Key Highlights

  • Nine Entertainment reported FY26 Revenue from continuing operations of AUD 2,189.0 million, increasing 3% YoY, while EBITDA before specific items rose 17% to AUD 378.8 million.
  • Stan revenue increased 16% to AUD 569.0 million, while EBITDA rose 34% to AUD 80.6 million, supported by subscription growth and sports content.
  • The Acquisition of QMS Media expanded Nine's outdoor Advertising operations, contributing AUD 77.4 million in revenue and AUD 54.5 million in EBITDA during Q4 FY26.
  • Management increased its cost-reduction target to at least AUD 180 million by the end of FY27, while targeting a larger Earnings contribution from streaming, outdoor advertising and digital publishing.

Nine Entertainment Co. Holdings Limited (ASX:NEC) operates an Australian media and entertainment Business covering free-to-air television, digital streaming, subscription entertainment, news publishing and outdoor advertising. Its principal operations include the Nine television network, 9Now, Stan, digital publishing brands and QMS Media. Following portfolio restructuring and acquisitions during FY26, the company is increasing its exposure to digital and outdoor advertising while reducing reliance on traditional broadcast television. However, weaker television advertising demand, asset impairments and higher borrowings remain important considerations as the company progresses its FY27 transformation strategy.

FY26 Financial Performance and Statutory Adjustments

For the financial year ended 30 June 2026, Nine Entertainment reported revenue from continuing operations of AUD 2,189.0 million, increasing 3% compared with FY25.

EBITDA before specific items increased 17% to AUD 378.8 million, supported by streaming growth and contributions from newly acquired operations.

Net profit after tax before specific items increased 7% to AUD 142.4 million.

Net profit after tax and Amortisation before specific items rose 11% to AUD 147.2 million, equivalent to 9.3 Australian cents per share.

However, the statutory result reflected significant non-cash Impairment charges associated with traditional television operations.

Specific items after tax totalled approximately AUD 481.2 million, primarily reflecting a reassessment of the carrying value of the Total TV business.

These adjustments affected statutory earnings from continuing operations, despite improved underlying profitability.

The company also recorded a substantial gain from discontinued operations following its divestment of non-core assets.

The difference between operating and statutory earnings highlights the financial effects of Nine's ongoing business restructuring.

Television Advertising Challenges and Stan Growth

Nine's Total TV division continued facing difficult advertising market conditions during FY26.

Segment revenue declined 9% to AUD 1,026.8 million, while EBITDA decreased 12% to AUD 133.5 million.

The reduction reflected softer advertising Demand and challenging comparisons with the previous financial year, which benefited from major sporting events.

Management estimated that Total TV revenue declined approximately 2% after adjusting for the prior-year event impact.

Stan delivered an encouraging operating result, with revenue increasing 16% to AUD 569.0 million.

EBITDA increased 34% to AUD 80.6 million, supported by subscriber growth and increased engagement with sports and entertainment content.

In August 2026, Stan introduced an advertising-supported entertainment subscription tier, creating an additional opportunity to diversify revenue.

The company is also developing digital advertising and audience engagement capabilities across 9Now and its streaming services.

QMS Acquisition and Digital Publishing Operations

Nine completed its acquisition of QMS Media on 31 March 2026, expanding its presence in outdoor advertising.

The acquisition introduced additional digital outdoor advertising inventory and provided opportunities for cross-platform advertising services.

During the three months under Nine's ownership in FY26, QMS contributed AUD 77.4 million in revenue and AUD 54.5 million in EBITDA.

The acquisition supports Nine's strategy to diversify earnings beyond traditional television advertising.

Meanwhile, its Publishing division generated revenue of AUD 517.5 million and EBITDA of AUD 149.9 million during FY26.

The segment maintained an EBITDA Margin of approximately 29%, supported by digital subscriptions, advertising and publishing operations.

These businesses provide multiple revenue channels, although advertising activity remains sensitive to broader economic conditions and customer Marketing budgets.

FY27 Trading Update and Cost Reduction Strategy

At the Annual General Meeting on 6 November 2026, Nine provided an update on trading conditions and its transformation programme.

Total TV revenue declined approximately 6% during Q1 FY27, reflecting continued pressure on television advertising.

Management expects a smaller revenue decline during Q2 FY27, although performance remains dependent on advertising conditions and programming schedules.

Digital subscription revenue increased 7% during the September quarter, while outdoor advertising revenue is expected to grow approximately 15% during H1 FY27.

Nine increased its cost-reduction target to at least AUD 180 million by the end of FY27, compared with its previous target of AUD 160 million.

The company expects the majority of FY27 earnings growth to occur during the second half of the financial year.

Management also anticipates that streaming, outdoor advertising and digital publishing will account for more than 60% of FY27 revenue and approximately 70% of EBITDA.

These expectations reflect the increasing contribution of Nine's digital and outdoor businesses.

Balance Sheet and Business Risks

Nine reported net Debt of AUD 657.9 million at 30 June 2026, compared with a net cash position of AUD 157.9 million at 31 December 2025.

Net Leverage reached approximately 1.7 times, reflecting acquisition-related expenditure and changes to the group's capital structure.

The company expects leverage to remain around this level during FY27.

Nine remains exposed to television advertising weakness, content acquisition costs, streaming competition and integration risks associated with QMS.

Additional considerations include changes in advertising technology, digital subscription demand and the effectiveness of cost-reduction initiatives.

The company's immediate priorities include integrating QMS, developing Stan's advertising-supported offerings, improving operational efficiency and maintaining disciplined financial management.

Key Insights

Nine Entertainment Co. Holdings Limited (ASX:NEC) is transitioning towards a more diversified media business following significant portfolio changes in FY26. Growth in Stan, digital publishing and outdoor advertising supported higher underlying earnings, although weaker television advertising and impairment charges affected statutory performance. Management's expanded cost-reduction programme and anticipated FY27 revenue mix indicate a continued shift away from traditional broadcasting. Successful integration of QMS, streaming development and effective debt management will remain important to the company's financial outlook.