Steven Joyce during NZME’s annual shareholders meeting held in June. Photo / Dean Purcell
NZME has reported operating earnings of $23.9 million and an after-tax loss of $400,000 for the first half of its financial year, with its board declaring an interim dividend of 3c a share.
The media company - which owns the New Zealand Herald, Newstalk ZB, property site OneRoof and a host of other radio stations and North Island newspapers - posted operating revenue of $165.7m for the six months to June 30, down 3% from the same period in 2024. Revenue was partly impacted by the closure of community newspapers in December.
The company, when announcing the result to the NZX, also revealed the members of the Herald’s new editorial advisory board.
NZME’s net loss - after 5.2m of non-recurring costs - compared with a profit of $1.9m reported in the previous corresponding period, while operating earnings before interest, tax, depreciation and amortisation (ebitda) was up almost 12% on $21.4m at the same time in 2024.
Reader revenue was 3% lower at $39.2m, with print subscriber revenue and retail outlet sales down 6% compared to the previous corresponding period. Advertising revenue was down 3% at $116.3m with core digital revenue was 2% lower.
NZME’s property website OneRoof recorded 16% growth in residential listings revenue and ebita of $1.6m, up 52%.
The company said a strategic review of OneRoof had highlighted a significant value creation opportunity and the new NZME board was focused in the short-term on growing OneRoof organically, while keeping strategic opportunities under constant review.
Audio revenue increased from $56.4m to $57.1m compared to the first half of 2024. Digital audio revenue was up 6% over the same period.
Subscriptions across NZME’s publishing division delivered a 5% year-on-year increase, with a sustained uptake in digital subscriptions.
Overall net debt at June 30 was $33.3m, some $9.2m higher than at the start of the year due to the payment of the 2024 final dividend. Free cash flow was $2.2 million - a $2.9 million improvement on the first half of 2024.
The company highlighted annualised cost reductions of $12m during the half, $2m of which was recognised in the second quarter of the year.
While economic conditions remained challenging, it said it had experienced a strong performance in advertising revenue in July 2025 – up 2% year on year (adjusting for the closure of the company’s community newspaper network) and improved operating profit year on year.
NZME in June underwent a board refresh with shareholders voting in former Finance Minister Steven Joyce to replace Barbara Chapman as chair, alongside new director Jim Grenon, who had led a highly public campaign to overthrow the board.
Entrepreneur Bowen Pan also joined as a sixth director, alongside existing board members Sussan Turner, Guy Horrocks and Carol Campbell.
During his campaign, Grenon criticised the overall financial and operational performance, while also calling for an improvement in the journalistic endeavour of the Herald.
In commentary to the financial results, Joyce told shareholders this morning that the board was focused on “improving shareholder value through short-term profitability improvements, OneRoof’s growth strategy, continuation of the company’s digital acceleration programme and improving the overall experience for NZME’s audiences”.
NZME told shareholders it is establishing an editorial advisory board made up of four members to provide advice, support and constructive challenge to the editorial masthead leadership team.
The new editorial advisory board will be chaired by Miriyana Alexander, the former Head of Premium at the Herald and previous editor of the Weekend Herald and Herald on Sunday.
Alexander, who launched premium digital subscriptions at the Herald, will be joined by three others, including lawyer Philip Crump, who was part of Grenon’s boardroom takeover attempt, political commentator and chief executive of Childfund NZ, Josi Pagani, and former chief sub-editor at The Dominion and Sunday Star Times, Brent Webling.
“The editorial advisory board does not have executive or decision-making powers but will provide independent counsel to the chief content officer and the NZME board on editorial standards, audience development and digital transformation initiatives.”
The advisory board was a key plank for Grenon, who had been vocal about improving the journalistic endeavour of the Herald during his campaign to get himself and others elected to the board of directors.
The board declared a fully imputed interim dividend for the 2025 year of 3c cents per share, payable on September 24, 2025.
“Based on current performance, without allowing for significant economic improvements, NZME expects to deliver operating ebitda for the full year in the range of $57m to $59m, the company said in its release.
“Under the Company’s dividend policy, this level of ebitda would enable a full year dividend similar to the 2024 year (3c interim plus 6c final), subject to a board decision at the time.”
NZME said it was focused on three key areas – OneRoof value realisation, improving governance and adapting to difficult market conditions.
“The difficult economic environment continues, with business confidence showing signs of recovery but with consumer confidence continuing to fluctuate. With market commentators advising economic improvement is now expected to occur in 2026, NZME is adjusting its cost base to preserve profitability, while it works on lifting market share to benefit from the eventual market upswing.”
To support OneRoof’s growth the company is establishing a OneRoof advisory board, chaired by Pan.