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Nine Entertainment Co. Holdings Limited (AU:NEC)
ASX:NEC

Nine Entertainment Co. Holdings Limited (NEC) AI Stock Analysis

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AU

Nine Entertainment Co. Holdings Limited

(Sydney:NEC)

Rating:67Neutral
Price Target:
AU$1.50
▼(-6.25%Downside)
Nine Entertainment Co. Holdings Limited's stock score is primarily influenced by its strong technical indicators and robust cash generation capabilities. However, valuation concerns and financial risks from declining revenue and increasing leverage pose challenges.

Nine Entertainment Co. Holdings Limited (NEC) vs. iShares MSCI Australia ETF (EWA)

Nine Entertainment Co. Holdings Limited Business Overview & Revenue Model

Company DescriptionNine Entertainment Co. Holdings Limited (NEC) is a leading Australian media and entertainment company operating across various sectors including television broadcasting, digital publishing, and content production. The company owns and operates the Nine Network, one of Australia's prominent free-to-air television networks, and a portfolio of digital assets including news and lifestyle websites. Additionally, Nine Entertainment Co. produces and distributes diverse content across multiple platforms, contributing to its significant presence in the media landscape.
How the Company Makes MoneyNine Entertainment Co. Holdings Limited generates revenue primarily through advertising sales across its television, digital, and publishing platforms. The Nine Network attracts advertisers by offering a wide range of popular television content, including news, sports, and entertainment programming, which draws substantial viewer ratings. In the digital space, the company's websites and online platforms monetize through digital advertising, subscriptions, and partnerships. Nine also capitalizes on content production and distribution, licensing its original programming to other broadcasters and streaming platforms. Significant partnerships, such as those with sports leagues for broadcasting rights, further bolster Nine's revenue streams by attracting large audiences and high-value advertisers.

Nine Entertainment Co. Holdings Limited Financial Statement Overview

Summary
Nine Entertainment Co. Holdings Limited presents a mixed financial picture. Strong cash generation capabilities are a positive sign for liquidity. However, declining revenue and margins, coupled with increasing leverage, indicate risks. Despite a stable balance sheet, operational inefficiencies and financial risk need addressing to improve financial health.
Income Statement
72
Positive
Nine Entertainment Co. Holdings Limited shows mixed results in its income statement. The gross profit margin has been declining, indicating increasing costs relative to revenue. However, the net profit margin has improved in the latest year despite a decrease in total revenue, suggesting better cost control or one-off gains. The EBIT and EBITDA margins show a downward trend, reflecting pressure on operational efficiency. Revenue growth has been inconsistent, with recent years indicating a decline.
Balance Sheet
65
Positive
The balance sheet indicates a moderate level of leverage with an increasing debt-to-equity ratio, suggesting rising financial risk. The equity ratio remains solid, indicating that a substantial portion of assets is financed by equity. Return on equity (ROE) has shown fluctuations, with the latest year reflecting a decrease due to lower net income. Overall, the balance sheet reflects a stable but slightly riskier financial position over time.
Cash Flow
78
Positive
Cash flow analysis reveals strengths in operating cash flow, which remains robust despite fluctuations in net income. Free cash flow is positive, though it has decreased recently. The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to accounting profit. However, the free cash flow to net income ratio has declined, pointing to increased capital expenditures or other cash outflows.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue2.65B2.62B2.69B2.69B2.33B2.16B
Gross Profit443.77M1.02B432.88M531.09M363.82M234.32M
EBITDA333.33M405.45M479.31M623.25M460.03M-307.02M
Net Income91.45M110.90M181.81M297.14M169.36M-524.50M
Balance Sheet
Total Assets4.04B4.00B4.02B4.14B3.91B3.67B
Cash, Cash Equivalents and Short-Term Investments134.01M92.86M119.68M153.46M171.93M187.39M
Total Debt1.03B1.08B1.01B860.65M850.43M852.62M
Total Liabilities2.16B2.22B2.14B2.07B1.95B1.79B
Stockholders Equity1.69B1.59B1.68B1.88B1.81B1.75B
Cash Flow
Free Cash Flow278.39M156.42M253.94M412.46M304.40M232.09M
Operating Cash Flow314.64M293.42M351.78M487.23M398.16M374.50M
Investing Cash Flow-141.94M-135.95M-114.83M-301.23M-84.23M-274.09M
Financing Cash Flow-149.16M-184.28M-270.74M-204.46M-329.40M-169.14M

