Nine Entertainment Co. Holdings Limited (AU:NEC)
ASX:NEC
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Nine Entertainment Co. Holdings Limited
(Sydney:NEC)
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Rating:66Neutral
Price Target:
AU$0.99
▼(-10.99% Downside)
Action:Reiterated
Date:02/24/26
The score is driven primarily by solid financial quality (especially strong cash flow and a stable balance sheet) and a constructive earnings outlook focused on cost savings and synergy delivery. Offsetting these strengths, technical indicators show clear bearish momentum, keeping the overall score in the mid-range despite reasonable valuation and a high dividend yield.
Positive Factors
Strong cash generation
Nine’s free cash flow growth (FCF +27.44%) and an operating cash flow to net income ratio of 3.79 indicate durable cash conversion. Robust cash generation supports reinvestment in streaming, funds cost-out and dividends, and provides optionality for M&A or debt reduction without relying on volatile ad receipts.
Negative Factors
Cyclical advertising weakness
Material declines in broadcast ad receipts (Total TV -14%) highlight exposure to cyclical ad markets. Given advertising remains a major revenue pillar, persistent softness would structurally compress top-line growth and cashflow, limiting the pace of reinvestment and making earnings more volatile across advertising cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Nine’s free cash flow growth (FCF +27.44%) and an operating cash flow to net income ratio of 3.79 indicate durable cash conversion. Robust cash generation supports reinvestment in streaming, funds cost-out and dividends, and provides optionality for M&A or debt reduction without relying on volatile ad receipts.
Read all positive factors
Nine Entertainment Co. Holdings Limited (NEC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.45B
Dividend Yield4.83%
Average Volume (3M)7.76M
Price to Earnings (P/E)323.1
Beta (1Y)0.86
Revenue Growth-11.32%
EPS Growth-95.16%
CountryAU
Employees3,350
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)<0.01
Shares Outstanding1,585,762,100
10 Day Avg. Volume5,600,448
30 Day Avg. Volume7,761,384
Financial Highlights & Ratios
PEG Ratio-5.51
Price to Book (P/B)1.64
Price to Sales (P/S)0.96
P/FCF Ratio7.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.15Price Target Upside3.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.09
Revenue Forecast (FY)AU$2.18B
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 generates revenue primarily by monetising audiences and content across multiple platforms. (1) Advertising is a major revenue stream: the company sells advertising inventory across its free-to-air broadcast channels and its digital/streaming p...
Nine Entertainment Co. Holdings Limited Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call presented a constructive and transformational picture: financials showed solid top-line scale and margin improvement (EBITDA +6%, NPAT +30%, EBITDA margin +~2ppt), strong streaming and publishing subscription growth (Stan record results, Drive marketplace growth), meaningful cost-out delivery and a strengthened balance sheet after the Domain proceeds and dividend. These positives were tempered by a weak advertising market that drove a 14% revenue decline in Total TV, continued soft digital advertising at mastheads, specific restructuring costs, and near-term uncertainty for Q4 trading and BVOD monetization. Strategic M&A (QMS), portfolio reorientation toward growth assets and early AI commercialization are notable upside drivers, while ad-market cyclicality and regulatory risks remain the main headwinds.Positive Updates
Group Financial Performance
Group revenue of $1.1 billion for the 6 months to December with reported group EBITDA of $201 million (including Radio/NBN/Darwin), up 6% year-on-year; on a continuing business basis EBITDA was $192 million, also up 6%.
Negative Updates
Weak Advertising Market and TV Revenue Decline
Total TV revenue declined 14% on a continuing business basis in the half (market down ~10%), reflecting a weak advertising market and tough prior-year Olympic comparatives that materially pressured broadcast revenues.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Financial Performance
Group revenue of $1.1 billion for the 6 months to December with reported group EBITDA of $201 million (including Radio/NBN/Darwin), up 6% year-on-year; on a continuing business basis EBITDA was $192 million, also up 6%.
Read all positive updates
Company Guidance
Guidance from the call was focused on cost, leverage and M&A outcomes: Nine reiterated a target to deliver at least $160m of savings across FY‑25–FY‑27 (with $92m delivered to date) and said it will take a further ~$70m of underlying cost out across H2 FY‑26 and into FY‑27; pro forma QMS is expected to deliver ~$105m of EBITDA in CY‑26 with D&A of ~ $50m (and after‑tax interest on an ~$850m purchase of roughly $35m pa), with synergies expected to move EPS from low‑single‑digit to double‑digit accretion (post‑synergies ~ $14–20m after tax noted); leverage is expected to peak at ~1.8x net debt/EBITDA by June‑2026 post‑M&A and fall back into Nine’s 1.0–1.5x target range by end FY‑27 helped by enhanced EBITDA and tax losses expected to be realized around Jan‑2027; other reference metrics given in the update included H1 continuing revenue $1.1bn, group EBITDA $192m (reported group EBITDA $201m) and margin ~18.2%, NPAT $95m (up 30%), EPS $0.06 (up 30%) and an interim dividend of $0.045.Nine Entertainment Co. Holdings Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.35B | 2.69B | 2.62B | 2.69B | 2.69B | 2.33B |
