Nine Entertainment, reporting a strong March quarter, says the three months to June has been hit by uncertainty and a “soft” advertising market.
The media group, presenting to the Macquarie Australia Conference, said the March quarter was “strong” on revenue, underpinned by a successful content performance, driving growth in core digital and subscription assets, and generating a solid advertising revenue and share outcome.
However, the June quarter is being impacted by a “confluence of uncertainty” - both international and local - which is proving challenging for advertising markets.
Nine’s total TV revenue recorded growth in the low single digits (%) in the March quarter against a strong three months last year.
However, the June quarter has started on a softer note with a short overall market reflective of the underlying advertising conditions.
Cost initiatives will continue through 2026 and beyond, with underlying inflation and targeted investment in technology and content offset by ongoing cost efficiencies across total television.
Nine now expects full year total television costs to be down in the mid-high single digits (%).
At Stan, Nine expects the positive momentum of the first half to continue, with further strong growth projected in the second half.
At Nine Publishing, March digital subscription revenue grew 15%, with this positive momentum continuing into the June quarter.
In the short term however, higher fuel prices will impact distribution costs.
Nine said the future of the group’s commercial arrangement with Google remains uncertain as the industry works through the long-awaited News Bargaining Incentive consultation process.
However, Nine is making progress commercialising its content through a growing number of corporate AI licensing arrangements.
For outdoor media division QMS, June media revenue grew by about 15% on the previous corresponding quarter, underpinned by growth in the key City of Sydney contract and the Auckland Transport Street Furniture contract win. Nine continues to expect double-digit revenue growth in the June quarter.
“Nine is successfully executing a strategic pivot toward a high-growth, digital-first portfolio, punctuated by the QMS Media acquisition and the sale of Nine Radio,” the company told the Macquarie Australia Conference.
“ While the broader advertising market faces a ‘short’ and uncertain Q4, core operational performance remains resilient.
“Total Television continues to deliver market-leading audience growth in key demographics, Stan is sustaining its strong EBITDA growth trajectory and Publishing is recording further double-digit digital subscription revenue gains alongside emerging AI licensing opportunities.
“By continuing to manage the cost base — now expecting FY26 Total TV costs to decline in the mid-to-high single digits — and integrating the high-margin revenue from QMS, Nine is balancing disciplined capital management with a clear strategy to drive long-term shareholder value through premium content and unique data.”
A slide from the presentation to the Macquarie conference:
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