Nine Entertainment reports FY26 profit growth as portfolio shifts toward digital
Key Takeaways
- •Revenue from continuing operations increased 3% to $2.19 billion in FY26.
- •Group EBITDA rose 17% to $379 million, while net profit after tax increased 7% to $142.4 million.
- •Nine declared a 3 cent unfranked final dividend, payable on October 22.
- •The company exited several legacy assets during the year and acquired QMS Outdoor as part of its portfolio shift.
- •Stan and digital publishing both contributed to growth, while QMS Outdoor produced $55 million of EBITDA in its first three months within Nine.
Nine Entertainment (ASX: NEC) reported stronger earnings for FY26 as the media group accelerated a major portfolio reshaping aimed at building a larger base of digital and growth-focused businesses.
Revenue from continuing operations rose 3% to $2.19 billion for the year, while group EBITDA increased 17% to $379 million. Net profit after tax rose 7% to $142.4 million, with NPATA up 11% to $147.2 million. Adjusted earnings per share increased 11% to 9.3 cents.
Nine declared a 3 cent unfranked final dividend, payable on October 22, alongside results that show how the company is trying to offset the decline of legacy assets with businesses that can contribute more of group revenue and earnings over time.
Over the past year, Nine has exited several assets, including Domain, Nine Radio, NBN, Darwin, Pedestrian and Future Women. At the same time, it acquired QMS Outdoor.
The company expects streaming, digital publishing and outdoor media to make up more than 60% of group revenue and about 70% of EBITDA in FY27, making the current period an important transition point for investors tracking the mix rather than just headline profit.
Stan was a key contributor, lifting EBITDA by 34% to $80.6 million despite paying subscribers falling from 2.4 million to 2.3 million.
Digital publishing also performed strongly. Digital subscription revenue increased 15%, although the total number of paying subscribers across the publishing division remained unchanged at 510,000.
Nine is now looking to QMS Outdoor as another major contributor to its future earnings profile. The acquisition generated $55 million of EBITDA in its first three months within Nine, providing an immediate contribution from the expanded outdoor advertising business.
Management expects further growth from the division as integration continues, with cost synergies and double-digit EBITDA growth included in the FY27 outlook.
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