NZME Reports 3.1% Revenue Decline, 12% Rise in Operating EBITDA H1 2025
NZME Limited reported a 3.1% revenue decline for H1 2025 but delivered a 12% rise in operating EBITDA, driven by digital growth and cost efficiencies. The company declared a 3 cent interim dividend amid ongoing economic challenges.
- Operating revenue down 3.1% to NZD 165.7 million
- Operating EBITDA up nearly 12% to NZD 23.9 million
- Statutory net loss after tax of NZD 0.4 million due to non-recurring costs
- OneRoof digital listings revenue grew 16%, outperforming market
- Interim dividend declared at 3 cents per share, payable September 24
Financial Performance Amid Market Headwinds
New Zealand Media and Entertainment (NZME) has released its half-year results for the six months ending 30 June 2025, revealing a nuanced performance in a challenging economic environment. The company’s operating revenue slipped 3.1% to NZD 165.7 million, primarily reflecting the closure of its community newspaper network in late 2024 and a softer digital advertising market.
Despite this revenue contraction, NZME’s operating EBITDA rose by nearly 12% to NZD 23.9 million, underscoring effective cost management and growth in higher-margin digital segments. The statutory net loss after tax was NZD 0.4 million, impacted by NZD 5.2 million in one-off restructuring and legal expenses related to a complex Annual Shareholders’ Meeting.
Digital Growth Drives Divisional Success
The company’s digital transformation continues to bear fruit, with the OneRoof property platform delivering a standout performance. OneRoof’s residential listings revenue surged 16%, significantly outpacing the 1% growth in the broader New Zealand real estate market. This growth was supported by a 32% increase in listings upgrades and a successful nationwide sales restructure.
NZME’s Audio division also posted gains, with overall revenue rising to NZD 57.1 million and digital audio revenue up 6%. Podcast revenue climbed to NZD 1.7 million, now accounting for 32% of digital audio income, reflecting growing audience engagement. Meanwhile, the Publishing division saw a 5% increase in subscriptions, driven by sustained digital uptake despite print subscriber declines and the exit of community newspapers.
Governance and Strategic Initiatives
Governance enhancements marked the period, with the appointment of three new board directors bringing expertise in media, business turnarounds, and digital marketplaces. An Editorial Advisory Board was established to provide independent counsel on editorial standards and digital initiatives, chaired by award-winning journalist Miriyana Alexander.
NZME is also focused on accelerating OneRoof’s growth through a strategic review and the formation of a dedicated advisory board. Cost reduction initiatives have delivered NZD 12 million in annualised savings, with further benefits expected in the second half of 2025 and into 2026.
Outlook and Dividend Policy
Looking ahead, NZME anticipates a slow but steady market recovery, with economists forecasting improvements in 2026. The company reported a 2% year-on-year increase in advertising revenue for July 2025, adjusted for the community newspaper exit, signaling early signs of momentum.
Based on current performance, NZME expects full-year operating EBITDA between NZD 57 million and 59 million. The Board declared a fully imputed interim dividend of 3 cents per share, payable on 24 September 2025, with the potential for a full-year dividend consistent with 2024 levels, subject to board approval.
Bottom Line?
NZME’s digital pivot and cost discipline have bolstered profitability, but sustained economic uncertainty will test its growth ambitions in the months ahead.
Questions in the middle?
- How will NZME’s strategic review reshape OneRoof’s growth trajectory?
- What impact will ongoing economic volatility have on NZME’s advertising revenue streams?
- Can the new governance structure accelerate NZME’s digital transformation effectively?
