Stan, Domain and Olympics keep Nine finances on track
Nine’s streaming service Stan was the standout performer in solid financial year reporting that saw Australia’s cross-platform media giant slightly increase revenue and reduce earnings before interest, tax, depreciation and amortisation (EBITDA).
Nine today posted full group revenue of close to $2.7 billion for FY2025, up 2% year on year, with EBITDA of $486m, down from just over $517m last year.
Within that number it was Stan and and the now-sold Domain that did the financial heavy lifting, with the Olympics providing a big revenue and subscription driver.
Stan revenue was up 10% to around $492m, an increase YOY of around $44m in absolute numbers. EBITDA increased by 31% to more than $60m. In commentary, Nine said the increase was due to strong Olympics performance and the success of Yellowstone.
“Paying subscribers, inclusive of newly acquired Premier League subscribers, are currently around 2.5m,” Nine said in its release to the market.
How Nine’s results fit historically (Unmade)
While Stan was strong, Nine’s television division showed just how difficult broadcast is even in an Olympics year. While revenue was just up (3%, or close to $32m), costs were up more (blowing out by $80m) to reduce the division’s EBITDA substantially (down 24% YOY to around $160m).
Nine’s Publishing division (including news mastheads The Age, The SMH, and The Australian Financial Review) was also doing it tough, with slightly reduced revenue (down 6%) and flat EBITDA. Nine noted that the previous year’s revenue had included News Media Bargaining Code money from Meta, which is no more.
“Digital subscription revenue growth coupled with a disciplined cost performance, offset much of the impact of the Meta withdrawal and softer advertising markets on Publishing EBITDA,” the results commentary read.
“The result included a single-digit $m adjustment to provisions relating to the defamation case brought against Nine by Ben Roberts-Smith.”
In questions after the prepared presentation, an investor described the AFR as “the jewel in the crown” and asked Nine CEO Matt Stanton how much it contributed to the Publishing division.
Matt Stanton delivering the results
“We love our children equally, but some days some are better than others,” Stanton replied. “We don’t split out, but [the AFR] is going well — it’s a material part of the business.”
In its final contribution to Nine’s bottom line, Domain EBITDA was up 7% to $146m. Nine’s small audio division (including 2GB and 3AW) reduced its revenue year on year (down 2% to around $101m) but gained some ground in EBITDA (up 8% to $9.1m).
“I am pleased with Nine’s performance in FY25, particularly in the second half, where we recorded growth in profit in both Streaming and Broadcast and Publishing – driven by strong audience performance and firm cost management,” Stanton said in prepared remarks.
Stanton addressed the regulatory environment, encouraging the Albanese government to continue efforts to tax digital platforms and saying that the government’s News Bargaining Incentive consultation paper would be released soon.
“We are pleased the government continues to be committed to the News Media Bargaining Incentive and look forward to the consultation paper, which we understand will be released soon. We are aligned with the PM on getting this done, and there are emerging threats to local media and journalism with generative AI platforms scraping our news platforms to train their systems without nine’s permission or any payment.
“This too will, will require decisive political action to ensure that this theft cannot go on without consequence or commercial arrangement.”
Stanton also highlighted costs savings and the restructure of the business into the three verticals of Streaming and Broadcast, Publishing and Marketplaces.
Reacting to a question about whether Nine intended to use the money from the Domain sale to purchase Southern Cross Austereo, Stanton said: “We don’t react to market speculation. That’s not something we put in the [news] papers, I can tell you that for sure.”
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