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Nine Entertainment Co. Holdings Limited
(Sydney:NEC)
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Rating:48Neutral
Price Target:
AU$0.61
â–Ľ(-37.35% Downside)
Action:Reiterated
Date:10/15/26
The score is held back primarily by deteriorating financial performance (net loss, margin compression) and a more leveraged balance sheet, alongside bearish technical signals (below major moving averages with negative MACD). Offsetting factors include continued positive free cash flow, constructive FY'27 growth and cost-out commentary from the earnings call, and a high dividend yield, though the negative P/E and elevated debt keep overall risk elevated.
Positive Factors
Stan growth and profitability
Stan is demonstrating stronger monetisation and subscriber engagement, with growth across revenue, ARPU and sports users alongside record profitability. This improves the mix toward recurring subscription income and gives Nine a scalable growth platform beyond traditional advertising.
Negative Factors
Higher leverage and weaker balance sheet
The sharp increase in leverage reduces financial flexibility and leaves less balance-sheet capacity to absorb prolonged weakness or fund strategic investment. Lower equity and negative returns further weaken the cushion supporting creditors and future capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Stan growth and profitability
Stan is demonstrating stronger monetisation and subscriber engagement, with growth across revenue, ARPU and sports users alongside record profitability. This improves the mix toward recurring subscription income and gives Nine a scalable growth platform beyond traditional advertising.
Read all positive factors
Nine Entertainment Co. Holdings Limited (NEC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.04B
Dividend Yield11.45%
Average Volume (3M)6.83M
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth-18.21%
EPS Growth-430.03%
CountryAU
Employees4,193
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.26
Shares Outstanding1,585,762,100
10 Day Avg. Volume6,043,961
30 Day Avg. Volume6,827,920
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.19
Price to Sales (P/S)0.64
P/FCF Ratio10.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.11Price Target Upside13.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.09
Revenue Forecast (FY)AU$2.47B
Nine Entertainment Co. Holdings Limited Business Overview & Revenue Model
Company Description
Nine Entertainment Co. Holdings Limited, established in 1956 and based in North Sydney, Australia, is a diversified media enterprise that produces and broadcasts content across various platforms within Australia, including free-to-air television, ...
How the Company Makes Money
NEC primarily makes money by monetising audiences across its broadcast, streaming, publishing, and audio platforms through a mix of advertising, subscriptions, and related commercial services.
1) Advertising (major revenue stream)
- Broadcast TV ...
Nine Entertainment Co. Holdings Limited Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Neutral
The call presents a balanced picture: clear operational progress and growth in strategic, higher-margin areas (Stan, QMS/outdoor, digital subscriptions, Drive, AI licensing pipeline and strong cost savings) alongside major one-off accounting charges and short-term headwinds in broadcast advertising. Management highlights portfolio reshaping, technology investment and expected FY'27 revenue and EBITDA growth, but the large Total TV impairment, elevated specific items and an ongoing soft TV ad market temper the near-term financial story.Positive Updates
Group revenue and EBITDA growth (continuing & pro forma)
Continuing business revenue of $2.2bn with EBITDA of $379m (EBITDA growth +17% on continuing basis). On a pro forma basis (including a full year of QMS) group revenue of ~$2.4bn and group EBITDA of $516m, up 6% on the prior comparable period.
Negative Updates
Large impairment on Total TV
Accounting net impairment against Total TV of $434m after tax (part of specific items), taken mainly against broadcast licences, PP&E, software and legacy international content rights—major one-off charge affecting FY'26 results.
Read all updates
Q4-2026 Updates
Positive
Negative
Group revenue and EBITDA growth (continuing & pro forma)
Continuing business revenue of $2.2bn with EBITDA of $379m (EBITDA growth +17% on continuing basis). On a pro forma basis (including a full year of QMS) group revenue of ~$2.4bn and group EBITDA of $516m, up 6% on the prior comparable period.
