FY26 Financial Results
Nine Entertainment Reports FY26 Revenue Growth Amid Major Portfolio Transformation and QMS Acquisition
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Key Points
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Nine broadened content licensing deals for AI applications, including an agreement with Microsoft, expanding how Nine’s content can be licensed for AI use.
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QMS Outdoor contributed EBITDA of about $55 million in the first three months after acquisition, signaling early contribution to Nine's Outdoor growth.
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Digital subscription revenues grew around 12% in FY26, underpinned by strength in mastheads and Stan.
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Nine declared an interim dividend of AUD 0.03 per ordinary share for the six months ended 30 June 2026, with ex-dividend on 10 September and payment scheduled for 22 October.
Nine Entertainment reported FY26 continuing revenue of $2.19 billion, up 3% year-over-year, with EBITDA of $379 million and a 17.3% margin Market Screener. The company is reshaping its portfolio around higher-growth assets—streaming, outdoor advertising, and digital publishing—after divesting Domain, Radio, and other slower-growth businesses while acquiring QMS Outdoor.
Management projects double-digit EBITDA growth from Outdoor as QMS integrates, alongside stronger growth in the Stan streaming service and digital publishing Kalkine. Nine also declared an interim dividend of AUD 0.03 per share and signaled it will exceed its $160 million three-year cost-reduction target.
QMS Outdoor Acquisition Drives Growth Momentum
Nine's $2.4 billion pro forma revenue and $516 million pro forma EBITDA (21.4% margin) reflect the full-year impact of owning QMS Outdoor Market Screener. In just three months after acquisition, QMS delivered about $55 million of EBITDA, signaling strong early contribution Kalkine.
The outdoor advertising business is positioned as one of Nine's primary growth engines, with management betting on double-digit EBITDA expansion as integration accelerates. This acquisition reflects Nine's shift away from legacy media toward higher-margin, faster-growing segments.
Streaming and Digital Publishing Fuel Subscription Growth
Digital subscription revenues grew around 12% in FY26, driven by strength in Nine's mastheads and Stan streaming service Kalkine. Stan and digital publishing are now core profit drivers, with management expecting stronger standalone growth from both in the year ahead.
Nine expanded its monetization playbook by broadening content licensing deals for AI applications, including a new agreement with Microsoft Kalkine. This diversifies revenue beyond traditional advertising and subscriptions, tapping into Nine's archive of media assets.
Dividend Boost and Improved Financial Footing
Nine declared an interim dividend of AUD 0.03 per ordinary share, with ex-dividend on September 10 and payment on October 22 TipRanks. The payout sparked buying interest in the stock and reinforced management's confidence in cash generation and balance sheet stability.
The company ended the period with $658 million of net debt and leverage around 1.7x, a stable position that supports both the dividend and ongoing investments in growth assets Kalkine. Nine expects to exceed its $160 million three-year cost-reduction target, offsetting industry headwinds.
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