Nine Entertainment (ASX: NEC) has reported stronger earnings for FY26 as the media group accelerates a major portfolio reshaping, designed to build a larger base of digital and growth focused businesses.
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Revenue from continuing operations increased 3% to $2.19 billion for the year, while group EBITDA climbed 17% to $379 million. Net profit after tax increased 7% to $142.4 million, with NPATA rising 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, taking the focus for investors towards the company’s ability to turn its newly reshaped portfolio into sustainable earnings growth.
Over the past year, Nine has exited a number of assets, including Domain, Nine Radio, NBN, Darwin, Pedestrian and Future Women. It has simultaneously acquired QMS Outdoor.
Nine expects streaming, digital publishing and outdoor media to account for more than 60% of group revenue and around 70% of EBITDA in FY27.
Stan helped increase EBITDA by 34% to $80.6 million, despite paying subscribers declining from 2.4 million to 2.3 million.
Digital publishing was another area of strength. Digital subscription revenue increased 15%, although the overall 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 the group’s future earnings profile. The acquisition generated $55 million of EBITDA during its first three months within Nine, giving the company an immediate contribution from the expanded outdoor advertising business.
Management expects further growth from the division as the integration progresses, with cost synergies and double digit EBITDA growth forming part of the FY27 outlook.
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