NZME Limited (ASX:NZM) Announces 2024 Full Year Results
Financial Performance
NZME Limited reported operating revenue of $345.9 million for the full year ended 31 December 2024, representing a 2% increase from $340.8 million in 2023. Operating EBITDA was $54.2 million, a 4% decrease from the previous year, attributed to challenging trading conditions in the second and third quarters. The company reported a statutory net loss after tax of $16.0 million, influenced by a non-cash impairment of intangible assets.
Strategic Initiatives
NZME continues to drive growth through its digital transformation strategy. OneRoof, the company’s real estate platform, demonstrated significant performance with digital revenue increasing by 51%, contributing 61% to OneRoof’s total revenue. Additionally, the company launched three new strategic areas of focus: accelerating OneRoof’s growth potential, enhancing governance with additional board specialists, and leading economic recovery initiatives in New Zealand.
Capital Management
Despite lower profitability, NZME reported a strong capital position, enabling the declaration of a fully imputed final dividend of 6.0 cents per share and an interim dividend of 3.0 cents per share. Net debt stood at $24.1 million, within the target leverage ratio range. The Board anticipates lower capital investment in 2025, while remaining open to opportunities to enhance earnings and shareholder value.
Outlook
NZME expects advertising revenue growth of 4% in the first quarter of 2025 and anticipates continued digital revenue growth driven by OneRoof. Subject to improvements in market advertising demand, the company aims to deliver improved operating results for 2025.
Executive Comments
CEO Michael Boggs stated, “Our integrated approach leverages both digital and traditional media strengths, enabling us to provide diverse offerings to our audiences. Despite industry challenges, our strong digital strategy has underpinned our performance and profitability.” Chairman Barbara Chapman added, “NZME’s robust digital strategy ensures we remain at the forefront of innovation, generating sustainable growth and delivering exceptional shareholder value.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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