Update shared on29 Aug 2025
Fair value Decreased 8.86%The reduction in revenue growth forecasts from -1.1% to -2.8% per annum indicates a more challenging outlook for Nine Entertainment Holdings, which has contributed to a lower consensus analyst price target, now decreased from A$1.98 to A$1.87.
What's in the News
- Nine Entertainment is considering acquiring Southern Cross Austereo (SCA), Australia's largest radio broadcaster, as it looks to deploy proceeds from the $3 billion sale of Domain.
- The company plans to sell its suite of talkback radio stations (2GB, 3AW, 4BC, 6PR) to comply with media ownership laws if it pursues an SCA bid, targeting a sale price between $50 million and $60 million.
- Approximately half of the $1.4 billion Domain windfall is expected to be returned to shareholders as a fully franked special dividend, with the remainder earmarked for acquisitions or investments.
- Billionaire Bruce Gordon, owner of WIN and Nine's largest shareholder, is considering increasing his stake or launching a takeover bid for Nine, facilitated by a potential drop in valuation after the Domain sale.
- Nine remains focused on retaining key live sport rights, particularly the NRL, and growing its streaming platform Stan amid industry expectations of a higher-value NRL broadcast contract in future negotiations.
Valuation Changes
Summary of Valuation Changes for Nine Entertainment Holdings
- The Consensus Analyst Price Target has fallen from A$1.98 to A$1.87.
- The Consensus Revenue Growth forecasts for Nine Entertainment Holdings has significantly fallen from -1.1% per annum to -2.8% per annum.
- The Future P/E for Nine Entertainment Holdings has fallen slightly from 19.01x to 18.40x.
Disclaimer
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