Nine Entertainment Co. (NEC) H1 2026 earnings summary

Executive summary

• Group EBITDA for H1 FY26 rose 6% year-over-year to AUD 201 million (or $192.2 million), driven by digital, streaming, and subscription growth, despite a 4–5% revenue decline to AUD 1.1 billion ($1,060.0 million).

• Net profit after tax increased 30% to AUD 95 million ($95.2 million), with EPS up 30% to 6.0 cents per share; statutory NPAT including specific items was $81.4 million.

• Interim dividend declared at 4.5 cents per share, with a fully franked special dividend of 49.0 cents per share ($777 million) paid.

• Strategic transformation included the QMS acquisition, sale of Nine Radio, and restructuring of NBN and Darwin.

• Growth assets (Stan, 9Now, Digital Publishing) now contribute over 50% of revenue and EBITDA, with subscription revenue up 13%.

Financial highlights

• Group EBITDA margin increased by 2.0 percentage points to 18.2%.

• Cost savings of AUD 43 million ($43.4 million) achieved, with AUD 32 million recurring.

• Net cash position of $158 million at December 2025, following the Domain sale and special dividend.

• Specific items totaled a pre-tax cost of AUD 18 million, mainly restructuring and transaction costs.

• Adjusted cash conversion at 92%; reported cash conversion at 48%.

Outlook and guidance

• Growth assets expected to contribute 60% of revenue and nearly 70% of EBITDA by FY27.

• Leverage projected to peak at 1.8x by June 2026, then fall to 1x–1.5x by end of FY27.

• Further AUD 70 million in cost reductions targeted through FY26 and FY27.

• CapEx guidance for FY26: $75–80 million BAU, $40–50 million investment capex; guidance reduced by AUD 5 million.

• Macro-economic uncertainty and weak advertising markets expected to persist.