Nine Entertainment Delivers Special Dividend After Domain Sale

Highlights:

• Share Price Adjustment: Nine Entertainment Co Holdings Limited (ASX: NEC) opened 34% lower, reflecting the technical impact of its special dividend.
• Domain Sale Windfall: The company sold its 60% stake in Domain to CoStar for AUD $1.4 billion, funding a 49c per share special dividend worth ~AUD $780 million.
• Strategic Focus: CEO Matt Stanton stressed capital returns and organic growth over major acquisitions, setting a high bar for future deals.

Share Price Drop Tied to Dividend Mechanics

Nine Entertainment Co Holdings Limited (ASX: NEC) opened 34% lower in early trade, a move that may have raised eyebrows among investors. However, the sharp decline reflects the technical adjustment for the company’s recently declared special dividend, rather than a sudden deterioration in its fundamentals.

Domain Stake Sale Unlocks Cash

On 9 May 2025, Nine finalised the sale of its 60% interest in online real estate platform Domain to U.S.-based CoStar Group for AUD $1.4 billion. Proceeds from the transaction have been directed to shareholders, with the board approving a special dividend of 49 cents per share. At the time of writing, this equates to a total payout of approximately AUD $780 million, marking one of the company’s most significant capital returns in recent years.

Focus on Shareholder Returns Over Deals

Management has signalled that returning capital is a higher priority than pursuing large-scale acquisitions. Although Nine has previously been linked to opportunities in radio and outdoor advertising, CEO Matt Stanton has reinforced that any potential deal would need to meet a high strategic threshold.

Outlook for Investors

For shareholders, the immediate impact is a meaningful one-off return in addition to ordinary dividends. However, analysts caution that such elevated payouts should not be considered a recurring feature, as they are tied directly to the one-time sale of Domain. Going forward, Nine’s performance will hinge on its ability to grow earnings across its broadcasting, publishing, and digital assets. With the special dividend now priced in, investors will be watching closely to see how Nine Entertainment balances reinvestment with ongoing shareholder returns in the months ahead.

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