Shares in Nine Entertainment Co. Holdings (ASX: NEC) are up 4% at the time of writing after the media group announced its second consecutive half of EBITDA growth, driven by strong subscription momentum at its streaming platform Stan and resilient performance from its metro mastheads including the Australian Financial Review.
Despite revenue softness in broadcast television, investors appeared encouraged by profit growth, margin expansion and improving balance sheet strength following the sale of Domain.
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What did Nine report?
On a continuing business basis, Nine reported revenue of $1.06 billion for the six months to 31 December 2025, down 5% on the prior corresponding period.
However, Group EBITDA before specific items rose 6% to $192 million, with the EBITDA margin expanding from 16% to 18%. Net profit after tax (before specific items) increased 30% to $95 million, while statutory net profit rose 42% to $81 million.
Earnings per share lifted 30% to 6.0 cents. The board declared an interim dividend of 4.5 cents per share, unfranked.
Nine ended the half in a net cash position of $158 million following the Domain disposal, a significant shift from prior leverage.
What else do investors need to know?
The standout performer was Stan.
Stan revenue increased 15% to $282.7 million, underpinned by strong subscriber growth and a 6% lift in average revenue per user (ARPU). Paying subscribers are now around 2.4 million. Importantly, average Stan Sport subscribers rose 40% year-on-year, driven primarily by the addition of the English Premier League and FA Cup rights.
Stan EBITDA rose 24% to $36.6 million, even as sport-related costs increased due to the new Premier League contract.
In contrast, Total Television revenue fell 14% against a strong Olympic comparison and a soft advertising market. However, disciplined cost management meant Total TV EBITDA was broadly flat at $99 million, with margins improving.
Publishing delivered stable EBITDA of $73.7 million. Digital subscription revenue grew 17%, with total subscribers exceeding 516,000 and ARPU up 14%, more than offsetting print declines.
Across the group, around $43 million of cost efficiencies were delivered during the half, with approximately $32 million ongoing.
What did management say?
CEO Matt Stanton said the result reflected strong audience reach, growing subscription revenue and disciplined cost management despite macro uncertainty.
He highlighted strategic progress including the announced acquisition of outdoor media business QMS and the sale of Nine Radio, positioning Nine toward higher-growth digital assets.
What's next for Nine?
Nine expects Total TV revenue in the third quarter to be broadly flat against a strong prior-year comparator. Strong EBITDA growth is expected to continue at Stan, with subscription growth anticipated to more than offset higher sport costs.
With digital and subscription businesses now driving a growing share of earnings, investors appear to be backing Nine's strategic pivot toward streaming, publishing and outdoor growth platforms.
