ASX media stock Nine Entertainment Co. Holdings Ltd (ASX: NEC) is pushing higher on Tuesday, rising 2.1% to 96 cents in afternoon trade.
That's a positive move for a stock that has struggled recently. Nine shares are still down around 14% year to date and have fallen roughly 35% over the past 12 months. The ASX media stock is significantly underperforming the S&P/ASX 200 Index (ASX: XJO), which is up about 7% over the same period.
So, what's behind today's lift?
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Improving momentum, revenue growth
The gain follows the release of Nine's third-quarter update. The ASX media stock revealed improving momentum across several parts of the business, particularly in digital and streaming.
For the three months, group revenue from Total Television grew in the low single digits, while audiences rose 8% across total viewers and 10% in the key 25–54 demographic. That suggests Nine is continuing to strengthen its reach, even in a challenging advertising environment.
One of the standout performers was Nine Publishing. Digital subscription revenue jumped 15% during the quarter. It extended its run of double-digit growth into the fourth quarter. This reflects ongoing demand for premium digital content and the company's shift toward subscription-led models.
Streaming platform Stan also delivered strong results, reporting further EBITDA growth in the second half and maintaining the positive momentum seen earlier in the year.
Completed QMS Media acquisition
Another key development was the completion of Nine's acquisition of QMS Media. The deal marks a significant step in Nine's push to diversify beyond traditional media and expand its presence in digital and outdoor advertising.
QMS Media reported revenue growth of around 15% in the third quarter, supported by new contract wins in major markets such as Sydney and Auckland. The business is expected to provide higher-margin revenue streams and strengthen Nine's overall earnings mix over time.
The update also highlighted early progress in integrating QMS into Nine's broader platform. Management of the ASX media stock is focused on unlocking synergies and expanding its cross-channel advertising capabilities.
Soft advertising market
Despite these positives, the broader advertising backdrop remains soft. Market conditions are expected to stay challenging heading into the fourth quarter. Economic uncertainty and the absence of the boost seen during last year's federal election cycle will affect the results.
However, the ASX media stock is continuing to focus on cost control, targeting meaningful reductions in television expenses while still investing in content and technology.
The company is also exploring new revenue streams. Nine is looking at licensing content for corporate AI applications and preparing for potential regulatory changes tied to digital news monetisation.
Foolish Takeaway
Overall, Nine's latest update suggests its strategic shift toward digital, streaming, and higher-margin segments is starting to gain traction.
While the ASX media stock still faces headwinds, today's share price rise indicates investors are encouraged by signs of progress, particularly as Nine builds out a more diversified and digitally focused media business.
