AUCKLAND, Today: NZME has today announced its financial results for the full year ended 31 December 2020, reporting Statutory Net Profit After Tax (NPAT) of $14.2 million and 3% growth in Operating Earnings Before Interest Tax Depreciation and Amortisation (Operating EBITDA) to $67.3 million.
NZME ceo Michael Boggs said: “Our commercial partners have shown extraordinary resilience, and together we have delivered a result we can all be very proud of. This is especially so given the immense and ongoing challenges we have faced since early last year.
“In its full year 2020 announcement NZME reports Operating revenue of $331.2 million, down 11% on the same period in 2019 reflecting the significant impacts of Covid-19 on advertising.
“The initial shock of Covid-19 on NZME saw advertising revenues across our business fall by close to 50%. But Kiwi business owners understand the value of staying engaged with their audiences and as New Zealand moved through the crisis phase of the pandemic, advertising spend steadily returned.
“It’s very pleasing that we ended 2020 with advertising revenue in some areas approaching levels similar to 2019.”
“It’s very pleasing that we ended 2020 with advertising revenue in some areas approaching levels similar to 2019.”
2020 Full Year Results at a glance:
- 2020 Full Year Statutory NPAT of $14.2 million, compared to a Statutory Net Loss After Tax of $165.2 million in 2019, impacted by $175.0 million impairment of intangible assets.
- NZME reports 3% growth in 2020 Full Year Operating EBITDA to $67.3 million.
- 2020 Full Year Operating NPAT1 of $22.0 million and Operating Earnings per Share (EPS)1 of 11.1 cents, an increase of 2.3 cents per share compared to 2019.
- NZME deemed an Essential Service during New Zealand’s Covid-19 lockdown; keeping Kiwis in the know.
- Accessed $8.6 million (net) in Government Covid-19 Wage Subsidy to retain roles that supported NZME to meet its obligations as an Essential Service.
- Significant audience maintained at 3.3 million, representing 83% of the New Zealand population and nearly 2.6 million digital users per month2.
- More than 102,000 NZ Herald Premium digital subscribers, including more than 53,000 paid digital-only subscribers generating revenue of $6.6 million in 2020.
- OneRoof held the #1 position in residential for-sale real estate listings in Auckland for most of 2020, with more than 89% of listings in New Zealand at 31 December 2020 and contributed $4.3 million of digital classifieds revenue in the year.
- Growth in revenue market share achieved across all key channels in 2020; to 40.4% in radio advertising, 47.1% in print advertising[5] and 24.3% in digital display[6].
- Total reader revenue growth of 2% year-on-year as decline in retail outlet sales offset by growth in print and digital subscriber revenues.
- Radio revenue in growth year-on-year prior to the impact of Covid-19 and returned to 2019 levels during Q4 2020.
- Cost initiatives and reduced volumes resulted in a significant decrease in Operating expenses of 14% year-on-year.
- Net Debt reduced by $40.9 million to $33.8 million and leverage ratio reduced to 0.6 times Operating EBITDA1.
- NZME has reported further momentum in its key strategic priorities with year on year growth in radio revenue market share4 and digital listening via its iHeartRadio platform.
- The NZ Herald Premium news subscription service grew to 102,000 subscribers while real estate platform OneRoof continues to grow, now boasting more than 89% of New Zealand’s residential for-sale real estate listings3.
“Our teams of entertainers did what they do best, keeping Kiwis connected and their spirits up.”
Commenting on NZME’s navigation of the Covid-19 challenges to deliver earnings growth during 2020, chairman Barbara Chapman credited NZME’s people and its leadership.
“They stayed steadfastly committed to our purpose of keeping Kiwis in the know. NZME’s journalism and entertainment excelled across all of our print, digital and radio platforms. Our teams of entertainers did what they do best, keeping Kiwis connected and their spirits up.
“The NZME executive swiftly led initiatives ensuring NZME continued to deliver on our responsibilities as an Essential Service while prioritising the health and safety of our people.
“The reshaping of our business in 2020 means NZME remains in a good position as the on-going impacts of Covid-19 are felt into 2021 and possibly beyond. As we have stated previously, the government wage subsidy supported the production of quality journalism and broadcasting during an extremely difficult period and helped NZME retain roles that are now supporting the delivery of our strategy.”
About NZME
NZME is a leading New Zealand media and entertainment business that reaches 3.3 million Kiwis. Whether reading, listening, or watching, our audience gets the content they want – where and when they want it. NZME offers advertisers a unique opportunity to access its growing audience via a fully integrated multi-platform presence. NZME is listed on the NZX Main Board (code NZM) with a foreign exempt listing on the ASX (code NZM).
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