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 half year, released on 27 August 2024:

NZME announces revenue growth in first half despite challenging market

AUCKLAND, 27 August 2024: NZME Limited (NZX: NZM, ASX: NZM) has today announced its financial results for the half year ended 30 June 2024, reporting Statutory Net Profit After Tax (NPAT) of $1.9 million.

The company also reported Operating Revenue of $171.0 million for the first half of the year – $5.0 million higher the first half of 2023. Operating Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was $21.4 million compared to $21.3 million in the previous corresponding period.

Key highlights:

• An increase in Operating Revenue1 and significant growth in digital revenue to $50.1 million this half, up $5.9 million on the first half of 2023.
• OneRoof has been a standout performer, with digital growth leading to a profit for the half.
• The audience gap between OneRoof and the number one property platform in market has reduced to a mere 10%2.
• OneRoof listings enquiries increased by 29% and digital listings revenue has grown by 63%.
• Digital audio revenue increased 33% year on year.
• Podcast downloads hit 48 million for the last 12 months – up 12%3, with podcast revenues growing 68% for the half.
• Streaming radio revenue also increased by 16% over the same period and total listening hours on the platform was up 14% in the last 12 months4.
• NZME’s digital publishing business delivered an increase in profitability in the half, with digital subscription revenue up 13% and digital subscriptions up 11% on 30 June 2023.