NZME (NZM) H1 2026 earnings summary

Executive summary

• Operating revenue for H1 2026 grew 1% year-over-year to $167.0m, led by strong Audio performance and disciplined cost control, with statutory NPAT improving from a $0.4m loss to a $6.6m profit.

• Operating EBITDA increased 11% to $26.5m, with positive operating leverage and margin improvement.

• Free cash flow rose by $5.1m to $7.3m, and net debt was reduced by $13.9m to $19.4m.

• Interim dividend of 3 cents per share declared, payable 23 September 2026.

• Core businesses—Audio, Publishing, and OneRoof—remained resilient, with Audio as the principal growth driver.

Financial highlights

• Advertising revenue grew 2% to $118.6m, with Audio up 8% and digital audio up 16%.

• Operating expenses decreased 1% to $140.5m, reflecting cost-saving initiatives.

• Operating EBITDA margin improved to 15.9%, up 146bps from H1 2025.

• Free cash flow improved to $7.3m, and net assets stood at $93.3m.

• Interim dividend of 3cps declared, consistent with policy.

Outlook and guidance

• Trading environment expected to remain volatile due to soft consumer confidence and restrained discretionary spending, with gradual recovery anticipated through H2 2026 and into 2027.

• Full-year 2026 operating EBITDA expected to exceed 2025, assuming no material market deterioration.

• Focus remains on cost discipline, productivity, and investment in digital, subscriptions, and AI.