Nine Entertainment Co. Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.60
Price Trends
50DMA
1.54
Positive
100DMA
1.52
Positive
200DMA
1.37
Positive
Market Momentum
MACD
0.01
Positive
RSI
54.27
Neutral
STOCH
27.85
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 1.6 is below the 20-day moving average (MA) of 1.61, above the 50-day MA of 1.54, and above the 200-day MA of 1.37, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 54.27 is Neutral, neither overbought nor oversold. The STOCH value of 27.85 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUNEC
67
Neutral
AU$2.54B27.775.56%4.36%-0.92%-3.83%
AUASX
67
Neutral
$13.51B27.6613.33%3.20%9.70%2.64%
61
Neutral
$41.22B-1.26-14.49%3.95%2.29%-73.14%
AUPPT
57
Neutral
€2.08B-24.47%6.70%5.36%-846.00%
AUSWM
56
Neutral
€238.57M28.181.98%-6.10%-90.04%
AUSXL
44
Neutral
€129.55M-71.41%1.66%-7.85%-3088.82%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NEC
Nine Entertainment Co. Holdings Limited
1.60
0.31
24.03%
AU:SXL
Southern Cross Media Group Limited
0.54
-0.07
-12.20%
AU:PPT
Perpetual Limited
18.20
-1.93
-9.57%
AU:ASX
ASX
69.52
11.79
20.43%
AU:SWM
Seven West Media Limited
0.16
-0.03
-16.22%

Nine Entertainment Co. Holdings Limited Corporate Events

Nine Entertainment Updates Equity Securities Announcement
Jun 20, 2025

Nine Entertainment Co. Holdings Limited has issued an update regarding the correction of an application related to unquoted equity securities, specifically under LR7.2. This announcement, dated June 20, 2025, serves as a correction to a previous notice issued on June 18, 2025, highlighting the company’s commitment to maintaining transparency and compliance in its financial disclosures.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$2.30 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Co. Announces FY25 Final Results Release
Jun 20, 2025

Nine Entertainment Co. is set to release its FY25 final results on August 27, 2025, with CEO Matt Stanton hosting a teleconference to discuss the outcomes. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$2.30 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Issues Performance Rights to Employees
Jun 18, 2025

Nine Entertainment Co. Holdings Limited announced the issuance of 606,371 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move reflects the company’s strategy to incentivize its employees, potentially enhancing operational performance and aligning employee interests with company goals.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$2.30 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Pinnacle Investment Acquires Significant Stake in Nine Entertainment
Jun 10, 2025

Pinnacle Investment Management Group Limited has become a substantial holder in Nine Entertainment Co. Holdings Limited, acquiring a 5.01% voting power through ordinary fully paid shares. This development signifies a notable shift in the shareholder structure, potentially impacting the company’s strategic decisions and market positioning.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$2.30 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Director’s Share Acquisition at Nine Entertainment Co.
Jun 6, 2025

Nine Entertainment Co. Holdings Limited announced a change in the director’s interest, with Peter Tonagh acquiring 123,456 ordinary shares valued at $199,935 through an on-market purchase. This acquisition reflects a significant investment by the director, potentially indicating confidence in the company’s future performance and stability, which may positively influence stakeholder perception and market positioning.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Announces Director Departure
Jun 2, 2025

