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Group Revenue: $1.1 billion for the six months to December. Group EBITDA: $201 million, up 6% on PCP. Net Profit After Tax: $95 million, up 30% on PCP. Earnings Per Share (EPS): $0.06, up 30%. Interim Dividend: $0.045 per share. Group EBITDA Margin: Increased by nearly 2 percentage points to 18.2%. Subscription Revenue Growth: 13% across the half. Cost Reduction: $43 million removed, $32 million on an ongoing basis. Net Debt: Reduced to $158 million in cash as of December 31, 2025. Cash Flow from Operating Activities: $96 million for the six months to December 31. Total TV EBITDA: $99 million, steady in a tough advertising market. Stan Revenue Growth: 15%, with a record half-one EBITDA of $37 million, up 24%. Publishing Revenue: $262 million, with strong digital revenue growth. Drive Marketplace Revenue Growth: 120% year-on-year. Masthead EBITDA Growth: $5 million to $78 million.

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Release Date: February 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive 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.

Negative Points

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.

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Q & A Highlights

Q: Can you confirm the FY26 NPAT range and its impact on EPS accretion for the outdoor deal? A: Martyn Roberts, CFO, explained that the NPAT range is expected to be between $140 million and $150 million. The EPS accretion is calculated based on $105 million of EBITDA for calendar year '26, with D&A at $50 million and after-tax interest costs of $35 million. The synergies are expected to add $20 million after-tax, leading to low-single-digit EPS accretion pre-synergies.

Q: What is the outlook for the TV market in Q4, considering Southern Cross's guidance and SMI data? A: Matthew Stanton, CEO, stated that it's too early to predict Q4, but Q3 is expected to be better than Q2 due to a strong content slate. The market feels better in Q3, but Q4 remains uncertain due to last year's election impact and the current advertising environment.

Q: How does Nine Entertainment view the impact of AI on its business, and are there opportunities for LLM deals? A: Matthew Stanton expressed a positive outlook on AI, emphasizing the company's focus on premium content. Nine has signed a couple of LLM deals and sees a strong pipeline of opportunities, both locally and globally, which are expected to be net positive for the company.

Q: What factors contributed to the strong Q3 performance in Total TV, and how much was due to the Olympics and Australian Open? A: Matthew Stanton attributed the strong Q3 performance to major content pillars like the Australian Open, Olympics, MAFS, and NRL. The Olympics audience exceeded expectations, and the company plans to adjust future scheduling to optimize content delivery.

Q: Can you discuss the dynamics behind the slight reduction in entertainment subscriptions and the impact of the Winter Olympics on sports subscriptions? A: Matthew Stanton noted that while entertainment subscriptions remained stable, sports subscriptions saw significant growth, driven by the Premier League and the Winter Olympics. The ARPU growth was strong due to conversions from entertainment to sports packages.

Q: What is the structure and potential revenue from Publishing deals with corporates for LLMs? A: Matthew Stanton explained that these are licensed deals for Nine's content to train corporate models. The revenue potential varies by sector and organization size, and while specifics weren't disclosed, the company sees it as a promising revenue stream.

Q: How is Nine Entertainment progressing with the QMS acquisition and 9Now's revenue performance? A: Matthew Stanton mentioned that the QMS acquisition is not yet complete, but discussions with advertisers are positive. For 9Now, the Olympics significantly impacted revenue, but the company is expanding its digital video market presence with initiatives like Stan ads and HBO Max deals.

Q: What are the drivers behind the Publishing revenue growth, and how are ad revenue trends impacting it? A: Matthew Stanton highlighted strong digital subscription growth offsetting print declines. While print advertising remained robust, digital display advertising underperformed, and the company is working on improving this area.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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