Nine Entertainment has posted higher full-year earnings and flagged a deeper shift toward digital and outdoor media, with chief executive Matt Stanton describing the year as transformative following a series of divestments and the acquisition of outdoor advertising company QMS.

Financial results

Net profit from continuing businesses rose 7 per cent to $142.4 million for the year to June 30, while revenue grew 3 per cent to $2.19 billion, as reported by multiple outlets. Underlying earnings before interest, tax, depreciation and amortisation jumped 17 per cent to about $379 million. The company also reported net profit after tax and amortisation up 11 per cent to $147.2 million, with earnings per share of 9.3 cents, also up 11 per cent, according to The Motley Fool Australia.

On a consolidated basis, which includes results from divested operations, Nine posted a bottom-line net profit of $510.6 million, up from $133.3 million the previous year, as reported by The Canberra Times.

The company declared a final dividend of 3.0 cents per share, unfranked, payable 22 October 2026. Management indicated future dividends are likely to remain in the 60–80 per cent payout range, though probably unfranked.

Portfolio reshaped

Over the past year, Nine sold its stakes in Domain, Nine Radio, NBN, Darwin, Pedestrian and Future Women, and acquired QMS Outdoor, according to The Motley Fool Australia. The company is now structured around three divisions: publishing, streaming and broadcast, and outdoor advertising, as reported by smh.com.au.

Stanton said the moves had transformed the business. "The business has been completely transformed into three key divisions," he told smh.com.au. He noted that free-to-air television now accounts for less than 25 per cent of revenue and earnings before interest, tax, depreciation and amortisation, and that the company's biggest growth asset is QMS.

Streaming, digital publishing and outdoor media are expected to contribute more than 60 per cent of revenue and 70 per cent of earnings in the coming fiscal year, according to both smh.com.au and The Motley Fool Australia. The Canberra Times echoed that streaming and broadcast divisions are expected to account for more than 60 per cent of revenue in the new financial year.

Division performance

Stan, Nine's streaming service, saw earnings grow 34 per cent to $80.6 million, though its paying subscribers dipped from 2.4 million to 2.3 million, as reported by smh.com.au. The growth was helped by its English Premier League deal and a $5 price rise. Stanton declined to comment on reports that Nine is close to extending that deal through 2034.

In the publishing division, underlying earnings fell 3.9 per cent to $149.9 million, while the streaming and broadcast arm generated a 1.8 per cent increase to $214.1 million, according to The Canberra Times. Total television revenue fell 9 per cent to $1.03 billion, with earnings down 12 per cent to $133.5 million, as reported by smh.com.au.

QMS contributed $54.5 million in earnings during its first three months under Nine ownership, according to smh.com.au, while The Motley Fool Australia put the figure at $55 million. QMS had revenue of $295.4 million on a pro-forma basis, up 15 per cent, per smh.com.au.

Digital subscriptions and AI deals

Digital subscription revenue grew 15 per cent, according to smh.com.au, while total paying subscribers for publishing stayed flat at 510,000. The Motley Fool Australia reported digital subscription revenues grew 12 per cent, underpinned by strength in mastheads and Stan. The two figures reflect different measures of digital subscription growth.

Nine also broadened content licensing deals for AI applications, including an agreement with Microsoft, as reported by The Motley Fool Australia.

Outlook and cost cuts

Stanton said the group was still eyeing cost cuts and expected to exceed its target to remove $160 million in costs toward June 2027. About 35 staff will be impacted by redundancies in the publishing division, according to smh.com.au, and Stanton refused to rule out further job cuts.

Looking ahead, Nine expects further revenue and earnings growth in FY27, with QMS integration expected to deliver cost synergies and double-digit earnings growth from outdoor, according to The Motley Fool Australia.

Despite the results, Nine's share price has declined about 42 per cent over the past 12 months, as noted by The Motley Fool Australia.