• Strong growth in digital, subscription and licensing revenues
• Profitable Olympics coverage across Streaming and Broadcast
• $35M of cost savings implemented across the half

Nine Entertainment Co. Holdings Ltd reported its interim results for FY25, with revenue up 1% to $1.39B and EBITDA down 15% to $268.4M. The company saw strong growth in digital, subscription and licensing revenues, which offset a weaker advertising market. Nine's Streaming and Broadcast division reported 2% revenue growth, with the Olympics coverage being profitable primarily through Streaming and Broadcast. Digital revenue now accounts for around 50% of group revenue, up 6% with growth across all key digital revenue streams. Subscription and licensing revenue was around 31% of group revenue, up 4% (8% ex Meta and Google). The company implemented around $35M of cost savings across the half, with the full-year target expected to exceed the original $50M by $10-20M. Domain reported 7% revenue growth and 15% EBITDA growth, with positive audience metrics and take up of new products in a strong listings market. Nine's Radio business saw 2% revenue growth, with strong growth in digital revenues partially offsetting a decline in broadcast advertising. The company outlined its strategic priorities for Nine2028, including increasing its share of the digital video market, enhancing its integrated audience platform, growing marketplaces, and leveraging AI for operational efficiencies, content maximization and new product development.

Nine expects total TV ad revenues to grow in the high-single digits (%) in Q3 FY25, with growth in both Streaming and Broadcast. FY25 total TV costs are now expected to be broadly flat, ex Olympics, on pcp. Publishing EBITDA in H2 FY25 is expected to be below H1 FY25 due to advertising seasonality, incremental investment in growth areas and cycling of cost efficiencies. Stan's H2 EBITDA growth is expected to exceed the 16% growth in H1. Domain expects stable EBITDA margins in FY25. Nine expects further cost efficiencies of more than $100M through to the end of FY27, of which $10-20M is expected to be realized in FY25.

Nine has had a strong start to calendar 2025 with growth in both streaming and broadcast audiences. The company sees opportunities to accelerate its strategy, including increasing its share of the digital video market, enhancing its integrated audience platform, growing marketplaces, and leveraging AI. Nine is also focused on shifting to a simpler, more consumer-led operating model and delivering $100M in incremental cost efficiencies to the end of FY27.