NZME made a net loss of $16 million last year. Photo: RNZ/ Brad White
Media company NZME has reported a full year net loss after taking a non-cash writedown of $24 million on its publishing assets, along with a drop in underlying profit.
The owner of the New Zealand Herald and various radio stations including Newstalk ZB, said there had been a slower than anticipated market recovery of its Communities publications, though the writedown did not affect its cash flow or operating profit.
Key numbers for the year ended 2024 compared with a year ago:
- Net loss ($16.0m) vs $12.2m net profit
- Revenue $345.9m vs $340.8.6m
- Underlying profit $54.2m vs $56.24m
- Expenses $296m vs $290.4m
- Final dividend 6 cents a share vs 6cps
Despite challenging economic conditions the company said operating revenue was up 2 percent, with net debt at the middle of its target range.
Digital revenue growth helped boost the overall result, with OneRoof revenue up 51 percent, with improved listings, it said.
"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," chief executive Michael Boggs said.
"Our focus on product profitability and simplifying our business in 2024 was critical to NZME remaining strong and profitable."
While core digital advertising revenue and digital subscription revenue improved, overall the digital publishing performance was slightly lower than 2023.
Overall cashflow was also down, as print advertising revenue continued to trend down.
Boggs said a strategic review of OneRoof is underway, which included potential for external capital and opportunities to accelerate growth.
"We really want to understand the value that has been created for one roof and how we make sure that it's realized for our shareholders, so we've appointed Jarden Investment bank to undertake a strategic review of OneRoof," Boggs said.
"They'll look at the potential separation of it to a separate business, an independent board as part of it.
"I think it would still clearly be part of NZME in the short to medium term . . . But I think all options are open as to the review and where the long term takes us."
Boggs said NZME will also invest more in video, though costs will be offset by other savings.
"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 annualized basis."
NZME said a strategic review of OneRoof was underway, which included potential for external capital and opportunities to accelerate growth. An update would be released with its half year result in August.
NZME said the economic downturn in the second and third quarters made for a tough year, though the fourth quarter showed some improvement, which had continued into the first quarter of 2025.
It said the first quarter ending in March was expected to deliver advertising revenue growth of 4 percent after the exit of community newspapers.
Given a continuing improvement in market advertising demand, NZME expected to deliver and improved operating result during 2025, but did not provide a guidance.
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