Wednesday 15th November 2023
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AUCKLAND, 15 November 2023: NZME Limited (NZX: NZM , ASX: NZM) (“NZME”) has today released its revised three-year strategy, with digital transformation at its core across its three divisions: Audio, Publishing and OneRoof. The strategy has been released ahead of NZME’s annual Investor Day virtual event at 10am today.
Michael Boggs, NZME CEO, says NZME’s central objective is to relentlessly pursue a digital led strategy across its three key platforms. This work is being delivered by NZME’s dedicated team of more than 1200 people.
“Digital revenues have shown strong growth over recent years, reflecting the strength of NZME’s strategy and platforms. We remain committed to growing digital revenues - it is core to the future improved profitability and sustainability of our business, and to delivering value for our shareholders,” he says.
Boggs says across NZME, digital revenue is forecast to be 29 percent of NZME’s total revenue in 2023, more than doubling as a percentage of total revenue since 2019.
“We are pleased that across the business we are growing the digital mix of revenue. In digital audio we have more than 70 percent market share* versus our key audio competitor, and we believe there is potential for rapid growth.
“Digital revenues within publishing advertising and reader revenue have now significantly changed the mix of print versus digital revenues. NZME’s publishing division is now organised into separate digital and print units – a true digital first model. Given this, a profitable digital publishing business is now visible from an operational and profitability perspective and it is now funding the leading journalism produced by NZME.
“Finally, a transformational change is happening at OneRoof due to the growth in our digital property platform, which is setting that division up for future success,” says Boggs.
NZME also released its revised three-year strategic priorities across its Audio, Publishing and OneRoof divisions.
• To be Number One in Audio
• To be New Zealand’s leading news destination
• To be Your essential property platform
Number One in Audio
NZME’s Audio business includes its many radio brands, digital audio platform iHeartRadio, and its high-performing podcast network.
The newly released strategic priority to be ‘Number One in Audio’ includes a strong focus on three key pillars:
• Create the most listened to and loved content
• Deliver customer solutions to grow revenue share
• Grow podcast engagement and monetisation
New Zealand’s leading news destination
NZME’s Publishing business covers its digital platforms including NZ Herald Premium, BusinessDesk and VIVA Premium, as well as its national, regional and community print products.
The newly released strategic priority to be ‘New Zealand’s leading news destination’ includes a strong focus on three key pillars:
• Scalable digital audience and advertising news platform
• Expert journalism that grows subscriber lifetime value
• High quality and efficient print business
Your essential property platform
NZME’s OneRoof business covers its online platform OneRoof.co.nz which houses property listings, valuations, as well as property and real estate industry news.
Its newly released strategic priority is to be ‘Your essential property platform’, and includes a strong focus on three key pillars:
• Superior listings experience and performance
• Grow listings revenue
• Accelerate non-listings portfolio
Boggs says he is proud to reveal a digital-led strategy that is focused on delivering superior returns.
“We believe this strategy sets us apart from our competitors and we expect it to deliver returns for shareholders. Our Audio business has significant opportunities that are already improving our profitability, in Publishing we are currently investing heavily in our digital publishing platform and a new business of journalism operating model, and OneRoof is at a tipping point and we are confident that significant shareholder value can be created from the very large profit pool that it operates in,” he says.
The full NZME Investor Day 2023 presentation is attached to this announcement.
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