S&P/ASX 200 Index (ASX: XJO) stock Nine Entertainment Co. Holdings Ltd (ASX: NEC) is charging higher today.
Shares in the media and entertainment company closed yesterday trading for $1.63. In morning trade on Tuesday, shares are changing hands for $1.69 apiece, up 3.7%. That sees the Nine share price up an impressive 35.8% year to date.
For some context, the ASX 200 is down 0.7% today and up a slender 0.6% so far in 2025.
Today's outperformance follows the release of Nine Entertainment's half-year results for the six months to 31 December (H1 FY 2025).
Here are the highlights.
ASX 200 stock lifts on results
- Revenue of $1.39 billion, up 1% from H1 FY 2024
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $268 million, down 15% year on year
- Net profit after tax (NPAT) of $112 million, down 25% year on year
- Fully franked interim dividend of 3.5 cents per share, down 13% from last year's interim payout
What else happened with Nine Entertainment over the half year?
Nine said the 15% drop in earnings over the half-year came amid weaker economic and advertising market conditions and the loss of its Meta revenues.
The six-month period did see the ASX 200 stock grab national attention with its Olympic coverage. And the company reported growth in both its streaming and broadcast audiences (Nine and Stan) across 2024.
Property listings company Domain Holdings Australia Ltd (ASX: DHG) was a strong performer for Nine over the half, with 15% growth in its EBITDA contribution to Nine.
As you may recall, last week, Domain received an unsolicited, non-binding indicative takeover proposal from CoStar Group, Inc. (NASDAQ: CSGP) for $4.20 cash per share.
Nine reiterated today that Domain is of strategic importance to its media ecosystem and long-term growth strategy. "As Domain's controlling shareholder, Nine will consider the CoStar proposal with a focus on the best interests of Nine shareholders," the company stated.
What did management say?
Commenting on the half-year results helping to boost the ASX 200 stock today, Nine chair Catherine West said, "In a challenging market environment, we have continued to perform well operationally, while simultaneously strengthening our strategic position and implementing our cultural reset."
Nine acting CEO Matt Stanton added:
Operationally, we were generally pleased with the performance of our portfolio in the half. In particular, at Stan, subscriber numbers exceeded our expectations, underpinning 16% growth in EBITDA whilst at Publishing, digital subscription revenues at our mastheads grew by 15% (ex the impact of Meta and Google), with the team also doing a great job with cost efficiencies offsetting much of the impact of the Meta withdrawal.
As for the takeover bid for Domain, Stanton said, "Domain continues to be a key part of Nine's media ecosystem and long-term growth strategy."
What now for the ASX 200 stock?
Looking at what could impact the ASX 200 stock in the months ahead, management expects Nine will undergo further restructuring into H2 FY 2025 and FY 2026.
The company said the changes will be designed to ensure its optimal positioning into the future while maximising the efficiency of its cost base. Nine said it expects further cost efficiencies of more than $100 million through the end of FY 2027. $10 million to $20 million of cost efficiencies are expected to be realised in FY 2025, in addition to the previous guidance of $50 million.
On the revenue front, the ASX 200 stock said the next few months will see it progress with plans to accelerate revenue growth from its "unique suite of assets", through additional content, subscription, and advertising opportunities.
With today's intraday gains factored in, the Nine share price is up 24% over the past six months.
