NZME Reports Profit Turnaround as Advertising Revenue Stabilizes

Media company NZME has announced a profit for the year ending December 2025, reversing the previous year’s net loss thanks to a slight increase in operating revenue and stabilizing advertising income. The company reported a post-tax profit of $13.1 million, compared to a loss of $16 million the prior year. Although overall advertising revenue declined to $244.7 million from $248.2 million in 2024, the results indicate a cautious recovery within the sector.

Operating revenue saw a modest increase of 1%, reaching $341.3 million when adjusted for the closure of community publications, which had previously contributed $6.9 million to the total. The results were bolstered by effective cost control measures and improved performance in the company’s Audio division. This segment recorded a 5% rise in operating revenue to $122.2 million, attributed to a recovering audio advertising market.

Performance Across Divisions

Despite ongoing challenges in the publishing sector, where print subscriptions continued to decline, NZME reported a 3% increase in digital subscriptions. The division experienced an overall advertising decline of 10%, but print circulation remains the largest revenue source, followed closely by print advertising. In response, NZME is focusing on enhancing its specialized print-only sales team to better navigate these trends.

The OneRoof division, NZME’s digital real estate platform, showed resilience with a 19% increase in residential listings revenue, even as the broader real estate market faced difficulties. Overall, the division’s operating revenue increased by 5%, highlighting its capacity to adapt to changing market conditions.

Chief Executive Michael Boggs attributed the positive results to the dedication of the NZME team, noting improvements in consumer and business confidence as contributing factors. He stated, “We’ve remained focused on our digital-first strategy, continuing to innovate and adapt to changing audience and client needs. We’ve reduced our costs and simplified our structure to allow us to operate at pace.”

Shareholder Dynamics and Future Strategies

The company’s largest shareholders are Spheria Asset Management and director Jim Grenon, each holding over 18% of NZME. Recently, Grenon gained attention for his financial backing of a defamation case involving controversial evangelist Julian Batchelor, who is seeking $50,000 in damages and an apology related to media coverage of his “stop co-governance” campaign.

As NZME looks ahead, the company remains committed to navigating the evolving media landscape, enhancing its digital offerings, and addressing the distinct challenges faced by each of its divisions. The stabilization in advertising revenue and the strategic focus on digital innovation may position NZME for future growth in an increasingly competitive market.