Half Year 2026 Nine Entertainment Co Holdings Ltd Earnings Call Transcript
Key Points
- Nine Entertainment Co. Holdings Ltd (ASX:NEC) reported a group EBITDA of $201 million, up 6% on the previous corresponding period, with a net profit after tax of $95 million, up 30%.
- The company achieved a 13% growth in subscription revenues, driven by double-digit growth at Stan and digital subscription revenues at publishing.
- Nine's strategic transformation initiatives, including the acquisition of QMS and restructuring of NBN and Darwin, are expected to accelerate growth by increasing exposure to growth assets.
- The company has made significant progress with AI initiatives, enhancing operational efficiency and commercializing proprietary content, with successful licensing deals with Australian corporates.
- Stan reported a record half-one EBITDA result of $37 million, up 24%, with strong growth in sports subscribers and ARPU due to the Premier League contract.
- The advertising market remains weak, impacting revenue growth despite strong content performance.
- Total TV revenue declined by 14% on a continuing business basis, affected by the prior-year Olympic period and a challenging advertising market.
- Digital advertising revenue at Nine's Mastheads declined by 14%, reflecting softness in government, business, and travel sectors.
- The company faces regulatory challenges, including the potential impacts of the News Media Bargaining Code and local content investment obligations for subscription streamers.
- There is uncertainty in the advertising market outlook for Q4, with potential impacts from recent interest rate hikes and economic headwinds.
(video playing)
Good morning everyone and thank you for joining us for our H1 FY26 results briefing. I'm Matt Stanton, CEO of Nine Entertainment. Joining me here today is our CFO, Martyn Roberts. And we are coming to you from our studio in North Sydney, which was upgraded in preparation for the Winter Olympics.
The studio has been integral to the coverage of all the action from Milano Cortina that has enthralled Australian audiences on Nine, 9Now, and STAN over recent weeks.
I'd like to start off by acknowledging the Traditional Custodians of country throughout Australia and their connections to land, sea, and community. We pay our respects to their Elders past, present, and emerging and extend that respect to all First Nations people today. For myself, I am on the land of the Cammeraygal people of the Eora Nation.
For the six months to December, Nine has reported group EBITDA, including Radio and NBN and Darwin, of $201 million, up 6% on PCP, on revenue of $1.1
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