Nine Entertainment Posts 2% Revenue Growth, 6% EBITDA Decline in FY25
Nine Entertainment reported a 2% revenue rise in FY25, powered by digital and subscription growth, while navigating EBITDA pressures and completing a major Domain stake sale.
- 2% revenue growth to A$2.68 billion despite 6% EBITDA decline
- Digital revenues reach 47% of total, led by 10% subscription growth
- Completed $1.4 billion sale of 60% stake in Domain, triggering special dividend
- Cost savings exceed $80 million with $60 million recurring reductions
- Streaming subscriber base at ~2.5 million, boosted by sports content
Strong Digital Momentum and Subscription Growth
Nine Entertainment Co. delivered a mixed but forward-looking FY25 result, with total revenue climbing 2% to A$2.68 billion. This growth was underpinned by a 6% increase in digital revenues, which now constitute nearly half of the company’s total income. Subscription revenues rose 10%, reaching 32% of group revenue, reflecting robust consumer demand for streaming and digital content.
The company’s streaming platform Stan expanded its paying subscriber base to approximately 2.5 million, driven notably by sports content such as Stan Sport and the acquisition of Premier League rights. This focus on premium sports programming has been a key driver of revenue and engagement growth.
Domain Sale and Capital Management
A major highlight was the completion of Nine’s sale of its 60% stake in Domain for A$1.4 billion net of tax. This transaction crystallised significant shareholder value and enabled the declaration of a fully franked special dividend of 49 cents per share. Post-sale, Nine’s balance sheet remains strong and flexible, positioning the company well for future investments and capital management initiatives.
Management signalled disciplined capital allocation, focusing on sustainable growth areas such as consumer platforms, advertising technology, and AI-driven product development. The company also reaffirmed its dividend policy, targeting a payout ratio of 60-80% of net profit after tax, excluding specific items.
Cost Discipline and Operational Efficiency
Despite revenue growth, group EBITDA declined 6% to A$486 million, impacted by higher costs in streaming sports and other areas. However, Nine successfully removed over A$80 million in costs during FY25, with approximately A$60 million classified as ongoing savings. The company remains on track to achieve its three-year cost efficiency target of A$150 million in annualised savings by FY27.
Operational improvements include newsroom transformation with AI integration, cross-platform content alignment, and enhanced monetisation of digital advertising. The relaunch of Nine’s operating model aims to strengthen core businesses in streaming, broadcast, publishing, and marketplaces.
Audience Reach and Market Position
Nine’s cross-platform audience reach remains formidable, with total television audiences growing and digital network reach hitting 15.6 million Australians. The company’s metro media subscription revenues continue to grow digitally, offsetting declines in print. Notably, Nine led in total minutes consumed on connected TVs, reinforcing its leadership in the evolving media landscape.
Looking ahead, Nine expects continued EBITDA growth in the first half of FY26, supported by strong subscription trends and disciplined cost management. However, the company cautions about limited visibility on advertising market conditions in the second half, reflecting broader economic uncertainties.
Bottom Line?
Nine’s FY25 results underscore a strategic pivot to digital and subscription growth, balanced by cost discipline and a landmark Domain sale, setting the stage for cautious optimism amid advertising market uncertainties.
Questions in the middle?
- How will Nine navigate potential advertising revenue volatility in H2 FY26?
- What impact will ongoing investments in AI and ad tech have on future margins?
- Will the company pursue further acquisitions or divestments to diversify revenue?
