Media company NZME has reported a significant financial downturn for the full year, posting a net loss of $16 million after a non-cash writedown of $24 million on its publishing assets.
Key figures for the year ending 2024, compared to the previous year:
- $16.0m net loss vs. $12.2m net profit
- $345.9m revenue vs. $340.8m
- $54.2m underlying profit vs. $56.24m
- $296m expenses vs. $290.4m
- Final dividend: 6 cents a share vs. 6 cps
The owner of the New Zealand Herald and several radio stations, including Newstalk ZB, noted that the recovery of its Communities publications has been slower than expected. However, the writedown did not impact its cash flow or operating profit.
The company has also reported a 2% increase in operating revenue, with net debt remaining within the middle of its target range. Digital revenue growth contributed to the overall performance, with OneRoof’s revenue increasing by 51%.
“Despite continued challenges across the media industry, NZME has performed well thanks to our strong digital strategy and our uniqueness in offering a strong, diverse portfolio of platforms for advertisers,” NZME chief executive Michael Boggs said.
Although core digital advertising revenue and digital subscription revenue saw improvements, the overall performance of digital publishing was slightly lower than in 2023. Additionally, overall cash flow declined as print advertising revenue continued to decrease.
Boggs confirmed that a strategic review of the property platform OneRoof is underway. The review includes exploring opportunities for external capital and strategies to accelerate growth.
He also stated plans to increase its investment in video content, emphasising that the associated costs will be offset by savings in other areas.
“We are reshaping our newsroom, and there will be less people in our newsroom overall, here at NZME, but overall, after investing into our new product of video, we still believe we will save $4m on an annualised basis.”
The economic headwind during the second and third quarters created a challenging year; however, NZME noted that there was some improvement in the fourth quarter, which has continued into the first quarter of 2025.
The company anticipates a 4% growth in advertising revenue for the first quarter ending in March, following the exit of community newspapers. With ongoing improvements in market advertising demand, NZME also expects to achieve a better operating result throughout 2025, although it did not provide specific guidance.