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$0.96
▼(-13.42% Downside)
Action:ReiteratedDate: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 & stable balance sheet
Sustained FCF growth and high operating cash conversion provide durable funding for dividends, capex, M&A and debt reduction. Robust cash flow reduces reliance on external financing, supports the company’s leverage targets and underpins strategic investments over the next 2–3 years.
Negative Factors
Ad-market weakness hitting broadcast revenues
A significant fall in TV advertising reduces earnings power of core free‑to‑air operations. If ad-market softness persists or secular ad shifts continue, broadcast cashflows and bargaining power for premium programming could face sustained pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & stable balance sheet
Sustained FCF growth and high operating cash conversion provide durable funding for dividends, capex, M&A and debt reduction. Robust cash flow reduces reliance on external financing, supports the company’s leverage targets and underpins strategic investments over the next 2–3 years.
Read all positive factors
Nine Entertainment Co. Holdings Limited (NEC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.41B
Dividend Yield4.83%
Average Volume (3M)7.76M
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth2.18%
EPS Growth-4.23%
CountryAU
Employees3,350
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.56
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$1.26Price Target Upside13.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.09
Revenue Forecast (FY)AU$2.17B
Nine Entertainment Co. Holdings Limited Business Overview & Revenue Model
Company Description
Nine Entertainment Co. Holdings Limited engages in the broadcasting and program production businesses across free to air television, video on demand, and metropolitan radio networks in Australia. It operates through Broadcasting, Digital and Publi...
How the Company Makes Money
NEC primarily makes money by monetising audiences and content across advertising-supported and subscription-based platforms. Key revenue streams include: (1) Television and video advertising: selling advertising inventory across the Nine Network’s...
Nine Entertainment Co. Holdings Limited Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 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
1.01
Negative
1.04
Negative
1.08
Negative
Market Momentum
-0.04
Negative
35.78
Neutral
76.98
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 0.91, above the 50-day MA of 1.01, and above the 200-day MA of 1.08, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 35.78 is Neutral, neither overbought nor oversold. The STOCH value of 76.98 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$20.44B | 21.48 | 12.52% | 0.69% | -14.40% | 31.97% | |
66 Neutral | AU$1.41B | -22.01 | 0.28% | 4.83% | 2.18% | -4.23% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | AU$2.05B | 13.49 | 4.11% | 2.90% | 0.55% | 591.92% | |
50 Neutral | AU$492.98M | 41.17 | 2.33% | 4.29% | 9.25% | -42.79% | |
44 Neutral | AU$96.72M | -3.00 | -5.46% | ― | ― | ― |
* Communication Services Sector Average
AU:NEC
Nine Entertainment Co. Holdings Limited
0.89
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-13.17%
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39.48
-9.05
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Nine Entertainment Co. Holdings Limited Corporate Events
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. ...
Nine Director Matthew Stanton Increases Equity Stake Through Share Purchase and FY26 Performance Rights
Mar 12, 2026
Nine Entertainment has disclosed a change in director Matthew Stanton’s interests, reporting an on-market purchase of 100,000 ordinary shares and the issuance of more than 1.1 million performance rights. Following these transactions, Stanton...
Nine Entertainment Issues 5.25 Million Unquoted Performance Rights Under Incentive Plan
Mar 12, 2026
Nine Entertainment Co. Holdings Limited has notified the market of the issue of 5,252,413 unquoted performance rights under its employee incentive scheme. The new securities, which are not intended to be quoted on the ASX, were issued on 6 March 2...
Nine director Longstaff doubles indirect stake in on-market share purchase
Mar 10, 2026
Nine Entertainment Co. has disclosed a change in director Timothy Longstaff’s indirect shareholding, following an on-market purchase of additional company stock. The filing, made to comply with ASX director interest rules, outlines that the ...
Nine Entertainment Director Peter Tonagh Lifts Indirect Shareholding
Mar 10, 2026
Nine Entertainment Co. has disclosed a change in director Peter Tonagh’s indirect shareholding, with his family super fund purchasing 212,765 additional ordinary shares on market. The transaction, valued at about $199,976, lifts Tonagh’...
Nine Director Timothy Longstaff Acquires First Stake in Company Shares
Feb 27, 2026
Nine Entertainment Co. has disclosed a change in director Timothy Longstaff’s indirect interest in the company, following an on-market share purchase. Through Citicorp Nominees Pty Ltd as trustee for the TJE PLN Longstaff Super Fund, of whic...
Nine Entertainment Declares Interim Dividend for Half-Year to December 2025
Feb 23, 2026
Nine Entertainment Co. Holdings Limited has declared an interim dividend of A$0.045 per ordinary fully paid share, relating to the six-month period ended 31 December 2025. The dividend will trade ex on 9 March 2026, with a record date of 10 March ...
State Street Ceases to Be Substantial Holder in Nine Entertainment
Feb 3, 2026
State Street Corporation, through several of its asset management and banking subsidiaries, has lodged a notice that it has ceased to be a substantial shareholder in Nine Entertainment Co. Holdings Limited as of 30 January 2026. The change reflect...
Nine pivots to digital with QMS deal and exit from radio
Jan 29, 2026
Nine Entertainment Co. has unveiled a major reshaping of its asset portfolio, highlighted by the A$850 million acquisition of digital outdoor advertising operator QMS Media, the planned divestment of its broadcast radio assets, and the shift of re...
Nine Entertainment Sets Date for FY26 Interim Results and Investor Briefing
Jan 12, 2026
Nine Entertainment Co. has announced it will release its FY26 interim financial results on Tuesday, 24 February 2026, with Chief Executive Officer Matt Stanton and Chief Financial Officer Martyn Roberts set to brief investors via a teleconference ...
Nine Entertainment Sets Preliminary 2026 Financial and AGM Timetable
Jan 12, 2026
Nine Entertainment Co. has released its preliminary corporate calendar for 2026, setting out planned dates for key financial disclosures and governance events. The company intends to publish its half-year FY26 results on 24 February 2026 and its f...
Nine Entertainment Cancels 67,026 Lapsed Performance Rights
Jan 5, 2026
Nine Entertainment Co. Holdings Limited has notified the market that 67,026 performance rights (ASX code: NECAI) have lapsed as of 31 December 2025, after the conditions attached to these conditional rights were not met or became incapable of bein...
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.