NZME (NZM) H2 2024 earnings summary

Executive summary

• Operating revenue rose 2% to $345.9 million in 2024, driven by digital transformation and OneRoof growth despite a challenging advertising market.

• Statutory net loss after tax was $16 million, impacted by a $24 million non-cash impairment of intangible assets.

• EBITDA declined 4% to $54.2 million, reflecting resilience amid tough trading, with Q4 showing improvement.

• OneRoof delivered 31% revenue growth, a $4 million EBITDA improvement, and achieved the number one online audience.

• Focused on digital transformation, value realization from OneRoof, enhanced governance, and supporting New Zealand's economic recovery.

Financial highlights

• Operating EBITDA was $54.2 million, down from $56.2 million last year.

• Operating net profit after tax was $12.1 million, $2 million lower year-over-year.

• Cash flow from operations was $11.3 million, down from $17.3 million in 2023.

• Net debt increased to $24.1 million, within the target leverage range.

• Digital revenue reached $103 million, up from $95 million in 2023.

Outlook and guidance

• Early 2025 trading is positive, with Q1 advertising revenue expected to grow 4% after adjusting for the exit of community newspapers.

• OneRoof digital revenue up 30% year-on-year in January and February 2025.

• Improved operating results anticipated for 2025, contingent on continued market recovery and cost control.

• Lower capital investment expected in 2025, with continued focus on cost control and margin improvement.

• Business confidence and economic indicators point to a more optimistic 2025.