New Zealand Media and Entertainment NZME (ASX:NZM) reported a return to statutory profit in 2025 and highlighted improving second-half trading conditions, driven by cost reductions and stronger performance across its divisions, according to management on the company’s annual results webcast.
Group result: profit rebound, EBITDA growth and steady dividends
Chief Executive Officer Michael Boggs said 2025 was a year of “disciplined governance and financial management,” with tight cost control alongside continued investment in key growth areas including OneRoof and video-led news products. NZME launched Herald NOW and iHeartCountry during the year, which Boggs said aligned with changing audience behavior.
Operating revenue was NZD 345.1 million, down 1% on a reported basis. Management attributed the decline largely to the strategic decision to close 14 unprofitable community newspaper titles in late 2024. On a normalized basis (excluding those titles), management said underlying operating revenue increased 1% year-over-year.
Operating EBITDA increased 15% to NZD 62.3 million, up from NZD 54.2 million in 2024, with management citing an acceleration of growth in the second half. Operating NPAT was NZD 17.7 million and earnings per share rose to NZD 0.094 from NZD 0.065.
The board declared total dividends of NZD 0.09 per share, unchanged from 2024. Boggs said the payout equated to 67% of free cash flow and was consistent with the company’s dividend policy of paying 50% to 80% of free cash flow.
Cost actions and balance sheet strength
New CFO Jo Hempstead said operating expenses declined 4% year-over-year, supported by savings initiatives implemented early in the financial year and ongoing cost discipline. She said operating NPAT increased 46% year-over-year, reflecting improved earnings quality despite a “still challenging market.”
Hempstead detailed a NZD 13 million reduction in operating expenses, including lower people costs following restructuring, reduced print and distribution costs in line with lower volumes and the exit of community publications, and significantly lower third-party fulfillment costs due to the reduction in performance marketing activity. Selling and marketing costs increased modestly, which she attributed to a higher agency mix, and non-recurring expenses related primarily to restructuring undertaken in the first quarter.
Cash flow from operations rose to NZD 50.4 million, driven by higher operating earnings and lower tax paid. Capital expenditure declined following higher investment levels in digital product development in 2024, and free cash flow increased to NZD 25.4 million.
Net debt fell NZD 8.6 million to NZD 15.5 million, and leverage ended the year at 0.3 times EBITDA, below the company’s 0.5x to 1.0x target range. Management emphasized the strengthened balance sheet provided flexibility while supporting shareholder returns.
Divisional performance: OneRoof, Audio and Publishing
Management said EBITDA growth was “broad-based across the group.” Boggs cited OneRoof EBITDA growth of 32%, Audio EBITDA growth of 23%, Digital Publishing EBITDA growth of 31%, and a 2% decline in Print Publishing EBITDA despite “ongoing structural pressures.”
- OneRoof: Boggs described OneRoof as a key strategic growth asset. He said digital residential listings revenue rose 19% in 2025, compared with approximately 3% growth in new market listings, attributing the outperformance to higher upgrade conversion rates, improved product mix, and stronger yields. OneRoof operating revenue increased 5%, with digital growth offset by a 19% decline in print revenue. NZME increased people costs through targeted investment in sales capability outside Auckland. EBITDA margin improved to 9% on a pre-IFRS 16 basis. Management said marketing was refocused in the second half toward generating higher-quality agent inquiries, which came at the cost of some short-term audience growth. A new mobile app is planned for early 2026, and NZME said it is insourcing technology development to speed product enhancements.
- Audio: Audio operating revenue increased 5% and EBITDA rose 23%, with pre-IFRS 16 EBITDA margin expanding to 15% (a 4 percentage point improvement year-over-year). Boggs said momentum strengthened in the second half as agency revenues grew while small and medium-sized businesses remained cautious for much of the year. Digital revenues accounted for 10% of total audio revenue, and podcasting represented 31% of digital audio revenue. Management said Newstalk ZB could benefit from the 2026 election cycle and that NZME is making changes to key music brands to improve engagement.
- Publishing: NZME emphasized its continued shift toward a subscription-led model. Total subscriptions grew, and digital subscribers (including digital bundled with print) rose to 86% of the subscriber base. Boggs said digital subscription volumes increased 10% and digital subscription revenue rose 3%, while print subscriber declines continued but moderated in the second half as yield improved. Publishing operating revenue fell 6%, but excluding the closed community titles, the decline was 2%. Adjusted for the closures, print advertising revenue grew 1%. Despite the revenue decline, publishing EBITDA increased 9% on disciplined cost reductions. Management also said digital advertising revenue declined year-over-year partly due to a deliberate reduction in low-margin digital performance marketing activity, which reduced revenue but improved margin quality.
Market conditions, advertising mix and digital strategy
Boggs said 2025 remained challenging for much of the year, with elevated inflation and interest rates weighing on confidence and advertising demand, particularly in the first half. He said conditions improved later in the year and momentum entering 2026 had improved despite ongoing uncertainty.
In Q&A, management said first-quarter advertising revenue was tracking for growth of more than 3% year-over-year. Boggs added that audio was seeing the most growth, though management said other areas were also improving.
NZME reiterated it reaches “around 9 out of 10 New Zealanders each month” across its platforms. Management discussed efforts to improve digital subscription yield over time, noting that bundling more products can reduce near-term average revenue per user but increase engagement and retention. Boggs said yield management is a key focus for digital, drawing a comparison to the company’s long-running approach in print.
Outlook: cautious optimism and additional savings flowing through
Looking ahead, Boggs said NZME was “cautiously optimistic” for 2026, expecting improvements in activity and sentiment to be gradual. He said cost savings implemented in 2025 would be fully realized in 2026, with an additional NZD 3 million impact expected this year because only NZD 9 million of the annualized NZD 12 million savings was recognized in 2025.
Management said it did not have any material new cost-out programs planned for 2026, but emphasized ongoing scrutiny of expenses. Boggs also said NZME had strengthened divisional accountability by setting dedicated leaders for OneRoof, publishing and audio, while maintaining shared sales teams to support cross-selling.
On OneRoof, management said it continues to see multi-dimensional growth opportunity through listing recovery, improved upgrade rates and yield growth, and reiterated expectations for improving profitability in the short term and accelerating value creation in the medium term.
About NZME (ASX:NZM)
NZME Limited, together with its subsidiaries, engages in the integrated media and entertainment business in New Zealand. It operates through Audio, Publishing, OneRoof, and Other segments. The company operates terrestrial radio stations, digital iHeartRadio, podcasts, and radio brand websites; print publications and digital news websites including nzherald.co.nz. and BusinessDesk; oneroof.co.nz website; and real estate print publications. The company was formerly known as Wilson & Horton Limited.
