NZME Limited Analysis

Overview

NZME is a leading integrated media company in New Zealand, with a portfolio of publishing, radio, digital and e-commerce brands including the New Zealand Herald, NewstalkZB and GrabOne.

NZME was demergered from its parent, APN News & Media in June 2016. It is listed on NZX under the code of NZM from 27 June 2016.

Performance

The following information was extracted from NZME Limited's full year, released on 26 February 2025:

NZME announces revenue growth in first half despite challenging market

AUCKLAND, 26 February 2025: NZME Limited (NZX: NZM, ASX: NZM) has announced its financial results for the full year ended 31 December 2024 reporting Operating Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)1 of $54.2 million.

The company reported a Statutory Net Loss After Tax of $16.0 million after a $24 million non-cash impairment of intangible assets. Despite challenging economic conditions impacting the media industry with continued weaker demand in advertising, NZME lifted its Operating Revenue1 for the year to $345.9 million, up 2% from $340.8 million in 2023.

Key highlights:

• As one of New Zealand’s largest media companies, NZME continues to reach nine in every ten Kiwis2, with large scale audiences engaging with its brands across Audio, Publishing and OneRoof.
• 2.5 million Kiwis turn to NZME’s digital platforms each month3 alone, and combined with our terrestrial audio and print publications, NZME has a total audience of 3.5 million people3.
• OneRoof has been a standout performer, once again demonstrating its significant potential in creating value for shareholders, reporting positive EBITDA of $2.7 million compared to an EBITDA loss in 2023.
• OneRoof grew listings enquiries by 32% year on year and overtook its nearest competitor to become number one for online web audience for the first time in November 2024 and has continued to do so for the two months following4.
• NZME’s digital audio performance has been particularly strong, with digital audio revenue reaching $10.8 million - a 32% increase on the previous year’s $8.2 million.
• Podcast revenue has grown 67% year on year, while digital radio streaming revenue has increased by 19%.
• NZME’s digital subscription business demonstrated resilience in a challenging market, with revenue growing 10% to $22.6 million.