Nine Entertainment Co. Holdings Limited announced the cessation of Samantha Lewis as a director effective June 1, 2025. The notice detailed that Ms. Lewis holds 100,000 fully paid ordinary shares through Johsam Pty Ltd as trustee for the Lewis Family Trust, indicating her continued financial interest in the company. This change in directorship may impact the company’s governance structure and could have implications for its strategic direction.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$2.30 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Macquarie Group Reduces Stake in Nine Entertainment Co.
May 20, 2025

Nine Entertainment Co. Holdings Limited, a prominent player in the media and entertainment industry, has seen a change in the substantial holding interests of Macquarie Group Limited and its controlled entities. The change reflects a decrease in voting power from 11.87% to 7.69%, indicating a significant shift in shareholder influence. This adjustment in holdings could impact the company’s governance and strategic decisions, potentially affecting its market position and stakeholder interests.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$2.30 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Announces Change in Equity Holdings Structure
May 16, 2025

Nine Entertainment Co. Holdings Limited announced a change in the structure of its equity holdings with the WIN Group, which maintains an economic interest of 25.22% and voting power of 19.98% in Nine. The WIN Group, through Birketu Pty Ltd, has unwound its Physical Swap, acquiring direct ownership of 80.6 million Nine shares. This strategic move does not alter the overall economic interest or voting power of the WIN Group but shifts the nature of their holdings, potentially impacting their influence and strategy within Nine Entertainment.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$2.30 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Announces Board Changes and Strategic Developments
May 15, 2025

Nine Entertainment Co. announced that Samantha Lewis will step down as an independent Non-Executive Director, effective June 1. Her departure follows the appointment of Timothy Longstaff, ensuring a smooth transition. Lewis’s tenure saw significant developments, including the merger with Fairfax and growth in streaming services, positioning Nine strongly in its core markets. The recent sale of Nine’s stake in Domain is seen as a positive move for shareholders, further strengthening the company’s market position.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$2.30 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Backs Domain’s Acquisition by CoStar Group
May 9, 2025

Nine Entertainment Co. Holdings Limited has announced its support for Domain Holdings Australia Limited’s decision to enter into a Scheme Implementation Deed with CoStar Group, Inc. This transaction, which involves CoStar acquiring 100% of Domain’s issued capital, is expected to complete in the third quarter of 2025. Nine anticipates receiving approximately A$1.4 billion from the transaction, which will strengthen its financial position and allow for potential shareholder dividends. The deal positions Nine to explore further strategic investments and maintain its leadership in the media industry.

Australian Retirement Trust Acquires Significant Stake in Nine Entertainment
May 8, 2025

Australian Retirement Trust Pty Ltd has become a substantial holder in Nine Entertainment Co. Holdings Limited, acquiring a 5.014% voting power through 79,512,901 fully paid ordinary shares. This acquisition signifies a notable investment in the media company, potentially impacting its shareholder dynamics and market influence.

Nine Entertainment Announces Change in Substantial Holdings
May 7, 2025

Nine Entertainment Co. Holdings Limited has announced a change in substantial holdings, with State Street Global Advisors and its subsidiaries ceasing to be substantial holders as of May 5, 2025. This change in holdings could impact the company’s shareholder structure and influence its strategic decisions moving forward.

Nine Entertainment Reports Strong Content Performance and Revenue Growth Amid Market Uncertainty
May 6, 2025

Nine Entertainment Co. Holdings Limited has reported strong content performance in 2025, with notable successes in TV shows and sports broadcasts, leading to an 8% increase in Total TV advertising revenue for the March quarter. Despite economic uncertainties impacting the advertising market, Nine maintains its cost guidance and anticipates growth in digital subscription revenue and cost efficiencies, while radio advertising revenues have declined.

