Nine Entertainment Co. Holdings Limited

For the 6 months to December, reported group EBITDA was $201 million, up 6% on the prior corresponding period, on revenue of $1.1 billion. On a continuing business basis, group EBITDA was $192 million, also up 6%, and net profit after tax was $95 million, up 30%; EPS was $0.06 per share, up 30%, and Nine declared a $0.045 interim dividend. Group EBITDA margin increased to 18.2%, subscription revenues grew 13%, and the company said it removed $43 million of costs in the half, including $32 million on an ongoing basis. Forward-looking, management reiterated delivery of at least $160 million of cost reductions across FY '25, '26 and '27, with $92 million delivered to date, and said leverage is expected to peak at around 1.8x by June 2026 before easing into its 1 to 1.5x target range by the end of FY '27 after the M&A benefits and tax losses flow through.

Matt Stanton framed the period as a step-change in Nine’s strategy, saying the company is being streamlined around premium content, digital growth, and subscription/licensing assets. He emphasized that the business is moving toward a “digital-first connected media business,” with growth assets estimated at about 51% of revenue and 49% of EBITDA now, rising to around 60% of revenue and almost 70% of EBITDA on a pro forma FY '27 basis. His tone was upbeat on content, AI, and portfolio reshaping, and he repeatedly pointed to cross-platform execution, better monetization of content, and a more capital-light operating model.

Martyn Roberts highlighted the hard numbers: $1.1 billion of continuing business revenue, $192 million of EBITDA, $95 million of NPAT before specific items, and $81 million net profit after $14 million of specific-item costs. He detailed $18 million of pre-tax specific items, mostly restructuring, plus nearly $5 million for internal trading/HRIS projects and around $3 million of transaction costs tied to the portfolio changes. He also noted cash flow from operating activities of $96 million, cash of $158 million at December 31 versus net debt of $450 million at the start of July, and leverage expected to peak at around 1.8x by June 2026 before moving back into target range by FY '27.

Analysts focused on the outlook for TV advertising, Stan subscriber dynamics, QMS economics, capital expenditure, and AI/LLM monetization. Management said Q4 was too early to call because the market remains choppy and the broadcast mix is less material later in the quarter, while Stan’s sports growth has been strong but entertainment has been more stable than expanding. On AI, Matt Stanton said Nine believes it is “net positive” from AI, citing two signed Australian licensing deals and a pipeline of opportunities; on QMS, Martyn Roberts said the acquisition should support EPS accretion, referencing $105 million of EBITDA in calendar 2026, about $50 million of D&A, and around $35 million of annual after-tax interest costs, plus $20 million of synergies before tax.