Media company NZME's full-year net profit is down 48 percent, with a 5 percent drop in revenue. Photo: RNZ/ Brad White
Media company NZME's full-year net profit is down 48 percent, with a 5 percent drop in revenue.
The owner of the New Zealand Herald and Newstalk ZB said the result reflected a challenging year, with high inflation and interest rates hitting advertising revenue.
Key numbers for the year ended 2023 compared with a year ago:
- net profit $12.2m vs $22.7m
- revenue $347.6m vs $355.4m
- underlying profit $293.0m vs $301.4m
- full-year dividend 9 cents per share vs 9cps, plus special dividend of 5cps
"We are focused on continuing to accelerate our digital transformation efforts and executing our refreshed strategy, which we are confident will see us growing our audio, publishing and OneRoof divisions," chief executive Michael Boggs said.
Chair Barbara Chapman said a 2026 digital growth strategy was about NZME delivering superior returns across the business.
"Globally, we know that digital-centric businesses are valued at much higher multiples than print peers, and NZME's relentless focus on being digital-led, whilst also maximising print revenues, will continue to provide substantial earnings and value for shareholders well into the future."
Boggs said the company was not looking to make cost-cutting measures to improve its bottom line, though continued to focus on improving efficiencies.
"Our radio revenues have been very stable… and we are growing share and our print business is a really big contributor and we expect that to continue for many many years ahead," he said, adding NZME was continuing to invest for digital growth.
Boggs said the outlook for 2024 was positive, with January and February advertising revenues pacing ahead of last year, along with improved business and consumer confidence and a recovering real estate market.
"We are well-positioned to deliver improved results as market conditions improve. We remain conscious of continued cost pressures across our business and will focus on efficiency improvement opportunities.
"OneRoof has achieved digital revenue growth of more than 80 percent across January and February 2024."
However, he did not offer financial guidance for the current year.