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NEC: Targeted Media Acquisitions Will Support Future Upside Despite Radio Divestment Uncertainty

Digital Integration And Premium Content Will Redefine Media Future

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NEC
AnalystConsensusTarget
Not Invested
Published 17 Feb 2025

Update shared on 07 Dec 2025

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-11.9%
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-0.4%

Analysts have modestly revised their price target on Nine Entertainment Holdings upward by AUD 0.00, reflecting slightly lower perceived risk and a marginally cheaper forward earnings multiple, while keeping assumptions for revenue growth and profit margins effectively unchanged.

What's in the News

  • CEO Matt Stanton signalled Nine will pursue targeted bolt on acquisitions using proceeds from the Domain real estate stake, focusing on adjacent businesses that complement its print and Channel 9 broadcast portfolio rather than large transformational deals (The Australian).
  • Stanton cited Dow Jones as a model for methodical expansion through smaller, strategic acquisitions in areas such as data, indices and intelligence services. This indicates Nine is open to inorganic growth in the right segments (The Australian).
  • Nine has acknowledged unsolicited offers for its talkback radio network, including stations 2GB, 3AW, 4BC and 6PR, and is conducting an internal review to assess the value and future of these audio assets (The Australian).
  • Prospective buyers are reportedly valuing the radio assets at AUD 35 million to AUD 40 million, below Nine’s hoped for AUD 60 million. High profile bidder John Singleton is exploring a return to the network on the condition of a bargain price (The Australian).
  • Alternative bidder Australian Digital Holdings has already tabled a AUD 42 million all cash proposal. Nine is keeping options open on a full sale, partial sale or retention with further investment, and reiterates its commitment to broader audio and podcasting platforms (The Australian).

Valuation Changes

  • Fair Value remains unchanged at A$1.44 per share, indicating no revision to the intrinsic value estimate.
  • The Discount Rate has been reduced slightly from 7.07 percent to 7.03 percent, reflecting a marginally lower perceived risk profile.
  • Revenue Growth is effectively unchanged at around negative 4.11 percent, implying no material adjustment to top line expectations.
  • The Net Profit Margin is stable at approximately 6.98 percent, with no meaningful change to profitability assumptions.
  • The Future P/E has edged down slightly from 16.91x to 16.90x, indicating a marginally cheaper forward earnings multiple.

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Disclaimer

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