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Are we starting to see the turnaround for commercial media companies? Two days after TVNZ said it expected to be back in black this year, MediaWorks reports ‘positive momentum’.
Radio and outdoor media firm MediaWorks has posted an after-tax loss of $16.2 million for 2024 but has highlighted growth inrevenue and Ebitda.
The company, which owns outdoor advertising assets and music radio stations including The Breeze, More FM, The Rock and The Edge, says it is making “good progress” in securing new banking facilities and expects to have these confirmed by the end of June.
The company today announced revenue of $213m (including total advertising revenue of $202m) for its full financial year to December 31, 2024 – up 4% on FY23 – and Ebitda (earnings before interest, tax, depreciation and amortisation) of $38.9m, an increase of $4.4m (13%) year-on-year.
Radio and digital advertising contributed $150.5 million and outdoor advertising contributed $51.5m to the total advertising revenue of $202m.
MediaWorks currently has the contract to run bus advertising for Auckland Transport.
MediaWorks describes the results as “positive momentum” and in an outlook, it says it has made a strong start to 2025, “with Q1 revenue and Ebitda ahead of budget and solid year-on-year growth”.
It said its agency advertising sales were tracking well, “with strong growth in radio and outdoor”.
“Forward-looking sales pacing indicators suggest growth momentum has continued through Q2 across all platforms. The business remains focused on managing costs and executing its strategy with discipline.”
MediaWorks’ results and outlook follow comments by TVNZ this week that it expects to be back in the black for its current financial year, which ends June 30, following a loss in the previous 12 months.
Financial notes
Notes with the MediaWorks accounts state: “As at 31 December 2024, the group had net assets of $26.3m (2023: $32.8m), negative working capital of $19.8m (2023: negative $115.7m) and cash balances of $8.4m (2023: $12.3m).
“The group also reports positive operating cash flows of $36.3m (2023: $25.6m).
“A contributor to the negative working capital position is the maturing of existing debt facilities. Further, borrowings classified as non-current mature on January 1, 2026.
“The directors are in the final stages of refinancing the group’s debt facilities. This is expected to complete in June 2025, and the directors consider these facilities will provide sufficient funding for the working capital and future capital expenditure needs of the group.
“With the expected facilities, forecasts approved by the board of directors show sufficient funds and covenant headroom for a period of no less than 12 months of the date of signing these financial statements.
“The directors view the group will operate and continue as a going concern. Accordingly, these financial statements have been prepared on a going concern basis.”
MediaWorks chief financial officer Mike Asbridge said the company had made “good progress” in securing new banking facilities.
“This will further strengthen the balance sheet, and help ensure the business can continue investing in growth both this year and in the years to come.”
He said the company was tracking ahead of expectations in early FY25 “and well ahead of prior year, driven by disciplined execution, margin improvement and targeted investment”.
MediaWorks chairman Barclay Nettlefold and chief executive Wendy Palmer.
MediaWorks chief executive Wendy Palmer said: “We’re pleased with how we exited FY24 – we’ve got momentum, a clear focus, and the right people in place to deliver it.”
She said her team had done an “outstanding job” in a challenging market.
“There’s still work to do, but the investments we’ve made in talent, technology and content are clearly paying off.”
MediaWorks chairman Barclay Nettlefold said: “FY24 was a year of consolidation and confidence-building for MediaWorks. The business has made clear gains in revenue, profitability and leadership capability, while continuing to deliver on its strategic priorities.
“We’ve simplified and refocused the company around audiences and commercial performance and that is clearly showing in the results.”
“It reflects a long-term commitment to the New Zealand market and to the strategic direction the executive team is pursuing.”
The company highlighted its radio audience share and digital revenue growth as highlights.
“Digital audio continues to grow as audiences blend live radio with on-demand listening. Rova revenue grew 49%, well ahead of the market’s 34% increase.”
The company said outdoor revenues were up 12% year-on-year versus the market at 9%, “led by strong growth in the agency channel and continued strategic investment in expanding MediaWorks’ network of digital out-of-home billboards”.
Programmatic digital out-of-home (pDOOH) saw year-on-year gains at 83%, outgrowing the market at 23%.
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.
