NZME’s EBITDA Climbs 15% to $62.3m Despite Revenue Dip

A Strong Financial Turnaround

New Zealand Media and Entertainment (NZME) has delivered a robust financial performance for the full year ended 31 December 2025, reporting a statutory net profit after tax of NZD 13.1 million. This marks a remarkable recovery from the prior year’s loss of NZD 16.0 million, which was heavily impacted by a non-cash impairment charge.

Operating EBITDA rose 15% to NZD 62.3 million, driven by growth in digital revenue streams and effective cost management. Despite a slight 1% decline in operating revenue to NZD 345.1 million, this figure reflects the strategic closure of unprofitable community publications in late 2024. On a normalized basis, revenue actually grew by 1%, underscoring the resilience of NZME’s core businesses.

Digital Growth Fuels Divisional Success

NZME’s three main divisions; Audio, Publishing, and OneRoof; each contributed to the improved earnings. The Audio division saw a 5% increase in revenue, with digital audio revenue growing 10%, bolstered by podcast monetisation and streaming platforms. Publishing experienced a 3% rise in digital subscription revenue, with total subscriptions increasing to 243,000, offsetting declines in print circulation. OneRoof, the company’s property platform, delivered a 19% increase in digital listings revenue, driving a 32% improvement in divisional EBITDA.

These digital advances are complemented by ongoing investments in product innovation, including the launch of a new Herald NOW live-streaming news service and an upgraded iHeartRadio app with enhanced features. OneRoof is also set to release a new mobile app in early 2026, aiming to accelerate audience growth and improve user experience.

Cost Discipline and Capital Management

Operating expenses decreased by 4% to NZD 282.8 million, reflecting successful savings initiatives implemented early in 2025. These initiatives are expected to deliver annualised cost savings of NZD 12 million, with further improvements anticipated in 2026. NZME’s net debt fell by NZD 8.6 million to NZD 15.5 million, bringing the leverage ratio below the company’s target range and reinforcing a strong balance sheet position.

The Board declared a final dividend of 6.0 cents per share, maintaining a total dividend of 9.0 cents for the year, consistent with 2024. This payout represents 67% of free cash flow, aligning with NZME’s dividend policy and signalling confidence in the company’s financial health and future prospects.

Governance, Leadership, and Outlook

2025 also saw significant governance renewal with the appointment of new Board members bringing fresh expertise, alongside leadership restructuring to enhance divisional accountability. The company’s digital-first strategy remains central, with a focus on innovation, audience engagement, and advertiser value.

Looking ahead, NZME is cautiously optimistic for 2026. Advertising revenues for the first quarter are on track for 3% growth year-on-year, supported by improving market sentiment. The company plans to continue proactive cost management while accelerating OneRoof’s expansion and digital product development.