Nine Entertainment Co. (NEC) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY25 was AUD 1.4 billion, up 1% year-over-year, with Group EBITDA before specific items down 15% to AUD 268 million, reflecting weaker advertising markets, higher Olympics costs, and the loss of Meta revenues.

• Net profit after tax attributable to owners was AUD 96 million, down 15% year-over-year, with net profit after tax and minorities (before specific items) at AUD 95 million.

• Digital revenue grew 6% year-over-year, now representing about 50% of group revenue.

• Cost savings of AUD 35 million were achieved in H1, with full-year savings expected to exceed the original target by AUD 10-20 million.

• Strategic transformation initiatives, including the Nine2028 program, are underway to drive cost efficiencies, revenue opportunities, and cultural change.

Financial highlights

• Group revenue for H1 FY25 was AUD 1.4 billion, up 1-2% year-over-year.

• Group EBITDA reached AUD 268 million, with margin down to 19.3%; net profit after tax and minorities (before specific items) was AUD 95 million.

• Statutory net profit was AUD 96 million, including AUD 16 million in specific item expenses, mainly restructuring costs.

• Operating cash flow rose to AUD 209 million, with cash conversion at 109%; net debt reduced to AUD 481 million (wholly owned), leverage at 1.4x.

• Interim dividend of 3.5 cents per share declared, fully franked, with an annualized yield of ~5.5%.

Outlook and guidance

• Calendar 2025 started well, with strong audience and advertiser momentum, especially in streaming and broadcast.

• Total TV ad revenue in Q3 expected to be up high single digits year-over-year; 9Now advertising revenue growth in low-mid teens.

• Stan's H2 EBITDA growth expected to exceed H1's 16% increase.

• Publishing Q3 digital subscription revenue growth expected in low-mid teens; H2 publishing EBITDA to be below H1 due to seasonality.

• Further cost efficiencies of over AUD 100 million expected by FY27, with AUD 10-20 million realized in FY25.