The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price is in the spotlight after the company updated investors with fresh FY26 trading insights, highlighting strong digital subscription growth at Nine Publishing and ongoing EBITDA momentum at Stan.
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What did Nine Entertainment report?
- Nine Publishing Q1 digital subscription revenue grew in the mid-teens (%) and continues into Q2
- Stan's FY26 EBITDA and revenue are both expected to grow, boosted by the Premier League deal
- Q1 FY26 Total TV advertising revenues fell mid-high single digits (%) year-on-year amid tougher ad markets
- FY26 Total Television reported costs now forecast to decline in the mid-single digits (%)
- More than $100 million in underlying cost reductions expected across FY26 and FY27, above prior guidance
- Q1 audio advertising revenues were weaker than hoped
What else do investors need to know?
Nine flagged that the TV advertising market remains soft and short for the run into Christmas, impacting revenues in both September and October. On the cost side, the company has ramped up its focus on efficiencies, exceeding its prior cost-out targets, despite the absence of the Paris Summer Olympics that had previously boosted numbers.
Stan, Nine's streaming service, is benefiting from new sports content, helping expected revenue growth outpace the higher costs. On audio, the company said Q1 advertising revenues were below expectations, and it's working on short-term cost actions to soften the impact.
What's next for Nine Entertainment?
Management expects further EBITDA growth in the first half of FY26 compared to H1 FY25, thanks to additional cost savings and the end of the Ben Roberts-Smith appeal costs. Nine says its digital and subscription arms continue to help buffer the softness in advertising, supporting its broader group growth strategy.
Over the medium term, Nine is committed to the structural changes of its Nine2028 plan, which aims to further leverage its data and content assets. The group is focusing investment into its core businesses, while keeping a close eye on costs.
Nine Entertainment share price snapshot
Nine Entertainment shares have risen 3% over the past 12 months, trailing the S&P/ASX 200 Index (ASX: XJO) which has increased 8% over the same period.
