Nine Entertainment Co. Holdings (ASX: NEC) has seen its share price surge by 4% following the release of its latest financial results, which indicate a second consecutive half of robust EBITDA growth. This positive momentum is largely attributed to the stellar performance of its streaming platform, Stan, driven by significant subscriber increases, and the steady resilience shown by its metropolitan mastheads, including the esteemed Australian Financial Review.
While Nine’s broadcast television segment experienced some revenue softness, investors have clearly been swayed by the company’s improved profitability, expanding margins, and a strengthening balance sheet, a significant positive shift following the strategic divestment of its Domain business.
Nine’s Financial Performance Snapshot
For the six months concluding on 31 December 2025, Nine reported revenue of $1.06 billion from its continuing operations. This figure represents a 5% decrease compared to the previous corresponding period. However, the company’s Group EBITDA, before accounting for specific items, saw a healthy increase of 6%, reaching $192 million. Crucially, the EBITDA margin also expanded, moving from 16% to an impressive 18%.
The net profit after tax, also before specific items, experienced a substantial 30% jump to $95 million. Statutory net profit followed suit with a 42% rise, hitting $81 million. Earnings per share (EPS) climbed by 30% to 6.0 cents. In line with these positive results, the board has declared an unfranked interim dividend of 4.5 cents per share.
A notable highlight in Nine’s financial position is its net cash standing of $158 million at the end of the half. This achievement is a direct consequence of the Domain disposal and marks a significant departure from previous periods characterised by higher leverage.
Key Performance Drivers and Segment Analysis
The standout performer in Nine’s portfolio continues to be its streaming service, Stan.
Stan: Revenue from Stan surged by 15% to $282.7 million. This growth is underpinned by consistent subscriber acquisition and a 6% increase in average revenue per user (ARPU). The platform now boasts approximately 2.4 million paying subscribers. A particularly strong performer within Stan is Stan Sport, which saw its average subscriber base grow by an impressive 40% year-on-year. This surge is largely credited to the acquisition of rights for major sporting events, including the English Premier League and the FA Cup. Despite an increase in sport-related costs due to the new Premier League contract, Stan’s EBITDA rose by 24% to $36.6 million.
Total Television: In contrast, the Total Television segment experienced a revenue decline of 14%. This dip is understandable given the strong comparator period from the previous year, which included the Olympic Games, and a generally soft advertising market. However, through disciplined cost management, Total TV EBITDA remained broadly flat at $99 million, with an accompanying improvement in margins.
Publishing: The Publishing division demonstrated remarkable stability, delivering consistent EBITDA of $73.7 million. Digital subscription revenue was a key contributor, growing by an impressive 17%. The total subscriber base for digital content now exceeds 516,000, with ARPU up by 14%. This digital growth has more than compensated for the expected declines in print revenue.
Across the entire group, Nine successfully achieved approximately $43 million in cost efficiencies during the half, with an estimated $32 million of these savings expected to be ongoing.
Management’s Perspective on Strategic Progress
Nine’s CEO, Matt Stanton, expressed his satisfaction with the results, attributing them to a combination of strong audience reach, expanding subscription revenue, and stringent cost management, all achieved amidst prevailing macroeconomic uncertainties.
He specifically highlighted the company’s strategic advancements, including the recently announced acquisition of the outdoor media business QMS and the divestment of Nine Radio. These moves are seen as strategically positioning Nine to focus on higher-growth digital assets, signalling a clear pivot in the company’s future direction.
Outlook and Investor Sentiment
Looking ahead, Nine anticipates that Total TV revenue in the third quarter will be broadly flat when compared to the strong performance of the prior year. The company expects continued strong EBITDA growth from Stan, with projected subscription growth anticipated to more than offset the increased costs associated with its sports broadcasting rights.
With Nine’s digital and subscription-based businesses now contributing a progressively larger share of its overall earnings, investors appear to be embracing the company’s strategic reorientation. This pivot towards streaming, publishing, and outdoor growth platforms is resonating positively in the market. The market’s reaction, as evidenced by the 4% share price increase, suggests confidence in Nine’s strategy to leverage its diverse media assets for sustained future growth.
