Media Insider: NZME posts $62.3m operating ebitda, $13.1m net profit after tax
NZME owns the NZ Herald, property website OneRoof and a suite of radio stations including Newstalk ZB, whose hosts include Ryan Bridge, Mike Hosking and Heather du Plessis-Allan. Photo montage / Oliver Rusden
NZ Herald publisher NZME has today posted operating ebitda of $62.3 million, up 15% on the previous year, and a net profit after tax of $13.1m, turning around the previous year’s $16m loss.
The result for the 12 months to December 31 has been partially driven by a “radio resurgence”, the company told investors today, as well as operating ebitda growth in digital publishing and property portal OneRoof.
NZME chief executive Michael Boggs described the result as a “strong performance” and, in a market outlook, he said the company was “cautiously optimistic” heading into 2026, with advertising revenues on track for 3% growth, year-on-year, in the first quarter.
The company reported an operating net profit after tax of $17.7m, compared with $12.1m the previous year. Operating revenue for the year was $345.1m - down 1% from the year prior, NZME said, because of the closure of its community publications in December 2024. Normalised operating revenue growth was 1%.
The company’s operating expenses were 4% lower than the year prior, “in part reflecting the savings initiatives implemented early in 2025″.
NZME - which also owns property business OneRoof and a suite of radio stations including Newstalk ZB and The Hits - said the financial results were also “helped by easing inflation and improving business and consumer confidence”.
In his market outlook, Boggs said: “NZME is well-positioned to benefit from an economic upturn, and we’re focused on delivering top-line revenue growth in 2026.
“We’re seeing encouraging signs of recovery with advertising revenues for the first quarter on track to deliver an estimated 3% growth year on year.
“It’s pleasing to see activity levels and market sentiment continuing to improve, and we’re anticipating a gradual recovery as inflationary pressures and global economic uncertainty linger.”
The company had completed cost savings in 2025 that would deliver annualised cost savings of $12m.
“This will result in a further improvement in costs of $3m in 2026, while we continue to proactively manage costs,” said Boggs.
NZME reported that its net debt had been reduced by $8.6m to $15.5m, which was below the company’s target leverage ratio range.
A final dividend of 6 cents per share had been declared, bringing total dividends to 9 cents per share for the year.
Division-by-division performance
NZME reported a solid performance for OneRoof with continued digital listings revenue growth – up 18% from the prior year, helping drive a 32% improvement in ebitda.
The audio division’s profitability was up 23%, driven by overall revenue growth of 5%, including digital audio revenue growth of 10%.
And the publishing division had growth of 3% in digital subscription revenue. The division also delivered improved profitability, with 31% growth in digital publishing operating ebitda.
NZME said the number of digital subscribers grew 10% to 166,000 and total subs grew 3% year-on-year from 236,000 to 243,000.
Boggs said OneRoof remained a priority focus “by accelerating its expansion across the country while improving audience experience and marketing performance across all our platforms”.
“This is expected to deliver improved profitability in the short term and significant value creation in the medium term.”
The result comes after a turbulent period earlier in 2025, as businessman and shareholder Jim Grenon sought a cleanout of the company’s board, and improvement in the company’s financial and operating performance, including its editorial endeavours.
Peace eventually broke out at board level, with NZME chair Barbara Chapman standing down at the company’s annual shareholders’ meeting in June.
She was replaced by businessman and former National Government minister Steven Joyce as chair, while Grenon also joined the board, along with tech entrepreneur Bowen Pan.
Grenon now owns just under 18.5% of NZME, making him the company’s second largest shareholder, just behind Australian investment firm Spheria Asset Management, which holds 19%.
Joyce said the improved profit result was “pleasing” in a challenging economic climate.
“We have entered 2026 with a strong balance sheet, diversified revenue streams and strong market positions across audio, publishing and OneRoof, providing a solid foundation for future growth,” he said.
“The renewed momentum and focus we have built through 2025 positions us strongly for 2026 and beyond.”
Today’s result comes after NZME announced in October it was upgrading its operating ebitda guidance to between $59m and $62m - up from the previous estimated range of $57m-$59m.
Last year, NZME posted operating ebitda of $54.2m and a post-tax loss of $16m after a non-cash impairment of intangible assets. That was off the back of 2% growth in operating revenue, from $340.8m to $345.9m.
New director
Last week, NZME announced a new independent director, Kate Parsons.
Parsons is also a director of Mainfreight, Entrada Travel Group, Freedom Lifestyle Villages and Grey Street Investments Ltd (Tax Traders).
Parsons, a chartered accountant, will transition into the role of chair of NZME’s audit and risk committee. The current chair, Carol Campbell, is due to retire from the NZME board this year.
“I am delighted to welcome Kate to the NZME board,” said Joyce.
“Her financial expertise and experience with technology and high-growth companies will be a real asset for NZME as we continue to focus on our digital strategy, drive revenue growth across our audio, publishing and OneRoof divisions, and obtain cost efficiencies across the business.”
NZME shares opened at $1.13 on Tuesday.
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.