Photo: RNZ/ Brad White
The media company said full year underlying profit was expected to be in a range of $63-66 million, which was better than the guidance it issued on 25 August of $60-63m.
"The improved forecast is driven by a better than anticipated revenue recovery from the Covid-19 crisis whilst costs continue to be closely managed," it said in statement to the market.
The company said fourth quarter advertising revenue for the year ending December was expected to be down 7 percent year-on-year, but that was a significant improvement on the first half performance.
NZME, which owns Newstalk ZB and The New Zealand Herald and other media brands, suffered a 47 percent drop in advertising revenue in April recovering to 23 percent in June.
The NZME board also announced a revised capital management plan and dividend policy.
It intended to pay dividends of between 30-50 percent of free cash flow subject to underlying profit being within its target range.
However, it said the terms of its debt facility restricted NZME from paying dividends until after 30 June.
NZME's net debt at 30 September was $50.9m, compared with $55.2m at 30 June.
It expected to further reduce its debt to less than $45m by the end of the year.