Nine Entertainment has announced the acquisition of digital outdoor media platform QMS Media (QMS), the sale of its radio assets and the conversion of regional television station from a wholly-owned business to an affiliate.
The media company reaffirmed earnings guidance as part of the announcement of initiatives, which are part of a strategic repositioning aimed at driving long-term shareholder value.
Nine said it would:
- Buy QMS on a cash and debt-free enterprise value basis for A$850 million (US$594 million) from Quadrant Private Equity
- Sell Nine Radio (2GB, 3AW, 4BC, 6PR, 2UE, Magic1278 and 4BH) to the Laundy Family Office on a cash and debt-free enterprise value of $56 million, and
- Convert regional television station NBN (Northern NSW) from a wholly owned business to an affiliate, owned and operated by regional partner, WIN and receive $14.8 million.
Chief Executive Officer Matt Stanton said the announcements marked a critical milestone in the company’s transformation, with digital growth businesses expected to account for more than 60% of revenue from the 2027 financial year.
“These transactions will create a more efficient, higher-growth, and digitally powered Nine Group for our consumers, advertisers, shareholders and people,” he said in an ASX announcement.
The portfolio realignment was expected to result in $178 million of one-off cash tax loss benefits, offsetting much of the capital gains tax previously calculated at $254 million from the sale of Nine’s stake in real estate platform Domain Holdings.
Nine said it continued to expect earnings before interest, tax, depreciation and amortisation (EBITDA) growth in the first half of the 2026 financial year (H1 FY26) on H1 FY25.
The acquisition of QMS was expected to be marginally earnings per share (EPS) accretive before synergies, and low-double-digit percentage EPS accretive, including synergies, on a FY26 pro forma basis.
On a net profit after tax and amortisation basis (adjusting for the amortisation of non-cash identifiable intangibles), it was expected to be mid-single digit percentage EPS accretive (pre-synergies) and mid-teen (%) EPS accretive, including cost synergies.
At the time of writing, Nine (ASX: NEC) shares were 4.7 cents (4.3%) higher at $1.14, after trading between $1.10 and $1.15, capitalising the company at $1.79 billion.