Read all positive updates
Company Guidance
Nine said it expects pro forma revenue and EBITDA growth in FY '27, with its key growth engines (outdoor, streaming and digital publishing) to drive more than 60% of revenue and more than 70% of EBITDA; management said reported EBITDA growth guidance is expected to be achieved beyond the c.$40m FY‑27 benefit from the Total TV impairment. As context for the guidance, FY‑26 continuing business revenue was $2.2bn with EBITDA $379m (+17%), pro forma revenue was $2.4bn with group EBITDA $516m (+6%), NPATA was $147m and EPSA $0.093; QMS pro forma revenue was $295m (+15%) with pre‑AASB16 EBITDA $88m (+15%) (actual FY‑26 contribution $54m reported / $25m pre‑AASB16), Stan EBITDA was $81m (+34%) with revenue +16% and ARPU +8%, Total TV EBITDA was $134m (‑12%), and digital video advertising grew ~20% in the latest half. Key FY‑27 financial settings: net debt was $658m (leverage ~1.7x and expected to remain around current levels), CapEx guidance $150–170m (c.$35m for QMS), cost‑out program on track to exceed the prior $160m three‑year target (removed $70m this year, $130m over two years), fully hedged for FY‑27 interest (50% hedged for FY‑28), and tax prepayments of about $105m have been made to restore franking capacity.Nine Entertainment Co. Holdings Limited Financial Statement Overview
Summary
Income Statement
41
Neutral
Balance Sheet
38
Negative
Cash Flow
62
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.19B | 2.69B | 2.62B | 2.69B | 2.69B |
| Gross Profit | 227.58M | 495.06M | 321.63M | 598.39M | 531.09M |
| EBITDA | 357.50M | 495.06M | 405.45M | 479.31M | 610.60M |
| Net Income | -423.68M | 103.89M | 110.90M | 181.81M | 297.14M |
Balance Sheet | |||||
| Total Assets | 3.67B | 3.97B | 4.00B | 4.02B | 4.14B |
| Cash, Cash Equivalents and Short-Term Investments | 92.39M | 141.67M | 92.86M | 119.68M | 153.46M |
| Total Debt | 1.67B | 1.06B | 1.08B | 1.01B | 860.65M |
| Total Liabilities | 2.48B | 2.19B | 2.22B | 2.14B | 2.07B |
| Stockholders Equity | 1.18B | 1.57B | 1.59B | 1.68B | 1.88B |
Cash Flow | |||||
| Free Cash Flow | 130.70M | 354.77M | 156.42M | 253.94M | 412.46M |
| Operating Cash Flow | 162.22M | 379.60M | 293.42M | 351.78M | 487.23M |
| Investing Cash Flow | 535.50M | -127.30M | -135.95M | -114.83M | -301.23M |
| Financing Cash Flow | -746.99M | -203.49M | -184.28M | -270.74M | -204.46M |
Nine Entertainment Co. Holdings Limited Technical Analysis
Negative
0.98
Price Trends
0.77
Negative
0.84
Negative
0.89
Negative
Market Momentum
-0.03
Negative
40.97
Neutral
85.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NEC, the sentiment is Negative. The current price of 0.98 is above the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.77, and above the 200-day MA of 0.89, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 85.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NEC.
Nine Entertainment Co. Holdings Limited Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | AU$21.00B | 38.36 | 27.90% | 1.85% | 4.24% | -18.52% | |
68 Neutral | AU$23.73B | 31.51 | 6.62% | 0.59% | -3.31% | 21.09% | |
64 Neutral | AU$882.11M | 33.40 | 3.76% | 3.58% | 1.84% | 38.50% | |
61 Neutral | AU$87.36M | 29.26 | 1.40% | 4.36% | -20.68% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
48 Neutral | AU$1.04B | -2.53 | -29.93% | 11.45% | -18.21% | -430.03% | |
45 Neutral | AU$232.21M | -11.17 | -3.50% | 7.34% | 162.81% | -230.18% |
* Communication Services Sector Average
AU:NEC
Nine Entertainment Co. Holdings Limited
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News Corporation Shs B Chess Depository Interests repr 1 Sh
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Nine Entertainment Co. Holdings Limited Corporate Events
Nine Entertainment Cancels Over 1.28 Million Performance Rights After Conditions Lapse
Oct 1, 2026
Nine Entertainment Co. Holdings Limited has reported the lapse of 1,288,963 performance rights, which have ceased because the conditions attached to those rights were not met or could no longer be satisfied. The cessation, effective 30 September 2...
