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NZME Limited (NZM) investor relations material
NZME Limited H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Operating EBITDA rose 12% year-over-year to $23.9 million, driven by audio and digital publishing gains, despite a 3% decline in operating revenue to $165.7 million due to community publication closures and lower digital ad sales.
Statutory net loss after tax was $0.4 million, impacted by $5.2 million in non-recurring restructuring and legal costs; operating NPAT increased 22% to $3.4 million year-over-year.
Free cash flow improved to $2.2 million from a negative $0.7 million in H1 2024, and an interim dividend of 3.0 cents per share was declared.
Board changes included the appointment of a new Chair and two new directors, with a focus on digital transformation and governance.
Strategic focus on accelerating OneRoof's growth, enhancing governance, and digital transformation initiatives.
Financial highlights
Operating revenue was $165.7 million, down 3% year-over-year due to the closure of community newspapers and weaker digital ad markets.
Operating expenses decreased 5% year-over-year, reflecting cost reductions and restructuring, with annualized savings of $12 million expected.
Net debt increased to $33.3 million, within the target leverage range, mainly due to dividend payments.
Basic and diluted loss per share was (0.21) cents, compared to earnings per share of 1.01 and 0.99 cents in H1 2024.
Interim dividend of 3.0 cents per share declared, payable September 2025.
Outlook and guidance
Full-year operating EBITDA expected in the range of $57 million–$59 million, supporting a dividend similar to 2024.
Full impact of cost reductions to be realized in H2 2025 and into 2026.
Market recovery is anticipated to accelerate in 2026, with continued focus on cost management and digital growth.
Board focused on strategy review, digital revenue growth, and further cost optimization.
July saw a 2% year-over-year increase in advertising revenue (adjusted for community exits).
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