NZME (NZM) H2 2025 earnings summary

Executive summary

• Delivered strong improvement in underlying profitability in 2025, with disciplined cost management and improved performance across all core divisions.

• Operating EBITDA rose 15% year-over-year to NZD 62.3 million, driven by cost savings and growth in core divisions.

• Returned to statutory profit of NZD 13.1 million, reversing a NZD 16 million loss in 2024, which included a NZD 24 million non-cash impairment.

• Free cash flow improved to NZD 25.4 million, up NZD 14.1 million from the prior year.

• Maintained robust balance sheet, reducing net debt and leverage, supporting shareholder returns.

Financial highlights

• Operating revenue was NZD 345.1 million, down 1% year-over-year due to closure of unprofitable community newspapers; underlying revenue up 1%.

• Operating expenses fell 4% to NZD 282.8 million, reflecting targeted savings and lower print volumes.

• Operating NPAT increased 46% to NZD 17.7 million; operating EPS up 45% to NZD 0.094.

• Total dividends declared at NZD 0.09 per share, payout ratio of 67% of free cash flow.

• Net debt reduced to NZD 15.5 million, with a leverage ratio of 0.3x EBITDA.

Outlook and guidance

• Cautiously optimistic for 2026, with gradual recovery expected amid lingering inflation and global uncertainty.

• Advertising revenues in Q1 2026 tracking over 3% growth year-on-year.

• Full annualised impact of 2025 savings (NZD 3 million) to be realized in 2026, with $12 million in annualised cost savings from restructuring.

• No major new cost-out programs planned, but ongoing focus on cost discipline and divisional accountability for growth.

• Continued focus on OneRoof expansion.