Nine Entertainment Director Andrew Lancaster Lifts Indirect Shareholding
Sep 24, 2026
Nine Entertainment Co. Holdings Ltd has reported a change in director Andrew Lancaster’s indirect shareholding in the company. The interest is held via a family superannuation fund, reflecting personal investment exposure to the media group&...
Nine Entertainment Co. Releases Materials for 2026 Hybrid AGM
Sep 23, 2026
Nine Entertainment Co. has released key materials for its 2026 Annual General Meeting, which will be held on 6 November 2026 at its North Sydney headquarters and via a virtual platform. The company has made the Notice of Meeting, Voting Form, Virt...
Nine Entertainment Director Increases On-Market Shareholding
Sep 15, 2026
Nine Entertainment Co. Holdings Ltd has disclosed a change in director shareholdings, reporting that director Christopher Halios-Lewis increased his direct ownership in the company. He purchased 20,000 ordinary shares on market on 15 September 202...
Nine Entertainment Issues New Shares on Conversion of Unquoted Securities
Sep 7, 2026
Nine Entertainment Co. Holdings Limited has notified the ASX of the issue of 281,310 ordinary fully paid shares following the conversion or exercise of previously unquoted equity securities. The new shares, issued on 28 August 2026, modestly incre...
Nine Entertainment boosts director equity via short-term incentive transfer
Sep 7, 2026
Nine Entertainment has disclosed a change in director Matthew Stanton’s interests, reflecting an increase in his holding of ordinary shares in the company. The update, lodged with the ASX under listing rule requirements, details adjustments ...
Nine Entertainment Updates Director Matthew Stanton’s Equity Holdings
Aug 28, 2026
Nine Entertainment has disclosed changes in director Matthew Stanton’s holdings, following the vesting and lapse of performance rights under the company’s incentive plans. Stanton acquired 41,171 ordinary shares at no cost upon vesting...
Nine Entertainment cancels 1.87 million lapsed performance rights
Aug 26, 2026
Nine Entertainment Co. Holdings Limited has confirmed the lapse of 1,871,006 performance rights, which ceased because the conditions attached to these conditional rights were not satisfied or became incapable of being satisfied. The cessation, dis...
Nine Entertainment Appoints Leigh Terry to Board with No Initial Shareholding
Aug 25, 2026
Nine Entertainment Co. Holdings Limited has appointed Leigh Terry as a director effective 26 August 2026, according to an initial director’s interest notice lodged with the ASX. The filing confirms that Terry currently holds no relevant inte...
Nine Entertainment Declares Interim Dividend for June 2026 Half
Aug 25, 2026
Nine Entertainment Co. Holdings Limited has announced a new interim dividend of AUD 0.03 per ordinary fully paid share, relating to the six‑month period ended 30 June 2026. The stock will trade ex‑dividend on 10 September, with a recor...
Nine Entertainment Details 2026 Corporate Governance Compliance
Aug 25, 2026
Nine Entertainment Co. Holdings Ltd has lodged its corporate governance statement for the financial year ended 30 June 2026 with the ASX, making the document available on its website as required under listing rules. The statement, current as of 26...
Nine Entertainment Delivers Revenue and Profit Growth in FY26
Aug 25, 2026
Nine Entertainment reported solid financial growth for FY26, with continuing business revenue rising 3% to $2.2 billion and pro forma revenue up 1% to $2.4 billion. The company delivered EBITDA of $379 million on a continuing basis, a 17% increase...
Nine Entertainment posts higher underlying profit and confirms final dividend despite asset deficit
Aug 25, 2026
Nine Entertainment Co. Holdings Limited reported a 3% rise in revenue from ordinary activities to $2.20 billion for the year to 30 June 2026, with net profit after tax from continuing operations heavily impacted by specific items, resulting in a l...
Nine Entertainment Co. Adds Veteran Advertiser-Side Executive to Board
Aug 11, 2026
Nine Entertainment Co. has appointed veteran media executive Leigh Terry as an independent non-executive director, adding more than 25 years of leadership across Europe and Asia-Pacific media, marketing and professional services to its board. Terr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.