Nine Entertainment Co. Gains Substantial Voting Power
May 5, 2025

Nine Entertainment Co. Holdings Limited has become a substantial holder with significant voting power in the company. This development involves several entities, including State Street Global Advisors and The Macquarie Group, indicating a consolidation of control over voting rights and securities management. The announcement highlights the strategic positioning of Nine Entertainment in managing its securities and voting interests, which could impact its market influence and decision-making processes.

Macquarie Group Increases Stake in Nine Entertainment Co.
May 2, 2025

Nine Entertainment Co. Holdings Limited has experienced a change in the interests of a substantial holder, Macquarie Group Limited and its controlled entities. The voting power of Macquarie Group has increased from 10.86% to 11.87%, indicating a significant shift in their stake within the company. This change in voting power could potentially impact the company’s decision-making processes and influence its strategic direction, reflecting Macquarie’s growing influence in the media and entertainment sector.

State Street Global Advisors Ceases Substantial Holding in Nine Entertainment
May 2, 2025

Nine Entertainment Co. Holdings Limited has announced that State Street Global Advisors and its subsidiaries have ceased to be substantial holders in the company as of April 30, 2025. This change in substantial holding may impact the company’s shareholder structure and could influence its market dynamics, potentially affecting stakeholders’ interests.

State Street Corporation Acquires Substantial Holdings in Nine Entertainment
Apr 30, 2025

Nine Entertainment Co. Holdings Limited has announced a significant change in its substantial holdings, with State Street Corporation and its subsidiaries acquiring a notable interest in the company. This development is part of a broader strategy by State Street to enhance its investment portfolio and influence within the media and entertainment industry. The acquisition of substantial holdings by State Street Corporation is expected to impact Nine Entertainment’s operations by potentially altering its shareholder dynamics and strategic direction. This move could have implications for stakeholders, including potential shifts in voting power and decision-making processes within the company.

State Street Corporation Ceases Substantial Holding in Nine Entertainment
Apr 24, 2025

Nine Entertainment Co. Holdings Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of April 22, 2025. This change in substantial holding could impact the company’s shareholder structure and influence, potentially affecting its market positioning and stakeholder relationships.

State Street Increases Stake in Nine Entertainment
Apr 23, 2025

Nine Entertainment Co. Holdings Limited has announced a significant change in its substantial holders, with State Street Corporation and its subsidiaries acquiring a notable voting power in the company. This development indicates a strategic investment move by State Street, potentially impacting Nine Entertainment’s market positioning and stakeholder dynamics.

Perpetual Limited Increases Stake in Nine Entertainment Co.
Apr 14, 2025

Perpetual Limited has increased its voting power in Nine Entertainment Co. Holdings Limited from 7.568% to 8.825%, reflecting a notable change in its substantial holding. This adjustment in shareholding could influence the company’s strategic decisions and potentially impact its market positioning, given Perpetual Limited’s significant stake.

Australian Retirement Trust Exits Substantial Holding in Nine Entertainment
Apr 14, 2025

The Australian Retirement Trust Pty Ltd has ceased to be a substantial holder in Nine Entertainment Co. Holdings Limited as of April 10, 2025. This change in shareholding could impact Nine Entertainment’s shareholder structure and potentially influence its strategic decisions, reflecting shifts in investor confidence or strategy.

Nine Entertainment Announces Registry Office Relocation
Apr 13, 2025

Nine Entertainment Co. Holdings Limited has announced a change in the address of its registry office in Sydney, effective from April 14, 2025. This move to a new location at Liberty Place, 161 Castlereagh St, Sydney, is part of the company’s ongoing operational adjustments, although it maintains the same telephone numbers and postal address, indicating minimal disruption for stakeholders.

State Street Corporation Ceases Substantial Holding in Nine Entertainment
Apr 11, 2025

Nine Entertainment Co. Holdings Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of April 9, 2025. This change in substantial holding may impact the company’s shareholder structure and influence within the market, potentially affecting its strategic decisions and stakeholder interests.

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.Date of analysis: Jun 05, 2025