Nine Entertainment Co. (NEC) H2 2026 earnings summary

Executive summary

• Reported revenue and EBITDA growth for FY26, with strategic portfolio realignment focusing on digital, outdoor, and streaming assets, including the acquisition of QMS and divestments of Domain, Radio, NBN, Darwin, Pedestrian, and Future Women.

• Cost-out program ahead of target, with $70m in recurring savings and ongoing restructuring, especially in Publishing.

• Strategic focus on technology, AI initiatives, and digital transformation to drive new revenue streams.

• New profit metrics (EBITA, NPATA, EPSA) introduced post-QMS acquisition to align with industry standards.

• Growth assets (Streaming, Outdoor, Digital Publishing) expected to contribute over 60% of revenue and 70% of EBITDA in FY27.

Financial highlights

• Continuing business revenue: $2.2b (+3% YoY); EBITDA: $379m (+17% YoY); pro forma revenue: $2.4b; group EBITDA: $560m (+6% YoY).

• NPATA: $147m (+11% YoY); EPSA: 9.3c (+11% YoY); full year dividend: 7.5c per share; special dividend of 49c per share paid after Domain sale.

• Net debt at June: $658m; leverage 1.7x, slightly better than guidance.

• Statutory non-cash impairments and specific items after tax totaled $481m, mainly due to a $404m write-down in Total TV.

• Free cash flow of $40.2m, with cash conversion at 84%.

Outlook and guidance

• Pro forma revenue and EBITDA growth expected in FY27, driven by Stan, Digital Publishing, and Outdoor (QMS).

• QMS expected to deliver double-digit EBITDA growth in FY27, with $9m in cost synergies and new contracts contributing.

• Stan positioned for further growth, with levers in subscriber volume, ARPU, and new advertising tier.

• Digital subscription and licensing revenues expected to grow, supported by new agreements (e.g., Microsoft Copilot).

• Total TV advertising market remains challenging; costs expected to be broadly flat.