NZME (NZM) H1 2025 earnings summary

Executive summary

• Operating EBITDA rose 12% year-over-year to $23.9 million, driven by digital and audio growth, despite a 3% decline in operating revenue to $165.7 million due to community publication closures and weaker digital ad sales.

• Statutory net loss after tax was $0.4 million, impacted by $5.2 million in non-recurring restructuring and legal costs.

• Operating net profit after tax (excluding non-recurring items) increased 22% year-over-year.

• Free cash flow improved to $2.2 million, a $2.9 million increase from H1 2024.

• Board changes included the appointment of a new Chair and directors, with a focus on digital transformation and governance.

Financial highlights

• Operating revenue for H1 was $165.7 million, down 3% year-over-year, mainly due to the closure of community publications and weaker advertising.

• Operating EBITDA rose to $23.9 million, with margin improving to 12–14% year-over-year.

• Net debt at June 30, 2025, was $33.3 million, within the target leverage range of 0.5–1.0x EBITDA.

• Free cash flow was $2.2 million, up $2.9 million from H1 2024.

• Interim dividend of 3.0 cents per share declared, payable September 2025.

Outlook and guidance

• Full-year operating EBITDA expected in the range of $57–$59 million, supporting a dividend similar to 2024, subject to board approval.

• Full impact of $12 million in annualised cost reductions to be realised in H2 2025 and into 2026.

• Market recovery is anticipated in 2026, with continued focus on digital growth and cost management.

• Board focused on strategy review, digital revenue growth, and further cost optimisation.