AUCKLAND, Today: New Zealand Media and Entertainment has announced its financial results for the half year ended 30 June 2020, reporting 5% growth in Operating Ebitda* to $28.9 million.
Releasing NZME’s interim report today, ceo Michael Boggs paid tribute to NZME’s people.
“They have ensured NZME withstands the extraordinary challenges Covid-19 continues to pose,” he said. “They have also remained absolutely committed to NZME’s purpose of keeping Kiwis in the know by delivering leading news and information that all New Zealanders can trust.”
NZME chairman Barbara Chapman also thanked New Zealand businesses for their ongoing support.
“Owning, running and leading a business has never been tougher,” she said. “That so many Kiwi businesses have continued to see the value in staying connected to their customers by continuing to invest in advertising with us, is an absolute testimony to the resilience and commitment of our commercial partners.”
Boggs said NZME’s half-year results were also driven by the company’s strong audience performance.
“More than 3.2 million New Zealanders rely on us to keep them informed and entertained. The importance of this responsibility continues to be highlighted during the ongoing unprecedented events of 2020.
“More than 3.2 million New Zealanders rely on us to keep them informed and entertained.”
“As advertising and retail circulation revenues came under significant pressure in the second quarter, NZME gained market share across key revenue channels within radio, print and digital advertising.”
Today NZME reported total operating revenue of $157.8 million for the half year, down 13% on the comparable period, largely due to the impacts of Covid-19.
Effective capital management resulted in a significant $19.5 million reduction in Net Debt over the half year to $55.2 million, representing a net debt to operating Ebitda ratio of 1.0 times.
NZME’s operating Ebitda includes $8.6 million the business received from the government as a wage subsidy.
The wage subsidy ‘helped’
“The government wage subsidy also helped us retain roles that are now supporting our recovery,” said Boggs.
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NZ Herald Premium digital subscriptions continue to grow and now total more than 82,000, including 43,000 paid digital subscribers.
Growth in NZME’s radio revenue continued until Covid-19 began to impact advertising revenues towards the end of the first quarter.
Talk radio major market audience share grew 0.8% year-on-year to 14.8% due to the continued success of Newstalk ZB7. NZME has recently made some exciting content and talent enhancements to increase music radio listener market share.
- View all results here
- *Net income with interest, taxes, depreciation, and amortisation added back
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