NZME (NZM) H2 2024 earnings summary

Executive summary

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

• Statutory net loss after tax was NZD 16 million, impacted by a NZD 24 million non-cash impairment of publishing intangibles.

• EBITDA declined 4% to NZD 54.2 million due to tough trading in Q2 and Q3, but Q4 showed improvement.

• Outperformed the broader media market, especially in digital and agency advertising.

• Final dividend of NZD 0.06 per share declared, consistent with last year and payable March 2025.

Financial highlights

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

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

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

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

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

Outlook and guidance

• Early 2025 trading is positive, with Q1 advertising revenue expected to grow 4% and OneRoof digital revenue up 30% year-on-year in Jan-Feb 2025.

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

• Market conditions are improving, with business confidence rising and house prices expected to recover.

• Improved operating results expected in 2025, subject to continued market recovery.