Nine Entertainment has reported a materially stronger profit result for FY26, with EBITDA increasing 17 percent to $379 million on a continuing business basis, despite revenue growth of only 3 percent to $2.2 billion. This significant operating leverage reflects the company’s portfolio transformation over the past year, which has seen it shed structurally challenged assets while acquiring higher-margin growth businesses.
The company’s strategic repositioning is the most consequential aspect of these results. Nine has divested its Domain real estate platform, radio operations, and Pedestrian Group while acquiring the QMS Media digital publishing platform. These transactions have fundamentally reshaped the business mix, with management now guiding that growth assets comprising streaming services (Stan and 9Now), outdoor advertising, and digital publishing will account for approximately 60 percent of revenue and 70 percent of EBITDA in FY27. This represents a deliberate shift away from Nine’s traditional broadcast television operations toward higher-growth, digitally-oriented segments with stronger long-term demand dynamics.
The financial metrics support this transition strategy. EBITA reached $235 million, up 6 percent on the prior year, while net profit after tax before amortisation of acquisition intangibles grew 11 percent to $147 million. These figures demonstrate that management has successfully managed the earnings impact of divesting revenue streams while deploying capital into more profitable segments. The company maintained shareholder distributions, declaring a dividend per share of 70.8 cents, which includes a specific dividend component of 49 cents paid in September 2025. Earnings per share on the same basis reached 56.55 cents.
For investors, the key question is whether Nine’s shift toward streaming and digital assets will deliver the growth trajectory management is targeting. The company’s statement that it is now better positioned for long-term value creation and has enhanced operational scale carries weight, but the execution risk should not be understated. Streaming services remain competitive and capital-intensive, and the advertising market has proven cyclical. Nine’s ability to cross-sell advertising and data services across its integrated portfolio of content and publishing assets represents a potential competitive advantage, but this will only translate to shareholder value if the company can achieve the margin accretion it is targeting in FY27.
Investors should monitor several indicators in coming quarters. The contribution of growth assets to group profitability and the trajectory of standalone streaming and digital metrics will be critical. Management guidance on FY27 earnings and any capital deployment decisions will also warrant close attention. Nine’s substantial transaction activity during FY26 suggests an appetite for further portfolio refinement, which could create either value or disruption depending on execution and valuations. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Nine Entertainment Co. Holdings Limited (ASX: NEC)
Nine Entertainment Co. Holdings Limited is Australia’s largest media conglomerate, operating free-to-air television networks, subscription video on demand services, and metropolitan radio networks. The company owns major publishing mastheads including the Sydney Morning Herald, The Age, and Australian Financial Review, as well as Stan, a leading domestic subscription streaming service. It generates revenue through broadcasting, publishing, radio, and digital media operations across Australia.
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