• Digital subscription revenue growth continuing into Q2
• Stan expected to deliver EBITDA growth in FY26
• Total TV advertising market remains soft and short-term

Nine Entertainment Co. (ASX:NEC) has provided a trading update for the current period. At Nine Publishing, Q1 digital subscription revenue growth in the mid-teens (%) is continuing into Q2. Boosted by the recent Premier League deal, Nine continues to expect FY26 to be another year of EBITDA growth at Stan, with revenue growth expected to more than offset higher costs. The underlying advertising market has proved more challenging than anticipated, with September and October Total TV revenues for Nine down on the prior year in the mid-high single digits (%). At this stage, the Total TV market remains soft and very short for the run into Christmas. Cost comparables in FY26 will be similarly impacted primarily by the absence of the Paris Summer Olympics and the inclusion of the Milano-Cortina Winter Games. Nine continues to find incremental cost efficiencies which are expected to result in FY26 Total Television reported costs declining in the mid-single digits (%) - an improvement on the previously guided low-to-mid single digit (%) decline. Nine Audio's Q1 advertising revenues were weaker than earlier expectations, and Nine is acting to mitigate elements of this weakness through short-term cost initiatives. Following on from growth in the second half of FY25, Nine continues to expect another half of EBITDA growth in H1 FY26 over H1 FY25, with further cost efficiencies, as well as the benefit from the conclusion of the Ben Roberts-Smith appeal process, helping to offset the weaker-than-expected advertising market. The further cost efficiencies cited are expected to result in more than $100m of underlying cost out across FY26 and FY27, ahead of the previously guided $90m.

Nine continues to expect FY26 to be another year of EBITDA growth at Stan, with revenue growth expected to more than offset higher costs. Nine expects FY26 Total Television reported costs to decline in the mid-single digits (%), an improvement on the previously guided low-to-mid single digit (%) decline.

Nine is focused on accelerating its Group strategy, underpinned by organic investment in its core business. In the short term, Nine is focussed on cost initiatives, as well as the structural objectives of Nine2028. Nine's exposure to both digital and subscription markets is helping to offset the advertising market softness, and furthers its strategic opportunity of using the power of the Nine Group to deepen its connection with audiences and advertisers by harnessing its unique data and premium content to drive growth.