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Nine Entertainment Co. Holdings Limited
(Sydney:NEC)
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Rating:52Neutral
Price Target:
AU$0.99
â–˛(0.51% Upside)
Action:Reiterated
Date:08/28/26
The score is held back primarily by deteriorating financial performance (net loss, margin compression) and higher leverage. Offsetting this are continued positive free cash flow and a more constructive earnings-call outlook for FY27 growth and cost savings; technical indicators are broadly neutral and valuation signals are mixed due to negative earnings and an unusually high dividend yield.
Positive Factors
Growth in streaming, outdoor and digital publishing
Nine is shifting toward diversified businesses with stronger growth prospects, including Stan, QMS outdoor advertising and digital publishing. Their increasing contribution should reduce reliance on traditional television and improve the quality and resilience of earnings over time.
Negative Factors
Sharp deterioration in revenue and profitability
The latest results show weakening demand and materially poorer earnings quality, with the company moving from several years of positive net margins to a substantial loss. Sustained margin pressure could constrain reinvestment and reduce financial flexibility across the portfolio.
Read all positive and negative factors
Positive Factors
Negative Factors
Growth in streaming, outdoor and digital publishing
Nine is shifting toward diversified businesses with stronger growth prospects, including Stan, QMS outdoor advertising and digital publishing. Their increasing contribution should reduce reliance on traditional television and improve the quality and resilience of earnings over time.
Read all positive factors
Nine Entertainment Co. Holdings Limited (NEC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.58B
Dividend Yield64.52%
Average Volume (3M)5.27M
Price to Earnings (P/E)―
Beta (1Y)0.97
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. Volume8,574,165
30 Day Avg. Volume5,266,558
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$1.23Price Target Upside26.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.09
Revenue Forecast (FY)AU$2.48B
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 | 385.23M | 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
Positive
0.98
Price Trends
0.96
Positive
0.95
Positive
0.99
Positive
Market Momentum
<0.01
Positive
54.76
Neutral
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NEC, the sentiment is Positive. The current price of 0.98 is below the 20-day moving average (MA) of 0.98, above the 50-day MA of 0.96, and below the 200-day MA of 0.99, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$21.38B | 39.90 | 27.90% | 1.71% | 4.24% | -18.52% | |
73 Outperform | AU$24.20B | 14.20 | 12.52% | 0.66% | -3.31% | 21.09% | |
64 Neutral | AU$863.63M | 32.70 | 3.76% | 4.29% | 1.84% | 38.50% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | AU$81.12M | 26.06 | 1.40% | 9.20% | -20.68% | ― | |
52 Neutral | AU$1.58B | -3.48 | -29.93% | 62.81% | -18.21% | -430.03% | |
45 Neutral | AU$277.69M | -13.70 | -3.50% | 5.03% | 162.81% | -230.18% |
* Communication Services Sector Average
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Nine Entertainment Co. Holdings Limited Corporate Events
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...
Nine Secures Long-Term NRL and NRLW Rights Through 2034
Jul 7, 2026
Nine Entertainment has secured exclusive free-to-air and free streaming rights to the National Rugby League and National Women’s Rugby League from 2028 to 2034, locking in three weekly NRL games plus finals, Test matches, State of Origin and...
Nine Entertainment Sets Date for FY26 Results and Investor Briefing
Jul 2, 2026
Nine Entertainment Co. will release its financial results for the 2026 financial year on Wednesday, 26 August 2026, providing investors and analysts with an update on the company’s performance. Chief Executive Officer Matt Stanton and Chief ...
Nine Entertainment Reports Lapse of 377,255 Performance Rights
Jul 2, 2026
Nine Entertainment Co. has reported the lapse of 377,255 performance rights, after conditions attached to these securities were not met or became incapable of being satisfied. The cessation of these rights, recorded on 26 June 2026 and disclosed i...
Nine offloads regional TV assets to WIN as digital pivot accelerates
Jun 1, 2026
Nine Entertainment Co. has completed the sale and conversion of its regional television stations NBN in Northern NSW and Nine Darwin into affiliate operations run by WIN Network, after securing regulatory and shareholder approvals. Under a new aff...
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.