Chief executive Michael Boggs says the company faced an extremely challenging operating environment last year. Photo: RNZ / Brad White
Media company NZME's full-year profit has fallen by a third on the previous year but the company's operating profit lifted 4 percent in the year to December.
The New Zealand Herald and Newstalk ZB owner reported profits of $23.4m for the 2022 financial year, compared with the previous year's $34.4m.
The statutory profits from the previous corresponding period included the $15.4m sale of GrabOne, however, and the company's underlying profit rose by 4 percent as the total revenue across NZME's audio, publishing and OneRoof arms climbed by 16 percent.
Key numbers for the 12 months ended 31 December 2022 compared with a year ago:
- Net profit $23.4m vs $34.4m
- Total Revenue $365.9m vs $365.6m
- Underlying profit $64.7m vs $66m (this excludes the impact of the GrabOne sale in 2021)
- Dividend 6 cents a share vs 5 cents
Chief executive Michael Boggs said the media company faced an extremely challenging operating environment last year but proved itself to be adaptable and flexible.
"Digital revenue's share of total advertising revenue has nearly doubled over the last three years and now represents 27 percent of total advertising revenue," he said.
"Our digital transformation efforts continue to come to fruition with record audiences across radio and digital audio platforms, as well as strong
growth in publishing and digital platforms, including OneRoof."
NZME's overall audience grew to 3.6 million people last year as the company celebrated its highest ever weekly brand audience, reaching more than 2.2 million people.
"Publishing subscriptions also increased to 209,000, including 113,000 paid digital subscriptions," Boggs said.
Boggs said the company's increased expenses reflected the acquisition of BusinessDesk and Radio Wanaka and investment in resources to deliver growth.
Print and distribution costs were similar to the year prior, with increased paper and distribution costs offset by lower volumes.
Boggs said 2023 had been off to a soft start, with a subdued real estate market, but March 2023 was tracking to deliver growth.
"Cost pressures remain across the business and we continue to be focused on substantially mitigating these through disciplined cost controls," he said.
"OneRoof has also grown its audience to 564,0006 and has 89 percent of residential for sale listings nationwide, continuing to close the gap with its closest competitor."
Boggs said the media company was two years into its three year strategy and was largely on track to achieve the targets set in 2020.
"We made significant progress and delivered strong earnings results despite business confidence falling to historic lows, supply chain challenges, labour shortages, higher interest rates and inflationary pressures," he said.