| Gross Profit | 359.73M | 495.06M | 321.63M | 598.39M | 531.09M | 363.82M |
| EBITDA | 337.05M | 385.23M | 405.45M | 479.31M | 610.60M | 460.03M |
| Net Income | 4.47M | 103.89M | 110.90M | 181.81M | 297.14M | 169.36M |
Balance Sheet | ||||||
| Total Assets | 2.87B | 3.97B | 4.00B | 4.02B | 4.14B | 3.91B |
| Cash, Cash Equivalents and Short-Term Investments | 158.55M | 141.67M | 92.86M | 119.68M | 153.46M | 171.93M |
| Total Debt | 511.09M | 1.06B | 1.08B | 1.01B | 860.65M | 850.43M |
| Total Liabilities | 1.22B | 2.19B | 2.22B | 2.14B | 2.07B | 1.95B |
| Stockholders Equity | 1.65B | 1.57B | 1.59B | 1.68B | 1.88B | 1.81B |
Cash Flow | ||||||
| Free Cash Flow | 15.63M | 354.77M | 156.42M | 253.94M | 412.46M | 304.40M |
| Operating Cash Flow | 46.07M | 379.60M | 293.42M | 351.78M | 487.23M | 398.16M |
| Investing Cash Flow | 1.50B | -127.30M | -135.95M | -114.83M | -301.23M | -84.23M |
| Financing Cash Flow | -1.54B | -203.49M | -184.28M | -270.74M | -204.46M | -329.40M |
Nine Entertainment Co. Holdings Limited Technical Analysis
Negative
1.11
Price Trends
0.95
Negative
0.97
Negative
1.03
Negative
Market Momentum
>-0.01
Negative
44.69
Neutral
63.89
Neutral
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 1.11 is above the 20-day moving average (MA) of 0.93, above the 50-day MA of 0.95, and above the 200-day MA of 1.03, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 63.89 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$20.65B | 14.20 | 12.52% | 0.69% | -7.50% | -13.78% | |
66 Neutral | AU$1.45B | 323.12 | 0.28% | 4.83% | -11.32% | -95.16% | |
62 Neutral | AU$776.47M | 47.17 | 2.33% | 4.29% | 8.77% | -53.76% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | AU$2.08B | 53.21 | 4.11% | 2.90% | 4.48% | 355.35% | |
44 Neutral | AU$85.80M | -6.35 | -5.46% | ― | -22.01% | -306.25% |
* Communication Services Sector Average
AU:NEC
Nine Entertainment Co. Holdings Limited
0.92
-0.13
-12.69%
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News Corporation Shs B Chess Depository Interests repr 1 Sh
42.19
-7.40
-14.93%
Nine Entertainment Co. Holdings Limited Corporate Events
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...
Nine Wins Shareholder Backing for Sale of NBN and TV Assets to WIN
May 21, 2026
Nine Entertainment Co. Holdings Limited has secured shareholder approval to sell its subsidiaries NBN Enterprises Pty Ltd and Television Holdings Pty Ltd to WIN Television Network Pty Ltd. The transaction was endorsed at a general meeting where th...
Nine seeks shareholder approval to sell regional TV assets to WIN
May 21, 2026
Nine Entertainment Co. Holdings is seeking shareholder approval at a general meeting to sell its NBN Enterprises and Television Holdings Darwin businesses, which operate free-to-air TV stations in Northern New South Wales and Darwin, to WIN Televi...
Nine leans into digital and outdoor as ad-market uncertainty clouds Q4
May 4, 2026
Nine is advancing a strategic pivot toward a higher-growth, digital-first media portfolio, highlighted by the completed acquisition of QMS Media and the sale of Nine Radio, with restructures of NBN and Nine Darwin expected to close by June pending...
Nine Sells Radio Network to Laundy as It Refocuses on Digital and OOH
Apr 30, 2026
Nine Entertainment Co. has completed the sale of its entire portfolio of broadcast radio stations, including 2GB, 3AW, 4BC, 6PR, 2UE, Magic1278 and 4BH, to the Laundy Family Office for an enterprise value of $56 million on a cash and debt-free bas...
WIN Group Lifts Economic Stake in Nine via New Equity Swaps
Apr 15, 2026
Nine Entertainment Co. has disclosed that the WIN Group, associated with Bruce Gordon and including Birketu Pty Ltd and WIN Corporation, has increased its aggregate economic interest in Nine from 27.31% to 28.22%, while its voting power remains un...
WIN Group Lifts Economic Stake in Nine Entertainment via Equity Swaps
Apr 9, 2026
Nine Entertainment Co. has disclosed that the WIN Group, controlled by Bruce Gordon through Birketu Pty Ltd and associated entities, has increased its aggregate economic interest in Nine from 26.30% to 27.31% via new cash-settled equity swap trans...
Pinnacle exits substantial holder position in Nine Entertainment
Apr 2, 2026
Pinnacle Investment Management Group Limited and its listed subsidiaries have notified Nine Entertainment Co. Holdings that they have ceased to be a substantial holder in the company as of 30 March 2026. The change, formally lodged under Australia...
Nine completes QMS Media takeover to boost digital and outdoor reach
Mar 31, 2026
Nine Entertainment Co. has completed its acquisition of 100% of digital outdoor media operator QMS Media from Quadrant Private Equity, integrating premium billboards, street furniture and other outdoor assets into its existing streaming, broadcast...
Nine Entertainment Appoints Chris Halios-Lewis to Board With Initial Shareholding
Mar 26, 2026
Nine Entertainment Co. Holdings Limited has announced the appointment of Chris Halios-Lewis as a director effective 26 March 2026, formalising the move in a filing with the ASX. The notice also discloses that Halios-Lewis holds a personal stake of...
Nine Entertainment adds WIN executive Chris Halios-Lewis to board
Mar 26, 2026
Nine Entertainment Co., a leading Australian media group spanning television and digital platforms, has been reshaping its portfolio to emphasise digital-first operations and has recently bolstered its market presence with the acquisition of QMS. ...
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.