NZME (NZM) H1 2025 earnings summary

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).