Nine Entertainment Co. has reported a significant decline in revenue for the six months ending December 31, 2025, amidst a challenging advertising market and the ongoing struggles of the free-to-air television sector. The media giant’s revenue fell to $1.14 billion, an 18.5% decrease from the $1.4 billion reported in the same period last year. However, the company’s Group EBITDA saw a 6% increase, reaching $201 million.
Despite the downturn, Nine maintained a 40.3% share of total television revenues for the half, although this figure represents a 9.8% decline compared to the previous year. The company attributed part of this decline to the Paris Olympics, which had boosted revenues in the comparable period. The most significant revenue drops were observed in Nine’s broadcast arm, which includes the Nine television network and 9Now.
Stan’s Impressive Performance
In contrast to the broader company’s challenges, Nine’s streaming service, Stan, emerged as a standout performer. Stan reported a 15% increase in revenue, driven primarily by a rise in subscription prices. This growth was supported by strong performances in Stan Sport and the introduction of the Premier League, which led to a 40% year-on-year increase in average sport subscribers.
Stan’s success is further highlighted by its record EBITDA of $37 million, marking a 24% increase. The service also saw a 6% rise in average revenue per user (ARPU), bolstered by popular entertainment offerings such as “Love Island,” “Outlander: Blood of my Blood,” and “The Hunting Wives.”
Strategic Developments and Cost Management
Nine’s Chief Executive Officer, Matt Stanton, emphasized the company’s strategic and operational achievements amidst a challenging market. “Nine’s second consecutive half of EBITDA growth was achieved against the backdrop of a soft advertising market – with growth from Stan, the metro mastheads, and the AFR, as well as a resilient result from Total TV,” Stanton stated. “Our business continues to be defined by strong audience reach and engagement, coupled with disciplined cost management.”
“Over the past six months, there have been material strategic and operational achievements that will cement Nine’s path for the future,” added Stanton.
Nine has implemented significant restructuring efforts, achieving approximately $43 million in cost efficiencies, with $32 million of these savings expected to continue. The company remains on track to meet its three-year target of $160 million in cost savings by the end of FY27.
Challenges and Opportunities in Total Television
The Total Television segment, encompassing both broadcast and streaming, faced a 14% decline in reported revenue. However, this was largely impacted by the absence of the Paris Olympics in the current reporting period. Excluding the Olympic effect, Nine recorded an 8.2% increase in audiences in the key 25-54 demographic and a 5.3% rise in total viewers.
Despite the revenue challenges, Nine’s audience numbers have shown resilience, with a 9.2% growth in the 25-54 demographic and a 6.4% increase in total viewers in the December half, excluding the Olympic weeks. The company’s streaming platform, 9Now, also experienced growth in daily active users, increasing by 22%.
Future Outlook and Strategic Focus
Looking ahead, Nine remains optimistic about its Total Television segment, expecting revenues to remain stable in the upcoming quarter. The company is focusing on cost-effectiveness across its streaming and broadcast operations, anticipating mid-single-digit percentage reductions in Total Television costs for FY26 compared to FY25.
Stan is expected to continue its strong performance, with revenue growth projected to offset increased costs, particularly those associated with the Premier League. The service’s robust content slate for the second half of the fiscal year includes high-profile titles such as “Power Book IV: Force” and “MAFS: After the Dinner Party,” which recently set a record for single-episode subscription drivers.
Stan Sport’s upcoming events, including the Australian Open and UEFA Champions League finals, are expected to further bolster its subscriber base and revenue growth.
As Nine navigates the evolving media landscape, its strategic focus on audience engagement, cost management, and digital growth positions it to capitalize on emerging opportunities while addressing the challenges posed by a shifting advertising market.
