Nine Entertainment grows earnings, focuses on digital future

The Nine Entertainment Co. Holdings Ltd (ASX: NEC) share price is in focus today after the company reported a 6% lift in Group EBITDA to $201 million and a 30% jump in underlying net profit to $95 million for the half-year ended 31 December 2025.

What did Nine Entertainment report?

• Group revenue (continuing operations): $1.06 billion, down 5% on the prior year
• Group EBITDA (continuing operations): $192 million, up 6% on H1 FY25
• Net Profit After Tax (NPAT, continuing operations): $95 million, up 30%
• Statutory net profit: $81 million, up 42% on pcp
• Interim dividend: 4.5 cents per share, unfranked, payable 23 April 2026
• Underlying subscription revenues grew 13% and group EBITDA margin improved from 16.2% to 18.2%

What else do investors need to know?

Nine delivered its second consecutive half of EBITDA growth, despite a subdued advertising market, as streaming service Stan and the group’s mastheads led the way. The company executed significant cost reduction, delivering about $43 million in efficiencies during the half, with $32 million of these savings expected to continue.

Strategic reshaping of the business saw Nine announce the acquisition of QMS Media and the sale of Nine Radio. The restructuring of its NBN and Darwin TV operations as affiliates will bring in additional proceeds and tax benefits, supporting the shift to a more digital, scalable business. The Domain sale generated cash used for a special dividend and strengthened Nine’s balance sheet, leaving the group in a net cash position of $158 million at period end.

What did Nine Entertainment management say?

CEO Matt Stanton said:

Nine’s second consecutive half of EBITDA growth was achieved against the backdrop of a soft advertising market – with growth from Stan, the metro mastheads and the AFR, as well as a resilient result from Total TV. Our business continues to be defined by strong audience reach and engagement, coupled with disciplined cost management.

Over the past six months, there have been material strategic and operational achievements that will cement Nine’s path for the future.

These transactions will create a higher-growth, digitally powered and resilient Nine Group for our consumers, advertisers, people and shareholders. This positions Nine well for the future, enabling the Group to withstand industry disruption and deliver long-term sustainable value to our shareholders. The strategic transformation represents a step change in Nine’s asset portfolio, with digital growth businesses expected to account for 60% of revenue from FY27, up from 45% in FY25.

What’s next for Nine Entertainment?

Looking ahead, Nine expects to complete the QMS Media acquisition and finalise recent divestments by mid-2026, pending approvals. The company is forecasting ongoing audience and subscriber growth in its digital and streaming businesses, with cost discipline and selective investment in technology and content across all divisions.

Total Television revenues for Q3 FY26 are expected to hold steady, with ongoing cost-cutting initiatives offsetting inflationary pressures. The business remains focused on shifting further toward digital growth, aiming for 60% of group revenue from digital sources by FY27. Investment in data capabilities and content is aimed at supporting Nine’s future earnings and connecting more deeply with audiences and advertisers.

Nine Entertainment share price snapshot

Over the past 12 months, the Nine Entertainment shares have declined 35%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period. 

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The post Nine Entertainment grows earnings, focuses on digital future appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.