NZME (NZM) H2 2025 earnings summary

Executive summary

• Operating EBITDA rose 15% year-over-year to NZD 62.3 million, driven by disciplined cost management, digital strategy, and growth in core divisions.

• Statutory Net Profit After Tax reached NZD 13.1 million, reversing a NZD 16 million loss in 2024, which included a NZD 24 million non-cash impairment.

• Free cash flow increased to NZD 25.4 million, up NZD 14.1 million from the prior year.

• Maintained a robust balance sheet, reducing net debt and leverage, supporting ongoing shareholder returns.

• Continued investment in innovation, notably in OneRoof, digital/video-led news, and new product launches.

Financial highlights

• Operating revenue was NZD 345.1 million, down 1% year-over-year due to closure of unprofitable community newspapers; underlying/normalised revenue up 1%.

• Operating expenses fell 4% to NZD 282.8 million, reflecting targeted savings and lower print volumes.

• Operating NPAT increased 46% to NZD 17.7 million; operating EPS up 45% to NZD 0.094.

• Total dividends declared at NZD 0.09 per share, payout ratio of 67% of free cash flow.

• Net debt reduced by NZD 8.6 million to NZD 15.5 million, leverage ratio at 0.3x EBITDA.

Outlook and guidance

• Cautiously optimistic for 2026, with Q1 advertising revenues tracking 3% year-over-year growth.

• Full annualised impact of 2025 savings (NZD 12 million) to be realised in 2026, with an additional NZD 3 million improvement expected.

• No major new cost-out programs planned, but ongoing focus on cost discipline and digital expansion, especially OneRoof.