Media company NZME had a strong start to the year with a significant reduction in debt and an increase in subscriber numbers.
The New Zealand Herald subscriber base grew to 178,000, NZME reported. Photo: RNZ / Brad White
The company also announced the conditional sale of its GrabOne business to Global Marketplace NZ for $17.5 million, expected to be completed by 31 October.
Key numbers:
(For the 6 months to June 2021 against 2020)
- Net profit after tax - $5.6m v $3m, up 85%
- Revenue - $173.0m v $160.7m, up 9%
- Net Debt - $18.6m v $33.8m, down 55%
- Dividend - 3.0 cps v nil
The New Zealand Herald subscriber base grew to 178,000 including 67,000 paid digital New Zealand Herald premium subscribers.
The company said it was in a position to approve a capital return to shareholders but had paused its decision given the uncertainties posed by the current alert level 4.
While advertising revenues were approaching 2019 levels, the company said the outlook was one of "cautious optimism."
"We should all be under no illusions that ongoing Covid-19 related issues, such as the nationwide lockdown currently in place, will continue to impact the recovery," board chair Barbara Chapman said.
"Our commercial partners remain wary of Covid-19 cases, uncertainty over international travel bubbles and the more recent challenges of labour force shortages and inflationary pressures on their cost bases."