Nine Entertainment (ASX: NEC) Lifts FY26 Earnings as Stan and QMS Drive Growth

Nine Entertainment reported higher revenue and earnings for FY26 after reshaping its portfolio around streaming, outdoor media and digital publishing.

On a continuing-business basis, revenue rose 3% to $2.19 billion. EBITDA before specific items increased 17% to $378.8 million.

Net profit after tax on the same basis climbed 7% to $142.4 million. Adjusted earnings per share rose 11% to 9.3 cents.

The continuing-business figures exclude Domain, Nine Radio and Pedestrian. They include three months of QMS and treat NBN and Darwin as affiliates.

Stan and Outdoor Lead the Expansion

Stan delivered its fourth consecutive year of profit growth. Revenue increased 16% to $569 million, while EBITDA jumped 34% to a record $80.6 million.

Average Stan Sport subscribers grew almost 50%, primarily following the addition of Premier League rights. Total paying Stan subscribers currently stand at around 2.3 million.

QMS contributed $54.5 million of EBITDA during Nine’s three months of ownership. Nine completed the outdoor advertising acquisition on 31 March 2026.

On a full-year pro forma basis, QMS revenue increased 15% to $295.4 million. EBITDA before lease cash payments rose 15% to $87.9 million.

These results show how Nine’s portfolio is shifting away from traditional broadcast exposure. Streaming, outdoor and digital publishing should provide more than 60% of FY27 revenue.

Nine expects those businesses to generate about 70% of FY27 EBITDA.

Broadcast Weakness Remains Visible

Total Television revenue declined 9% to $1.03 billion. EBITDA fell 12% to $133.5 million amid a difficult advertising market and strong prior-year comparisons.

Those comparisons included the Paris Olympics and the federal election. Excluding Summer and Winter Olympics, Nine estimated underlying Total TV revenue fell about 2%.

Nine also recorded a $403.6 million after-tax impairment against Total Television. The accounting charge was non-cash and formed most of the group’s $481.2 million in specific items.

Statutory net profit reached $510.6 million. That figure included $849.4 million from discontinued operations, predominantly related to the Domain stake sale.

Costs, Debt and Dividends

Nine delivered around $70 million of long-term, maintainable cost efficiencies during FY26. It now expects to exceed its three-year target of $160 million by June 2027.

Chief Executive Matt Stanton said: “We expect to exceed our three year cost out target of $160m to June FY27.”

Net debt ended the year at $657.9 million, while leverage was 1.7 times. Operating cash before specific items, interest and tax reached $325 million.

Nine declared an unfranked final dividend of 3 cents per share, payable on 22 October 2026. The full-year dividend was 7.5 cents, representing an adjusted payout ratio of about 80%.

FY27 Signals

Nine expects pro forma revenue and EBITDA to grow again in FY27. QMS is forecast to deliver double-digit pro forma EBITDA growth, excluding about $9 million of expected synergies.

Stan earnings are also expected to rise, supported by sport and a new advertising tier. However, first-quarter Total TV revenue is expected to decline between 7% and 8%.