to accelerating “redesign,” citing use cases in customer support, sales, finance automation, consumer engagement, content creation, and engineering.
He also said Nine has signed two Australian corporate customers to license Nine content into their own proprietary AI ecosystems, describing it as an early step in content commercialization for in-house LLM training.
Streaming and broadcast: Stan hits record EBITDA as TV ad market remains difficult
Nine pointed to a “pleasingly robust” result for Total TV and a record half at Stan. Roberts said operationally the company has been broadening its advertising offering in digital video, including introducing ads on Stan Sport and leveraging its sales agreement for HBO Max.
On Total TV, Nine said revenue on a continuing business basis declined 14% in the half, against a market down about 10%, with comparables affected by the prior-year Olympic period. Total TV costs declined by AUD 85 million, driven by a AUD 76 million net reduction in sports costs (primarily the Paris Olympic and Paralympics). Nine said underlying savings of about AUD 25 million more than offset inflation and strategic investments in premium content and technology, resulting in broadly steady Total TV EBITDA of AUD 99 million.
At Stan, Nine reported revenue growth of 15% and said sport drove performance, with the Premier League outweighing the absence of the Olympics. The company said average sport subscribers grew 40% on higher ARPU, with ARPU up 6% across the half. Management put current Stan subscribers at around 2.4 million, noting a more competitive entertainment market and the conclusion of Yellowstone in the comparative period.
Stan delivered a record first-half EBITDA result of AUD 37 million, up 24%, with Nine citing lower entertainment costs year-on-year and early benefits from the streaming and broadcast restructure. The company said advertising introduced to Stan Sport at the beginning of FY26 generated “single-digit millions” of advertising revenue in the half, despite a short lead time.
Publishing: digital subscription growth offsets print declines; Drive accelerates
Nine said subscription revenues rose 13% across the group, supported by double-digit growth at Stan and digital subscription revenue growth in publishing. Management reiterated that digital revenue at the mastheads is growing faster than print revenue is declining.
In publishing, Nine reported revenue of AUD 262 million and combined EBITDA of AUD 74 million, flat year-on-year. The result included an AUD 8 million reduction in defamation provisions, which management said was primarily due to completion of the Ben Roberts-Smith case, alongside a “mid-single-digit millions” investment in Drive.
Nine said digital revenues grew 9% at the Metro mastheads and 32% at Drive. Drive’s growth was driven by a 120% increase in marketplaces revenue, supported by a 108% rise in dealer car listings, which management said more than offset a 5% decline in advertising.
Mastheads EBITDA grew AUD 5 million to AUD 78 million, with digital subscription revenue up around 17%. However, Nine said advertising was pressured by broader market softness, prior-year Olympics revenue, and campaign timing shifts, with print advertising down 11% and digital advertising down 14% (citing softness in government, business, and travel). Costs declined AUD 2 million, with savings from defamation and printing partially offset by salary and subscriber marketing increases.
Separately, management said nine.com.au profitability declined by about AUD 4 million and that the business is undergoing a refocus of its product and audience proposition, with website enhancements and a new executive editor starting during the period.
On the outlook, management said the new year has begun on a “more positive note operationally,” pointing to strong content and Q3 advertising share, but cautioned it is “too early” to call the fourth quarter ad market, describing prior-year Q4 as choppy and noting that visibility improves as bookings build.
About Nine Entertainment (ASX:NEC)
Nine Entertainment Co Holdings Limited engages in the broadcasting and program production businesses across free to air television, video on demand, and metropolitan radio networks in Australia. It operates through Broadcasting, Digital and Publishing, Domain Group, and Stan segments. The company provides television services under the brands, including 9Network, Channel 9, 9Gem, 9Go!, 9Life, and 9Rush; video on demand platform under 9Now brand; radio stations under 2GB, 3AW, 4BC, and 6PR brands; and publishes newspapers, news-inserted magazines, digital, and events, as well as nine.com.au, a site of news, lifestyle, sport, and entertainment content.
