Nine Entertainment Co. Holdings Ltd (ASX:NEC) Announces FY25 Interim Results
Financial Performance
Nine Entertainment Co. Holdings Limited reported group revenue of A$1.4 billion for H1 FY25, marking a 1% increase compared to the previous year. Group EBITDA stood at A$268 million, reflecting a 15% decline. The group reported a net profit after tax of A$95.1 million, a 29% decrease year-over-year. The company declared a dividend of 3.5 cents per share, a decrease of 0.5 cents.
Operational Highlights
The company’s digital segment accounts for approximately 50% of group revenue, with a 6% growth driven by streaming, Metro Media, Domain, and Audio. Subscription and licensing revenue contributed around 31% of group revenue, growing by 4%, supported by price increases and strong subscriber trends. Nine achieved significant cost performance by removing around A$35 million in costs, with total savings expected to exceed the original target of $50m by A$10-20 million.
Future Outlook
For Q3 FY25, Nine expects total TV advertising revenues to grow in the high single digits, supported by increases in both streaming and broadcast tied to audience growth. The company anticipates ongoing cost efficiencies and aims to achieve over A$100 million in incremental cost savings by FY27.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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