Nine Entertainment Company has recently revealed its financial performance for the first half of the 2025 financial year, showcasing operational resilience amid challenging market conditions. Despite facing difficulties due to the declining advertising market and the cessation of its commercial deal with Meta, Nine reported revenue growth driven by its digital and subscription services.
According to Nine Entertainment's Chair, Catherine West, "We have continued to perform well operationally, whilst simultaneously strengthening our strategic position and implementing our cultural reset." The company's revenue reached $1.39 billion, reflecting only a slight increase of 1% year-over-year, yet it still indicates the company’s ability to weather economic downturns.
Financially, Nine’s net profit after tax fell significantly, down 25% to $112.2 million, which speaks to the pressures on profit margins during this period. The company’s Group EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also dropped by 15%, totaling $268 million for the half-year, impacted by softer broadcast advertising and losses from the discontinued agreement with Meta.
Nonetheless, there were areas of growth for Nine. The company noted improvements across its streaming and broadcast sectors, particularly through its platform 9Now, which successfully captured market share amid the turbulent advertising environment. Total television revenue saw a slight increase of 2%, with streaming growth helping to counterbalance the decline from traditional broadcast ad revenue.
During this challenging period, Nine has also initiated strategic cost-cutting measures. Acting CEO Matt Stanton announced plans for over $100 million in new cost reductions, building on $35 million of savings already achieved. The company aims to surpass its initial target of $50 million for the financial year, with additional restructuring efforts anticipated over the next couple of years. Stanton commented, "I am proud of the way our people have responded, with strong engagement and an overwhelming spirit of constructive optimism."
The media company has expressed intentions to undergo significant restructuring to optimize its cost base and strategic positioning, particularly following the fallout from allegations of toxic workplace culture reported last year. The independent review of workplace practices revealed troubling testimonials about harassment and intimidation among staff members, prompting Nine to accelerate its cultural transformation initiatives.
Looking to the future, Nine anticipates revenue opportunities, with plans to grow through content creation, subscription services, and advertising innovations. The company projects positive growth trends for its TV ad revenue in the coming quarters, reflecting expectations for mid to high single-digit increases.
Despite the tough advertising climate, Nine Publishing, which includes popular outlets like The Sydney Morning Herald, experienced digital subscription revenue growth of approximately 15%. Nevertheless, print advertising revenues took significant hits, with declines of 14% for print and 4% for digital ads, as the general softness of the advertising market continues to pose challenges.
The company’s property listings business, Domain, remains strategically important to Nine, especially following its recent $2.7 billion takeover bid from the US real estate giant CoStar. The company stated, "Domain remains a key part of Nine's long-term growth strategy." Stanton at Nine underlined the importance of maintaining this relationship with Domain as they navigate the changing tides of media and advertising.
Overall, Nine Entertainment is maneuvering through rocky economic waters, amid cost-cutting measures and restructuring to sustain profitability. The company’s focus on digital transformation and strategic innovation may provide the pathway it needs to stay relevant and competitive within Australia's media sector.