Wednesday 24th February 2021
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NZME Limited has today announced its financial results for the full year ended 31 December 2020, reporting Statutory Net Profit After Tax (“NPAT”) of $14.2 million and 3% growth in Operating Earnings Before Interest Tax Depreciation and Amortisation (“Operating EBITDA”) to $67.3 million.
“Our team at NZME continued to focus on delivering for the 3.3 million Kiwis who engage with our platforms. Our commercial partners have also shown extraordinary resilience and together, we have delivered a result we can all be very proud of. This is especially so given the immense and ongoing challenges we have faced since early last year,” said NZME CEO Michael Boggs.
In its full year 2020 announcement NZME reports Operating revenue of $331.2 million, down 11% on the same period in 2019 “reflecting the significant impacts of Covid-19 on advertising”.
“The initial shock of Covid-19 on NZME saw advertising revenues across our business fall by close to 50%. But Kiwi business owners understand the value of staying engaged with their audiences and as New Zealand moved through the crisis phase of the pandemic, advertising spend steadily returned. It’s very pleasing that we ended 2020 with advertising revenue in some areas approaching levels similar to 2019,” said Boggs.
Commenting on NZME’s navigation of the Covid-19 challenges to deliver earnings growth during 2020, Chairman Barbara Chapman, credited NZME’s people and its leadership.
“Our people stayed steadfastly committed to our purpose of keeping Kiwis in the know. NZME’s journalism and entertainment excelled across all of our print, digital and radio platforms. Our teams of entertainers did what they do best, keeping Kiwis connected and their spirits up. “The NZME executive swiftly led initiatives ensuring NZME continued to deliver on our responsibilities as an Essential Service while prioritising the health and safety of our people.
“The reshaping of our business in 2020 means NZME remains in a good position as the ongoing impacts of Covid-19 are felt into 2021 and possibly beyond. As we have stated previously, the government wage subsidy supported the production of quality journalism and broadcasting during an extremely difficult period and helped NZME retain roles that are now supporting the delivery of our strategy,” said Chapman.
NZME has reported further momentum in its key strategic priorities with year-on-year growth in radio revenue market share and digital listening via its iHeartRadio platform. The NZ Herald Premium news subscription service grew to 102,000 subscribers while real estate platform OneRoof continues to grow, now boasting more than 89% of New Zealand’s residential for-sale real estate listings.
During 2020 NZME maintained its focus on effective capital management and this resulted in a significant reduction in net debt to $33.8 million at 31 December 2020 down from $74.7 million as at 31 December 2019.
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