Key Highlights

  • A final dividend of 3.0 cents, unfranked, will be paid on 22 October 2026, and the full-year dividend is 7.5 cents.
  • The FY26 payout ratio is about 80% of EPSA, and future dividends are targeted at 60% to 80% of NPATA.
  • Continuing business revenue rose 3% to $2,189.0 million, and EBITDA rose 17% to $378.8 million.
  • The approximate yield is near 11.5%, unfranked, with no reinvestment plan.

Nine Entertainment Co. Holdings Ltd (ASX:NEC) is an Australian media company. Its businesses include the Nine television network and the Stan and 9Now streaming services, a group of metropolitan newspaper mastheads and a digital publishing arm, and an outdoor advertising business, QMS.

During FY26 Nine reshaped its portfolio, buying QMS and selling Nine Radio, its regional television holdings, Pedestrian and its stake in Domain, which funded a fully franked special dividend of 49 cents. It says growth assets, streaming, outdoor and digital publishing, are expected to produce more than about 60% of revenue and about 70% of EBITDA in FY27. Advertising markets and subscription growth drive its earnings, and it now targets paying 60% to 80% of NPATA as dividends.

The Dividend Picture

NEC has an approximate yield of about 11.5% at a price near $0.65, no franking and no reinvestment plan. The release states a final dividend of 3.0 cents, unfranked, payable on 22 October 2026, and a full-year dividend of 7.5 cents, equal to a payout of about 80% of EPSA, which is earnings per share before acquisition amortisation and specific items. From FY26 Nine expects future dividends to be a 60% to 80% payout of NPATA before specific items. A fully franked special dividend of 49 cents was paid in September 2025 following the Domain sale, and is not included in the full-year figure. The yield above is calculated on dividends in the period and a very low price, so it should be read with care.

Understanding the Dividend Data for Nine Entertainment

At a share price of approximately $0.65, the approximate yield is 11.5%. There is no franking, so the grossed-up yield is the same as the cash yield and no tax credits are attached to the payments. No distribution reinvestment plan is available, so payments are made in cash. As an illustration of the arithmetic only, a holding worth $10,000 at that price and yield would correspond to roughly $1,154 of cash distributions over a year before tax, calculated from the stated percentage. The yield is high partly because of the low share price, and future dividends are targeted at 60% to 80% of NPATA. Yields of this kind depend on the share price on the day and on which payments are counted, so they move as the share price changes and are not a forecast.

Results

Nine Entertainment Co. Holdings Ltd (ASX:NEC) released its 2026 final results on 26 August 2026.

On a continuing basis, revenue rose 3% to $2,189.0 million and EBITDA rose 17% to $378.8 million. NPATA before specific items was $147 million, up 11%. Statutory net profit of $511 million includes specific items from divestments.

Portfolio Changes

Nine says growth assets, Streaming, Outdoor and Digital Publishing, are expected to contribute more than about 60% of revenue and about 70% of EBITDA in FY27. Year-end leverage was 1.7 times, slightly better than guidance.

The Reshaped Portfolio

Nine completed the acquisition of QMS and sold Nine Radio, its regional television holdings in NBN and Darwin, Pedestrian and its stake in Future Women, rebalancing towards growth and digital assets. On a continuing basis, EBITA was $235 million, up 6%, and EBITDA before specific items was $379 million, up 17%. On a pro forma basis that includes a full year of QMS, revenue was $2.4 billion, up 1%, and EBITDA was $516 million, up 6%. Subscription revenue grew 12%, and EBITDA grew in Outdoor, Mastheads and Streaming and Broadcast.

Statutory Profit and Specific Items

Statutory net profit of $511 million includes a continuing result of $142 million before specific items and a discontinued result of $849 million, mainly from the sale of Nine's stake in Domain, offset by a specific item loss of $481 million for a non-cash impairment of Total TV. The large statutory profit therefore comes largely from asset sales, which is why the dividend is set against NPATA before specific items, not the statutory figure. The 49 cent fully franked special dividend paid in September 2025 followed the Domain sale and is excluded from the full-year 7.5 cents, and the final 3.0 cent dividend is unfranked because of the tax position described in the release.

How the Payout Measure Works

The measure that matters for this dividend is NPATA before specific items and EPSA. Nine targets a payout of 60% to 80% of NPATA before specific items, and the FY26 payout was about 80% of EPSA. Specific items such as the Total TV impairment are excluded. Investors comparing the figure with a yield should remember that the yield is calculated on a price, while the payout compares the dividend with the company's own earnings measure, so the two answer different questions. A high payout can leave little retained cash, while a low payout can leave room for growth or debt reduction, and the right balance depends on the business.

Key Dates and Timing

The final dividend is payable on 22 October 2026, and the results were released on 26 August 2026. Dividend and distribution amounts can change from period to period, and the announcement is the source for amounts and dates. Anyone relying on a date should confirm it against the company's notice, because record dates and payment dates vary by security.