NZME (NZM) Investor Presentation summary

Strategy and business overview

• Focused on a digital-led strategy across property (OneRoof), audio, and news platforms to drive shareholder returns and differentiate from competitors.

• OneRoof, now profitable, is positioned to become a strong number two in the property sector, with ongoing product enhancements and revenue growth from both listings and non-listings products.

• Audio business targets all New Zealanders, with leading radio and podcast brands, and aims to grow market share and digital audio revenue.

• Publishing division is transitioning profit pools from print to digital, with a clear separation of digital and print operations to maximize profitability and cash flow.

• Strategic priorities include growing digital subscriptions, increasing digital advertising, and leveraging high-value audience relationships across platforms.

Performance highlights

• NZME reaches 9 out of 10 New Zealanders monthly, with strong market shares in audio and publishing (40-50%).

• In 2023, operating revenue was $346.6m (down 5%), operating EBITDA was $56.2m (down 13%), and statutory NPAT was $12.2m (down 46%).

• Publishing subscriptions grew to 222,000, with 130,000 digital-only subscriptions.

• OneRoof digital revenue rose 5% year-on-year despite a 12% drop in new residential listings; Q1 2024 saw a 27% increase in listings and $1.2m EBITDA.

• Digital revenues now exceed $100m annually, representing 29% of total revenue, with a 19% CAGR from 2019-2023.

Business unit performance

• OneRoof's digital audience reached 655,000, with ongoing product improvements and a narrowing gap to the market leader.

• Audio division achieved a 43.1% radio market revenue share in 2023, the highest since 2016, and is the leading podcast publisher in New Zealand.

• Digital publishing revenue and EBITDA are expected to surpass print by 2026, with digital advertising and subscription revenue as key growth drivers.

• Print publishing remains profitable but is expected to decline as digital transitions accelerate.

• NZME outperformed the broader market in advertising revenue trends during a challenging economic period.