Nine Reaffirms FY27 Growth, Lifts Savings Target to $180m

Nine (ASX:NEC) released its AGM trading update to restate that it expects another year of revenue and EBITDA growth in FY27 on FY26 on a pro forma basis, while updating its expectations for Total Television and its cost savings program.

EBITDA growth is expected to be weighted to the second half, and the outlook is premised on a comparable level of Publishing licensing revenue in FY27 to FY26. Nine Publishing digital subscription revenue grew 7% in Q1 FY27. With no direct qualifying deals in place, Nine intends to accrue an amount of the expected News Bargaining Incentive in FY27, subject to further clarity from the Government, with first cash payments not until H1 FY28. Nine expects H1 FY27 Outdoor media revenue growth in the mid teens and double-digit Outdoor EBITDA growth in FY27, over and above c$9m of expected cost synergies. Total TV revenue was down 6% in Q1 FY27 (pro forma), and Nine now expects a low single digit decline in Q2 Total TV revenue, and in FY27 Total Television costs before the benefit of the FY26 cost write-offs. It expects annualised savings to the end of FY27 to exceed its previous $160m estimate by around $20m, to at least $180m. Nine continues to expect EBITDA growth at Stan in FY27.

The update gives no dollar guidance for group revenue or EBITDA, and the News Bargaining accrual amount is not stated. The Chair told shareholders that dividends in the near term will be unfranked.