Nine shares jump as FY25 results beat expectations
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More news: Shares in Nine Entertainment jumped more than 8% in early trading on Wednesday, after the company reported a 2% revenue lift for FY25, beating analyst estimates, and ongoing cost-cutting.
Shares were trading up 8.21% at $1.84 at 10:47am AEDT.
Jarden analysts called it a "strong result relative to expectations" and have an overweight rating on the stock with a price target of $1.80.
What they said: "We were concerned consensus TV estimates were too high – TV was the only segment to miss consensus (-3%) but was 6% ahead of JARDe on a better-than-expected revenue outcome," Jarden said.
"Looking forward, Nine has highlighted that ad market visibility is limited, however, are confident EBITDA will grow in 1H26E."
Nine eyes $150m in annualised cost cuts by 2027 amid soft ad market
The news: Nine Entertainment has reported a 6% earnings dip and flagged ongoing cost-cutting activity as the company wrestles with ongoing softness in the advertising market.
The numbers: Nine reported a 2% lift in group revenue to $2.67 billion for the 2025 fiscal year, beating analyst estimates, according to Visible Alpha data.
Group earnings before interest taxes depreciation and amortisation for the year was $486.1 million, down 6% on the previous year, also beating analyst estimates. Net profit after tax was $194.4 million, down 10% or $22 million on the previous year.
Nine declared a final dividend of 4 cents per share, and a special dividend of 49 cents per share, both fully franked.
The context: The TV, streaming and publishing company said it’d delivered cost efficiencies worth $80 million over the year, of which $60 million is “ongoing”.
The company said it had committed to a further $90 million in a bid to target $150 million in annualised savings by the end of the 2027 fiscal year.
Nine said it had delivered earnings growth of 8% in the second half of the 2025 fiscal year, compared to the previous year, across TV, Stan and publishing.
Nine issued guidance forecasting earnings growth through the first half of 2026, but noted “limited visibility” in the advertising market in the second half of next year.
Advertising sales from the Olympics are set to impact the first quarter of 2026, Nine said in a statement to the market. But in the first “clean” month of September, Nine is expecting total TV revenue to be broadly flat year-on-year.
What they said: “I am pleased with Nine’s performance in FY25, particularly in the second half, where we recorded growth in profit in both streaming and broadcast and publishing — driven by strong audience performance and firm cost management,” Nine CEO Matt Stanton said in a statement.
“At the start of 2025, we accelerated our program of increased operating effectiveness through our strategic transformation program, Nine 2028, generating additional cost savings in FY25.
"We also rolled out our refocused operating model aligning the business across three key verticals — Streaming and Broadcast; Publishing; and Marketplaces. We restructured our executive team, bringing a great depth of talent into our core businesses and made strong progress against our cultural transformation including the completion of four further Cultural Action Plan recommendations.
“In May, Domain reached an agreement with CoStar, which resulted in the sale of our 60% stake in Domain at a price which was a significant premium to the pre-bid Domain share price. After much deliberation, we approved an offer that was in the best interests of Nine shareholders, and appropriately reflected the strategic value of our controlling interest in Domain.
"We are pleased with the value this has released, enabling us to return significant capital to our shareholders on a tax effective basis, as well as strengthen our own balance sheet. We believe that Nine is the natural media partner for marketplace content and are continuing to explore opportunities in this space."
The source: ASX
