Nine Entertainment Completes QMS Deal and Eyes 60% Digital Revenue by FY27
Nine Entertainment completes QMS Media acquisition in strategic transformation milestone
Nine Entertainment Co. (ASX: NEC) has completed the Nine Entertainment QMS Media acquisition, finalising the purchase of 100% of QMS Media from Quadrant Private Equity on 31 March 2026. The transaction, first announced 30 January 2026, marks a pivotal moment in Nine’s strategic shift toward digital-led revenue streams.
The acquisition integrates QMS’s premium digital outdoor assets with Nine’s existing streaming, broadcast, and publishing platforms, creating what management describes as a unique cross-platform digital media proposition for advertisers. QMS is expected to contribute $92m of EBITDA in FY26 on a pro forma, pre-AASB16 basis. With full run-rate cost synergies of $20m factored in and adjusted for current interest rates, the deal is projected to deliver mid single digit earnings per share accretion.
The completion removes execution risk from the transaction. Financial benefits are now locked in, with integration and synergy realisation the primary focus for management over the coming quarters.
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Digital revenue to exceed 60% of Group total by FY27
The QMS acquisition enables a material structural shift in Nine’s revenue composition. Digital assets, comprising Stan, 9Now, digital mastheads, and the newly acquired Outdoor division, contributed approximately 45% of Group revenue in FY25. Following completion of the QMS deal, Nine estimates this will rise to more than 60% by FY27.
This repositioning reduces reliance on traditional broadcast revenue, which faces secular headwinds, and tilts the portfolio toward higher-growth digital advertising markets. The four digital growth assets driving this shift are:
- Stan (streaming platform)
- 9Now (broadcast video-on-demand)
- Digital mastheads (publishing)
- Outdoor (digital out-of-home advertising via QMS)
The shift positions Nine to capture advertising spend migrating from legacy formats to programmatic, data-driven channels. Digital outdoor, in particular, benefits from structural tailwinds as brands seek measurable, location-based campaign delivery.
What is digital out-of-home advertising?
Digital out-of-home advertising, or DOOH, refers to electronic billboards and screens located in high-traffic public spaces. Unlike traditional static billboards that display a single image for weeks or months, digital outdoor displays can rotate multiple advertisements throughout the day and update content remotely in real time.
QMS’s asset base includes large format digital billboards, street furniture (bus shelters, phone kiosks), retail screens, airport advertising, and transit placements on buses. These locations offer premium urban inventory in major Australian metropolitan areas.
The digital format allows advertisers to use programmatic buying platforms, target specific dayparts or audience profiles, and adjust campaigns based on performance data. This makes DOOH a higher-value product compared to traditional static outdoor advertising, capturing spend from brands seeking measurable, flexible campaign execution.
QMS financial performance shows double-digit revenue growth
QMS delivered strong operational performance in H1 FY26, with revenue growth across all major categories. Total Gross Media Revenue reached $155.8m, up 15.2% on H1 FY25. Large format billboards generated $93.5m (up 12.4%), while street furniture revenue came in at $48.0m (up 24.5%).
Total Net Revenue, which excludes agency commissions, was $151.2m, representing 14.2% growth. Underlying EBITDA on a pre-AASB16 basis reached $49.4m, up 10.0% on the prior corresponding period. The EBITDA margin came in at 32.7% for H1 FY26, compared to 33.9% in H1 FY25.
For the full FY26 period, QMS is estimated to generate Gross Media Revenue of approximately $360m and EBITDA of approximately $92m on a pre-AASB16 basis.
| Revenue Category | H1 FY25 | H1 FY26 | % Change |
|---|---|---|---|
| Large Format Billboards | $83.2m | $93.5m | 12.4% |
| Street Furniture | $38.5m | $48.0m | 24.5% |
| Other (Retail, Airports, Buses) | $13.6m | $14.3m | 5.5% |
| Total Gross Media Revenue | $135.3m | $155.8m | 15.2% |
| Underlying EBITDA (pre-AASB16) | $44.9m | $49.4m | 10.0% |
The double-digit revenue and EBITDA growth demonstrates QMS is a performing asset rather than a turnaround situation. The margin compression between periods reflects operating leverage dynamics as the business scales, but the underlying growth trajectory remains intact.
Management commentary on strategic rationale
Nine Group Chief Executive Officer Matt Stanton framed the completion as a defining moment for the company’s strategic evolution.
Matt Stanton, Nine Group Chief Executive Officer
“The completion of the QMS acquisition is a defining moment for Nine. QMS is a high-growth, digitally-led business that complements our existing premium content and data capabilities. With the addition of QMS, we can offer advertisers an unparalleled cross-platform reach, while diversifying our revenue streams towards structural growth areas. Now the acquisition is complete, we are finalising the alignment of the Nine and QMS go to market sales strategies which will allow clients to capitalise on this powerful combination.”
QMS Chief Executive Officer John O’Neill highlighted the integration opportunity and the scale advantages the combined entity offers advertisers.
John O’Neill, Chief Executive Officer of QMS
“This acquisition brings together our premium digital outdoor portfolio with Nine’s streaming, broadcast and publishing assets to create a powerful, integrated media offering for advertisers, agencies and partners. This combination positions us to deliver more data-driven, innovative solutions at scale, while also creating fantastic new opportunities for our people as part of a larger, more connected media ecosystem. This is an exciting new chapter for QMS, and I’m looking forward to what we will achieve together.”
Both executives emphasised the alignment of go-to-market strategies now underway, which will enable advertisers to access Nine’s expanded digital inventory through integrated sales channels.
Broader portfolio optimisation in progress
The QMS completion forms part of a wider portfolio restructure at Nine. The company is simultaneously executing the sale of Nine Radio to the Laundy Family Office, which is expected to complete by the end of April 2026. A separate transaction involves converting Nine’s television interests in Northern NSW and Darwin to an affiliate structure, expected to complete by the end of May 2026, subject to Nine shareholder and ACCC approval.
These transactions collectively streamline Nine’s portfolio toward core digital and premium broadcast assets. The radio divestment removes a non-core asset, while the regional affiliate conversion reduces operational complexity in markets where Nine does not have full ownership of transmission infrastructure.
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What comes next for Nine and QMS
Integration and sales alignment is now the immediate priority for management. The company is finalising the alignment of Nine and QMS go-to-market sales strategies to allow advertisers to access the combined cross-platform offering through unified buying channels.
Full financial visibility on QMS’s contribution will come with Nine’s FY26 results, scheduled for release on 26 August 2026. The report will include pro forma FY26 results for Nine Outdoor, which is the internal name for the QMS division post-acquisition.
Going forward, Nine will report Group EBITDA on a post-AASB16 basis, while also providing pre-AASB16 EBITDA for Nine Outdoor. AASB16 is the accounting standard for leases, effective from 1 January 2019, which recognises lease expenses within depreciation and interest rather than as operating expenses. Given the significant lease component in outdoor advertising (billboards are typically leased sites), Nine will provide both metrics to allow investors to assess underlying cash profitability.
The $20m full run-rate cost synergies represent a key metric for investors to monitor. Management has not disclosed the timeframe for full realisation, but the FY26 results and subsequent FY27 guidance will provide clarity on synergy capture progress.
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