Nine Entertainment Co. has reported a significant decline in revenue for the six months ending December 31, 2025, as the company grapples with a downturn in advertising and challenges in the free-to-air television market. The media giant’s revenue fell to $1.14 billion, an 18.5% drop from the previous year’s $1.4 billion. Despite this, Nine’s Group EBITDA rose by 6% to $201 million, showcasing resilience in certain areas of the business.
The decline in revenue was most pronounced in Nine’s broadcast division, heavily impacted by the underperformance of the Nine television network and its streaming service, 9Now. The company recorded a 40.3% share of total TV revenues for the half-year, a decrease of 9.8% compared to the same period last year, which included the Paris Olympics, a major event that had boosted viewership and advertising revenue.
Stan’s Impressive Growth Amidst Challenges
While Nine’s traditional broadcasting struggled, its streaming service Stan emerged as a standout performer. Stan’s revenue grew by 15%, driven primarily by an increase in subscription prices and a robust lineup of sports and entertainment offerings. This growth was a bright spot in Nine’s financial results and highlighted the shifting dynamics within the media landscape.
Stan’s success was underpinned by the popularity of Stan Sport and key sports contracts, such as the Premier League, which significantly boosted average sport subscribers by 40% year-on-year. The platform’s overall average revenue per user (ARPU) also saw a 6% increase, reflecting its strategic focus on premium content and sports rights.
Financial Highlights and Strategic Moves
- EBITDA growth: Nine’s EBITDA grew by 6% compared to the previous period, aligning with guidance provided in August 2025. This was supported by strong performances from Stan and Nine’s mastheads, alongside lower corporate costs.
- Group EBITDA margin: The margin increased from 16.2% to 18.2% on a continuing business basis, with growth observed across all business units.
- Subscription revenues: Underlying subscription revenues grew by 13%, driven by gains at the metro mastheads, the Australian Financial Review (AFR), and Stan.
- Digital revenue: Digital revenue growth in mastheads continued to outpace the decline in print, marking a significant inflection point.
- Cost efficiencies: Nine achieved approximately $43 million in cost efficiencies, with $32 million being ongoing, as part of its restructuring efforts.
- Dividend declaration: An interim dividend of 4.5 cents per share was declared, unfranked and payable on April 23, 2026.
Context and Industry Challenges
The announcement comes as Nine navigates a challenging advertising market, exacerbated by the absence of major events like the Olympics in the current period. According to Nine CEO Matt Stanton, the company has managed to achieve its second consecutive half of EBITDA growth despite these headwinds. “Our business continues to be defined by strong audience reach and engagement, coupled with disciplined cost management,” Stanton noted.
Historically, the media industry has faced cyclical challenges tied to economic conditions and technological shifts. The rise of digital platforms and streaming services has altered consumer habits, leading to a decline in traditional TV viewership and advertising revenue. Nine’s strategic focus on digital transformation and cost management reflects broader industry trends aimed at adapting to these changes.
Expert Opinions and Future Outlook
Media analysts suggest that Nine’s ability to maintain a strong digital presence through platforms like Stan will be crucial for its future growth. The company’s investment in sports rights and original content positions it well to compete in an increasingly crowded streaming market. However, the ongoing volatility in advertising revenue remains a concern.
Looking ahead, Nine expects Total Television revenues to stabilize in the coming quarters, with strong audience engagement reported for events like the Australian Open and the Winter Olympics. The company remains focused on cost-effectiveness across its streaming and broadcast operations, aiming to offset any revenue challenges with strategic investments in content and technology.
“Nine’s broadening exposure to the VOD advertising market, through both Stan and the sales agreement with HBO Max, stands the Group in good stead going forward.”
Conclusion and Strategic Path Forward
As Nine continues to navigate the evolving media landscape, its focus on digital growth and cost efficiency will be key to sustaining its market position. The company’s strategic investments in streaming and sports content, alongside its disciplined approach to cost management, are expected to drive future growth and resilience.
With the media industry undergoing rapid transformation, Nine’s ability to adapt and innovate will determine its success in the coming years. The company’s performance in the next financial period will be closely watched as it seeks to balance traditional broadcasting challenges with the opportunities presented by digital platforms.
