Nine Entertainment Co. (NEC) H1 2026 earnings summary

Executive summary

• Group EBITDA rose 6% year-over-year to AUD 201 million (or $201m), with net profit after tax up 30% to AUD 95 million and EPS up 30% to 6.0 cents per share, driven by digital and subscription growth.

• Revenue declined 4–5% year-over-year to AUD 1.1 billion (or $1.14b), reflecting weaker advertising markets, but digital and subscription assets now contribute over 50% of revenue.

• Interim dividend declared at 4.5 cents per share, unfranked, with a fully franked special dividend of 49 cents per share ($777 million) paid.

• Strategic transformation accelerated by the acquisition of QMS Media, sale of Nine Radio, and restructuring of NBN and Darwin TV businesses.

• Cost efficiencies delivered $43 million in savings, with $32 million ongoing, and a net cash position of $158 million achieved after the Domain sale.

Financial highlights

• Group EBITDA margin increased to 18.2%, up nearly two percentage points year-over-year.

• Subscription revenues grew 13%, with Stan and digital publishing as key drivers.

• Net profit after tax from continuing operations rose to $81.4 million, with statutory net profit up 42% to $81 million including specific items.

• Specific items totaled $18 million pre-tax, mainly restructuring and transaction costs.

• Adjusted cash conversion at 92%, reported at 48%, reflecting sports prepayments.

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; currently at zero net leverage.

• Further $70 million in cost reductions targeted through FY26 and FY27, with capex guidance reduced by $5 million for FY26.

• QMS Media acquisition and Nine Radio sale expected to complete in FY26.

• Total TV revenues expected to be flat in Q3 FY26, with TV costs down mid-single digits.