Nine Entertainment Exits Radio, Buys QMS for $850M
Nine's $850M QMS buy and radio exit signals Australia's biggest media pivot to DOOH. The deal creates 58% market dominance, targeting 60% digital revenue by 2027.
Nine Entertainment announced a sweeping portfolio restructuring on Thursday, acquiring outdoor advertising firm QMS for $850 million while simultaneously selling its radio business to hospitality group Laundy for $56 million. The moves mark a decisive shift from traditional broadcast toward digital-out-of-home (DOOH) advertising platforms.
Media Giant Pivots to Digital Outdoor
The QMS acquisition, priced at 5.3 times EBITDA, combines Nine's broadcast and streaming assets with QMS's network of over 5,000 digital screens across Australia. Nine also divested its regional television business NBN to Win for $15 million, completing a three-part restructuring aimed at eliminating low-margin broadcast assets.
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Nine's radio division, which includes Sydney's 2GB and Melbourne's 3AW among seven stations, was projected to generate just $6 million in EBITDA by 2026. By contrast, QMS brings $113 million in pro forma EBITDA, representing a vastly different growth trajectory. The Laundy Group, a pub and hospitality conglomerate, paid 9.3 times FY25 EBITDA for the radio assets in its first non-hospitality investment.
"Today's announcements mark a critical milestone in our Nine2028 transformation, enabling the Group to withstand industry disruption and deliver long-term sustainable value," said Matt Stanton, CEO of Nine Entertainment.
The market responded positively to Nine's strategy. Shares rose 5.05% following the announcement, while competitor Ooh Media fell 3.86% as investors recognized the competitive threat from a newly consolidated outdoor advertising landscape.
Targeting 60% Digital Revenue by 2027
Nine's restructuring accelerates its digital transformation goals. The company aims to increase digital revenue from 45% in FY25 to 60% by FY27, with the QMS acquisition serving as a primary growth engine. The combined entity will control approximately 58% of Australia's DOOH market, creating immediate competitive pressure on remaining outdoor advertising players.
The integration promises $20 million in annual cost combined benefits by FY29 through back-office consolidation and bundled advertising deals. Nine plans to use its Nine Ad Manager platform to offer unified campaigns across television, streaming service Stan (which reaches 2.3 million monthly active users), publishing properties including the Sydney Morning Herald, and QMS's outdoor network.
Nine will also apply $178 million in tax losses from its previous Domain sale to optimize the QMS transaction's financial structure. Post-deal, the company's net debt to EBITDA ratio stands at 1.8 times, with management targeting a reduction to between 1.0 and 1.5 times by FY27.
Broader Market Consolidation Trend
The restructuring reflects wider consolidation in Australia's advertising market as media companies prioritize digital platforms over traditional broadcast. Nine's "sofa to street" strategy aims to capture advertising budgets shifting toward integrated digital solutions that span streaming, mobile, and outdoor formats.
The Unmade Index, which tracks Australian media stocks, gained 1.79% to close the week at 443.9 points. Sports Entertainment rose 5.77%, while Vinyl increased 3.57% and Southern Cross gained 1.59%. ARN fell 2.63%, and Enero declined 3.88%.
For Ooh Media, the Nine-QMS combination eliminates a potential acquirer while creating a formidable competitor with significantly deeper pockets and cross-platform advertising capabilities. The market's negative reaction to Ooh Media suggests investors expect margin pressure and potential market share losses as Nine uses its broadcast relationships to drive outdoor advertising sales.
The transaction positions Nine to compete more effectively against regional media conglomerates pursuing similar integrated digital advertising strategies across Asia-Pacific markets.
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