NZME says its underlying profit was expected to be between $57 million and $59m in the year ending December. Photo: RNZ/ Brad White
Media company NZME says its profit will not meet expectations, amid a challenging economic environment and volatile advertising revenue.
The publisher of the NZ Herald and operator of the Newstalk ZB radio network said underlying profit was expected to be between $57 million and $59m in the year ending December, compared with its earlier guidance range of $59m to $64m.
The downgrade followed a steep 76 percent drop in first-half net profit to $2m.
Third-quarter advertising revenue was down 2 percent on the year earlier, though the fourth quarter had been slightly more positive with initial growth of 1 percent.
November, the largest revenue month of the year, and December were currently "pacing slower, with a number of customer campaigns being cancelled or deferred until 2024", the company said in a market report.
NZME said it was continuing its transition to a digital-led business and would update shareholders at its investor day on 15 November.