Credit: QMS
Nine has scaled back its earnings forecast for QMS, with the outdoor business now forecast to deliver $86 to 88 million in earnings this year, short of the $92 million flagged when the $850 million acquisition closed in March.
Nine pointed to currency headwinds between the NZ and Australian dollar, a softer ad market, delays under the Auckland Transport contract and impacts on large format billboards from the City of Sydney contract for the revision.
The figures came at an investor briefing on Monday, Nine's first detailed QMS update since the deal closed.
The revised figure still represents growth of 12 to 15% on last year's result of $76.7 million, on net revenue of $261.2 million. Nine said its $20 million cost synergy target remains on track, with roughly half to land by 2027.
The briefing was Nine's first public announcement on how the QMS integration will work commercially, using audience data from 9Now, Stan and its publishing mastheads to target audiences across QMS screens.
Nine's full year result is due August 26.
QMS's Australian market share has grown to 15% from 10% over six years, driven by contract wins including City of Sydney street furniture, Transport for NSW and Vicinity Centres.
In New Zealand, share has grown to more than 30% from 21% since 2024, driven by the Auckland Transport contract.
Close to 96% of QMS's Australian revenue is digital, against a 77% industry average.
Nine completed the QMS acquisition from Quadrant Private Equity on March 31, funded from existing debt facilities, as part of a broader restructure that also included the sale of Nine Radio to the Laundy Family Office for $56 million, completed in April.
AdNews reported in April that analysts questioned Nine's overall valuation, with Morningstar pointing to a fair value well above its trading price.
Nine told the Macquarie Australia Conference in May it was "successfully executing a strategic pivot toward a high-growth, digital-first portfolio" while managing a softer ad market in the June quarter.
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