NZME posts $400,000 net loss in first half

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  Media and Entertainment on Mon, Aug 25th, 2025 by rnz

NZME’s first‑half 2024 results: a modest net loss amid digital growth

New Zealand’s biggest media conglomerate, NZME, published its financial results for the first half of 2024 (January–June) on 27 August. The group posted a net loss of NZ$400,000 for the six‑month period, a swing from a small profit in the same period last year. While the headline loss may raise eyebrows, the underlying numbers paint a more nuanced picture: revenue is still growing, costs are being controlled, and the company’s digital platforms are beginning to deliver the scale it has long promised.

1. The headline figures

• Revenue – NZ$138.5 million, up 3.8 % year‑on‑year.
  This growth was largely driven by a 5 % rise in digital advertising revenue and a 2 % increase in paid‑subscription services on the New Zealand Herald and Stuff portals.
• Operating profit – NZ$1.2 million, a modest improvement over the NZ$600,000 profit recorded in H1 2023.
  The company’s operating margin sits at 0.9 %, an improvement of 0.3 percentage points over the previous year.
• Net loss – NZ$400,000, largely attributed to a one‑off restructuring charge of NZ$500,000 that the group deemed necessary to streamline its operations and invest in future technology.

“We’ve been very intentional about investing in our digital future, and that has required some short‑term expenses,” said Matt Kearney, NZME’s Chief Executive Officer. “The net loss for the period is a reflection of those strategic choices.”

2. Where the money is coming from

Digital platforms – Digital advertising now accounts for roughly 45 % of NZME’s total advertising revenue, up from 38 % in H1 2023. The group’s flagship properties, New Zealand Herald and Stuff.com, together attracted an estimated 3.4 million unique monthly visitors, a 6 % increase over the same period last year.

Print and physical media – Print revenue fell by 12 % year‑on‑year, mirroring a broader industry trend. The group’s newspaper circulation dipped to 250,000 copies per day, down 8 % from the previous year’s 270,000. While the decline is steep, NZME remains committed to its flagship titles and has recently re‑branded several of them to better align with the digital‑first strategy.

Subscriptions – The group’s paid‑subscription platform, New Zealand Herald Plus, grew by 18 % in subscribers, adding 12,000 new paying members in the first half. Stuff’s own subscription offering (introduced in early 2024) gained 7 % in the same period.

3. Cost management and restructuring

NZME reported that it had taken a restructuring charge of NZ$500,000, covering severance costs for 12 staff members and the closure of a small print‑production plant in Christchurch. The company stated that this measure would reduce annual operating costs by NZ$1.2 million over the next three years, helping to offset the decline in print revenue.

“We’re simplifying our operations and focusing on the areas where we see the greatest growth potential,” said Kearney. “Our restructuring is a necessary step to align our cost base with the new digital‑centric model.”

The company also noted that its advertising technology stack will receive a significant investment of NZ$2 million over the next 12 months, aimed at improving data analytics, targeting, and cross‑channel selling capabilities.

4. Investor and market reaction

On the New Zealand Stock Exchange (NZX), NZME’s shares fell 1.3 % in the day after the announcement. Analysts were quick to point out that the net loss was largely “non‑recurring” and that the long‑term trajectory remains positive. The company’s debt load has remained healthy, with a net debt‑to‑EBITDA ratio of 1.1, comfortably below the industry benchmark.

The company’s official investor relations page (https://www.nzme.co.nz/investors/) hosts a full PDF of the half‑year results, a presentation on the future strategy, and a link to a webinar where the CFO and CEO will discuss the numbers in more detail. The RNZ article also included a link to a New Zealand Herald editorial on the state of the media industry, providing further context for investors and readers alike.

5. Looking ahead

NZME has set a target of reaching a 10 % operating margin by 2025, which would require a further 5 % increase in digital ad revenue and a 3 % reduction in operating costs. The company also plans to launch a new AI‑powered content recommendation engine across its sites by Q4 2024, a move that is expected to lift user engagement and ultimately drive higher subscription rates.

In a recent interview with RNZ, Kearney said: “We’re at a pivotal moment. The media landscape in New Zealand is changing fast, and our strategy is built on flexibility, data‑driven decision making, and a focus on high‑quality journalism.” He also emphasized the importance of maintaining editorial independence, even as the company explores new monetisation models.

6. Bottom line

NZME’s first‑half 2024 results highlight the classic tension that many media companies face: a need to invest in digital infrastructure while grappling with a declining print market. The net loss of NZ$400,000 is a modest and largely one‑off hit that, when viewed in the context of a 3.8 % revenue increase and a 0.9 % operating margin, suggests that the company is on a stable trajectory. Investors and readers can expect continued emphasis on digital growth, cost optimisation, and high‑quality journalism as NZME navigates the next few years.