Shares in Nine Entertainment Co Holdings Ltd (ASX: NEC) powered to 52-week highs in today's trading session after the media titan reported its FY25 results.
The company revealed a mixed set of numbers headlined by revenue growth and a standout performance for its Stan streaming service.
In turn, shares in the ASX 200 media stock are changing hands at $1.83 at the time of writing, marking a 7% jump from Tuesday's close.
This surge has now delivered a 36% return for investors over the past twelve months.
For context, the All Ordinaries Index (ASX: XAO) is up by 11% during the same time.
Let's take a closer look at how the year played out for this ASX 200 media stock.
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FY25 results snapshot
Revenue of $2.68 billion inched up by 2% from the previous year.
However, operating earnings (EBITDA) of $486.1 million declined by 6%.
Net profit after tax (NPAT) also dipped by 10% to $194.4 million.
Similarly, net profit after tax and minorities of $166.1 million fell by 12%.
The group also reported fully diluted earnings per share (EPS) of 10.5 cents per share. This outcome marks a 10% drop from FY24.
On the bottom line, Nine ended the year with consolidated net debt of $583.7 million. This compares favourably with $640 million twelve months ago.
Management also highlighted some $80 million in cost efficiencies across the year. It expects to deliver a total annualised saving of $150 million by the end of FY27.
The ASX 200 media stock also declared an FY25 dividend of 4.0 cents per share, fully franked.
In addition, shareholders are to be rewarded with a fully franked special dividend of 49.0 cents per share, thanks to the divestment of Nine's controlling stake in real estate website Domain Holdings Australia Ltd (ASX: DHG).
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It appears that Nine's performance improved in the second half of FY25 (H2 FY25).
Here, EBITDA jumped by 8% from the previous corresponding period, driven by growth in the company's Total TV, Stan, and Publishing divisions.
Management pointed to audience growth across streaming and broadcast television, with Nine's assets beating all rivals to attract about 20% of total TV screen time.
Elsewhere, the group's Olympic Games coverage was profitable and cash flow positive for the ASX 200 media stock.
Excluding the Olympics, Nine's Total TV audiences in FY25 grew by 2%. However, in the second half of FY25, the company recorded 6% growth in this metric from the previous corresponding period.
Streaming revenue through 9Now also grew by 19% to reach $225 million in FY25.
Overall, the company generated $1.16 billion in revenue for its Total TV division, up by 3% from FY24. However, EBITDA of $159.7 million fell by 23%.
Meanwhile, streaming service Stan saw revenue lift by 10% for the year to reach $491.8 million.
Notably, EBITDA for Stan clocked in at $60.3 million, up by 31% from twelve months prior.
However, revenue for Nine's Publishing business of $525.8 million dipped by 6%, with EBITDA of $152.7 million coming in flat.
Its smaller Audio division reported a small decline in revenue to $101.2 million.
Finally, the company is set to pocket $1.4 billion in cash proceeds from the sale of its 60% stake in Domain.
In FY25, Domain generated $413.3 million in revenue and $146 million in EBITDA for the group.
What next for this ASX 200 media stock?
Nine is guiding for continued growth in EBITDA for its core digital and subscription assets in H1 FY26.
That said, management cautioned that conditions in the advertising market for H2 FY26 remain unclear.
The company also expects another year of growth for Stan, fuelled by its recent broadcast deal for English Premier League soccer.
More broadly, Nine plans to focus on organic investment opportunities to drive growth in FY26 and beyond.
