Key Highlights

  • Earnings rose in FY26 even though the Advertising market was soft.
  • Nine sold its radio arm, its stake in Domain and Pedestrian, and acquired outdoor advertising Business QMS Outdoor.
  • Management expects streaming, outdoor and digital publishing to make up more than 60% of group Revenue and 70% of EBITDA in FY27.
  • The group retained the NRL broadcast rights.

How different is Nine Entertainment (ASX:NEC) from the broadcaster investors knew a few years ago? Quite different. In FY26 Nine sold its stakes in Domain and its radio arm, acquired the outdoor advertising business QMS and leaned harder on streaming and digital publishing. The result, reported on 26 August 2026, shows Earnings rising even though the advertising market was soft, which is the central reason the company's reshaping is being watched closely.

A portfolio in transition

During FY26 Nine completed a series of portfolio changes. It acquired QMS Outdoor and retained the NRL broadcast rights.

Management says that in FY27 streaming, outdoor and digital publishing should make up more than 60% of group revenue and 70% of EBITDA. That is a forecast of mix, not a measured outcome, but it signals the direction of travel: less dependence on traditional free-to-air advertising and more on subscriptions and outdoor media.

FY26 financial results

Revenue: A$2.19 billion, up 3%.

EBITDA: A$379 million, up 17% (pro forma growth of 6%).

Net profit after tax: A$142.4 million, up 7%.

NPATA: A$147.2 million, up 11%, with Earnings Per Share before Amortisation of 9.3 cents.

Final dividend: 3.0 cents per share, unfranked, payable on 22 October 2026.

The gap between reported and pro forma growth is important. Stripping out portfolio changes, underlying EBITDA growth was a more modest 6%.

Segment performance

Streaming and broadcast. The total television advertising market fell about 9%, and Nine's total TV revenue excluding the Olympics fell about 2%. Stan was the standout: revenue rose 16% to A$569 million and EBITDA rose 24% to A$80.6 million, helped by Premier League rights. Nine is working to unify the technology of Stan and 9Now.

Publishing. Revenue was broadly flat and EBITDA fell A$3.8 million to A$149.9 million. Within that, the masthead business grew revenue 3% to A$460 million and EBITDA 4% to A$153 million. Financial Review was described as the star performer, while the Nine.com.au contribution was called disappointing and is being relaunched. A restructure removed 35 roles.

QMS. Revenue rose 15% and EBITDA 18%, with Australian revenue up 10% against market growth of 6% and New Zealand revenue up 48% against market growth of 11%, helped by an Auckland street furniture contract.

Dividend policy and capital

Nine has said future dividends will target a payout of 60% to 80% of earnings, but upcoming dividends are likely to be unfranked. For investors who value franking credits, that is a meaningful change from a fully franked payout.

Policy and AI licensing

Two developments sit outside the profit and loss statement but could matter to publishing earnings. The government's News Bargaining Incentive, which requires large platforms to pay Australian publishers for news, has passed. Chief executive Matt Stanton called it arguably the most consequential outcome for Nine and its peers. Nine has also signed a deal with Microsoft Copilot covering use of its journalism, and says it has a good pipeline of other AI licensing agreements. Management suggested these could return Publishing to growth, but no formal guidance or dollar value was provided, so the financial impact is unknown.

Competitive position

Nine competes in free-to-air television with Seven West Media and Network Ten, in streaming with global services and local rivals, and in outdoor advertising with other large operators. Its advantages include sports rights such as the NRL and Premier League on Stan, and a leading business masthead in the Financial Review. Its challenges are structural: linear television audiences and advertising are under pressure, and streaming competition is intense. 9Now streaming revenue fell A$15 million for the year but rose 5% in the second half.

Risks and what to monitor

Advertising cycle: a soft market that fell about 9% in television can persist, and Nine has no formal FY27 guidance.

Integration: delivery of QMS cost synergies and the double-digit outdoor EBITDA growth management expects.

Streaming economics: whether Stan's margins hold as programming and sports rights costs rise.

Regulation and AI licensing: how the News Bargaining Incentive and AI deals translate into revenue.

Dividend quality: unfranked dividends and the target payout range.

Upcoming developments

Investors will look to the first-half FY27 result, expected in early 2027, for evidence of QMS synergies, Stan subscriber trends and publishing growth, and for any disclosure on how much the bargaining incentive and AI agreements contribute.

The bottom line

Nine is clearly a different company from a year ago, and FY26 showed earnings growth despite weak advertising. Whether that growth is sustainable depends on streaming, outdoor and digital publishing outperforming a shrinking broadcast base.