Nine Entertainment suffered a record one-day share price collapse on Thursday, tumbling 35.9% and wiping almost $1 billion off its market value.

The sharp fall was triggered bysha the company’s stock going ex-dividend following its $1.4 billion sale of Domain to US property giant CoStar.

Shares closed at $1.11, giving Nine a market capitalisation of $1.7 billion.

The plunge was largely expected, with investors no longer entitled to a special dividend of 49 cents per share, due to be paid out later this month.

The distribution equates to a $780 million capital return, funded directly from the Domain proceeds.

The ex-dividend adjustment also dragged down the broader Unmade Index of listed media and marketing stocks, which recorded its biggest-ever one-day fall of 20.3%.

Among the biggest losers were Seven West Media (down 3.5%), Ooh Media (down 2.6%) and Pureprofile (down 6.7%). Sports Entertainment Group dropped 7.3%, while Vinyl Group was a rare bright spot, surging 15%.

While the Domain sale strengthens Nine’s balance sheet, the company is simultaneously navigating a challenging trading environment.

Full-year revenue for FY25 rose 2% to $2.68 billion, buoyed by growth at streaming arm Stan and digital publishing. But group EBITDA fell 6% to $486 million, as broadcast television margins weakened.

CEO Matt Stanton has flagged more than $100 million in cost savings across the business, targeting efficiencies in Nine’s sprawling media portfolio.

Kerri Elstub had been at the company for 25 years

Among the first casualties of the cost-cutting drive was longtime executive Kerri Elstub, who exited after 25 years with the company as Nine moved to streamline its digital operations.

Elstub, who previously held senior roles on Today, A Current Affair and 9Honey, was known internally as a “Nine person through and through”.

Her departure highlights the tension between the company’s public push into digital-first strategies and the internal restructuring required to deliver savings.

Nine is also ploughing more than $140 million into technology and consumer platforms over the next two years, including AI, ad tech and the launch of advertising on Stan.

The broadcaster recently secured long-term rights to the English Premier League, a move designed to bolster Stan Sport and diversify revenues.

For investors, the dividend windfall provides immediate value. But with TV earnings shrinking and a digital overhaul underway, Nine must now show it can deliver sustainable growth without Domain.