Nine Entertainment Co. (NEC) H2 2025 earnings summary

Executive summary

• Achieved group revenue of $2.7 billion, up 2% year-over-year, with digital revenues now 47% of total and group EBITDA of $486 million; H2 profit up 13% and H2 EBITDA up 8%.

• Net profit after tax and minorities before specific items was $166 million; statutory net profit was $133 million after $61 million in specific item costs; EPS down 10% to 10.5 cents.

• Digital revenue grew 6% and subscription revenues rose 10%, now 32% of group revenue, driven by Stan and digital publishing.

• Sold 60% stake in Domain at a 60% premium to 60-day VWAP for $1.4 billion, enabling significant capital return and special fully franked dividend of 49c per share.

• Cost reduction program delivered $80 million in savings, with $60 million ongoing, ahead of initial guidance.

Financial highlights

• Group revenue increased 2% year-over-year to $2.7 billion; group EBITDA reached $486 million, down 6% year-over-year.

• Net profit after tax and minorities before specific items: $166 million; statutory net profit: $133 million; net profit after tax (pre-minorities) declined 10% to $194.4 million.

• Digital revenue up 6% and subscription revenue up 10% year-over-year, now 32% of group revenue.

• Cash flow from operating activities was $381 million, excluding Domain; cash conversion reported at 112%, adjusted at 90%.

• Capex for FY25 at $91.8 million.

Outlook and guidance

• Expect continued EBITDA growth in H1 FY 2026 versus H1 FY 2025, driven by digital and subscription assets.

• Limited visibility on H2 FY 2026 advertising market; Q1 FY 2026 Total TV revenues expected to be flat year-on-year.

• Total TV costs in FY 2026 expected to be down low to mid single-digit percentage; excluding major events, costs expected to be broadly flat.

• Stan revenue growth in FY 2026 expected to more than offset higher costs, supported by Premier League deal.

• Publishing digital subscription revenue growth expected to continue in low mid-teen percentages in Q1 FY 2026.