NZME’s 2021 financial results buoyed by digital growth

NZME has announced its financial results for the full year ended December 31, 2021, reporting five percent Operating Revenue growth to $ 349.2 million, Statutory Net Profit After Tax of $ 34.4 million and Operating Earnings Before Interest Tax Depreciation and Amortisation of $ 66.0 million. Operating Earnings Per Share increased to 11.9 cents per share, compared to 11.3 cents per share in 2020.

NZME Chief Executive Michael Boggs says he’s proud of what the business achieved in 2021, despite the challenges of COVID-19.

“As I reflect on 2021, I am very proud of what we achieved, especially in what has been a difficult and uncertain trading environment with the reintroduction of Covid-19 restrictions across the country. We grew our audience reach to 3.5 million2 across our platforms and achieved strong financial results, growing revenue across NZME’s three strategic pillars: Audio, Publishing and OneRoof.

“I am also incredibly proud of the important role NZME played in keeping Kiwis in the know with the launch of The 90% Project and the business-wide #RollUpYourSleevesNZ campaign. By 16 December, 90% of the eligible population had received two doses of the vaccine, helping Kiwis stay safe against Covid-19 and go about their daily lives. We recognise the responsibility that comes with acting as a voice of record for New Zealand and we continued to use our platforms and reach to make a positive impact to our community in 2021,” he says.

NZME demonstrated progress in its digital transformation, reporting a 37 percent increase in total digital revenue compared to the 2020 financial year.

“NZME’s ability to generate advertising revenue has remained resilient against Covid-19 related headwinds in 2021, growing 13 percent compared to 2020 despite nationwide Covid-19 restrictions in the second half of 2021. Our commitment to putting customers first, especially through these challenging times resulted in a strong finish to the year with November and December 2021 advertising revenue exceeding 2019 levels as customers utilised NZME’s platforms to build their own brands,” says Boggs.

NZME Chairman, Barbara Chapman says despite 2021 being another disrupted and challenging year due to Covid-19, NZME’s guiding principles and strategic priorities remained relevant and robust.

“NZME’s guiding principles provided the foundation for the business to remain focused and further progress our strategic priorities. We continued to execute strongly in our digital media strategy, guided by the principle of Digital Acceleration. We are extremely pleased to have achieved strong digital revenue growth across each of the three strategic pillars and will continue to maximise the opportunities we have across all digital platforms,” she says.

NZME’s digital audio platform, iHeartRadio, further cemented its position of being New Zealand’s leading podcaster and increased digital listening hours by 25 percent in 20219.

The NZ Herald Premium news subscription service grew to 140,000 subscribers, including digitalonly subscribers increasing to 83,000, up 54 percent year-on-year.

OneRoof’s penetration of New Zealand’s residential for-sale real estate listings increased to 91 percent and revenue generating listing upgrades grew to 23.5 percent, compared to 17.6 percent in 2020.

Advertising Market revenue share increased in 202111 across NZME’s key channels: Radio, Print and Digital Display.

NZME executed on its capital management goals in 2021, including fully paying down debt to end the year in a net cash position of $ 13.5 million, an improvement of $ 47.4 million throughout 2021.

“The reduction of net debt provided the Board with options on how best to deliver value to our shareholders and we are pleased to have previously announced an on-market share buyback programme expected to commence in March 2022 and a fully imputed and fully franked final dividend of 5.0 cents per share.

“In 2022, the Board continues to focus on delivering shareholder value through dividends and the on-market share buyback, but we also remain in a strong position to make investments that align with our strategic priorities and fuel NZME for growth,” says Chapman.

In 2021, the business continued to deliver on its 2023 strategy commitments, with a focus on steering NZME back to 2019 revenue levels and beyond.

The Audio team developed exciting new content to engage audiences, including the launch of a youth-focused digital audio network, KICK, and the appointment of Mike Lane to lead The Alternative Commentary Collective (“The ACC”) with a mandate to cement the The ACC as New Zealand’s leading sports entertainment brand.

NZME’s flagship news website nzherald.co.nz grew monthly digital users with the introduction of new local sites, personalised homepage content and improved search functionalities. Digital subscriber growth was supported by enhancing the registration flows and engagement touchpoints, including subscriber commenting. The addition of BusinessDesk to the group in 2022 aligns with NZME’s strategic priorities and reinforces our commitment to quality journalism.

The OneRoof brand continued to grow strongly, providing the most accurate valuations to its users and driving audience engagement.

Two new senior executive appointments were made in late 2021 with Jason Winstanley appointed as Chief Radio Officer and Paul Hancox as Chief Commercial Officer. Both were internal appointments, exhibiting the talent of NZME’s people and in-depth industry knowledge.

“Jason is one of New Zealand’s most experienced audio executives with extensive experience across music and talk radio. NZME is lucky to have had Jason in the business for over 20 years and help build and lead successful radio brands. We are very excited to have Jason join the executive team and look forward to seeing him grow the Audio strategic pillar.

“It was clear that Paul was the best person to lead the Commercial Team into the next phase of growth, having achieved many successful outcomes as Chief Revenue Officer. With over 25 years of experience in the media industry, we are confident that Paul will continue to add immense value as Chief Commercial Officer,” says Boggs.

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