Nzme Limited · NZX:NZM
Nzme — H1 2024 Earnings Presentation
43 slides from Nzme's earnings presentation, 2024
Slide 1: 1
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Slide 2: Agenda
Results summary 3 Key highlights 4 Trading environment 5 Strategic priorities and market performance 6 2024 half year financial results 9 Divisional performance 16 Outlook 35 Q&A 37 Supplementary information 38 2
Slide 3: Non-GAAP measures note
3 1. Operating results presented are non-GAAP measures that include the impact of NZ IFRS 16, however, exclude exceptional items to allow for a like for like comparison between 2023 and 2024 financial years. Please refer to pages 40-41 of this results presentation for a detailed reconciliation.
Slide 4: Key highlights
1. Adswizz AudioMetrix July 2023 – June 2024. 12 months to June 2024 compared to the same period last year. 4
Slide 5: Trading environment
40.0 25% 30.0 20% 20.0 15% 10% 10.0 5% - - (5%) (10.0) (10%) (20.0) (15%) (20%) (30.0) Jan-24 Nov-23 Feb-24 Aug-23 Dec-23 Mar-24 May-24 Jul-23 Jun-24 Jun-23 Sep-23 Oct-23 Apr-24 (25%) Jan-24 Nov-23 Feb-24 Aug-23 Dec-23 Mar-24 Jul-23 May-24 Jun-23 Sep-23 Jun-24 Oct-23 Apr-24 1. ANZ Business Confidenc
Slide 6: Focused strategic priorities for the next three years
Focused strategic priorities for the next three years. New Zealand's leading news destination - Scalable digital audience and advertising news platform * regia journalism that grows subscriber lifetime value - High quality and efficient Number one ra i yee in audio - Create the most listened to and
Slide 7: Market performance and audience reach
1. Nielsen CMI Q2 23 – Q1 24 June 24 Fused AP15+ (Publishing Print = weekly print excluding Real Estate. OneRoof Print = Real Estate sections). 2. Nielsen Online Ratings June 2024 (desktop and domestic traffic only, does not include exclusive mobile app audience). 3. GfK Comm RAM, S1/24, Total NZ, C
Slide 8: Audience performance
8 1. Nielsen CMI Q2 23 – Q1 24 June Fused 2024 AP15+
Slide 9: 2024 half year financial results
2024 half year financial results.
Slide 10: Operating EBITDA bridge H1 2023 to H1 2024
• Significant growth in OneRoof digital revenue driven by increased listings upgrades and an increase in new listings coming to market. 2.7 2.4 • digital revenue growth offset by 21.3 0.3 21.4 planned marketing and promotional spend and higher selling costs. (2.6) (2.8) • Improved digital publishing
Slide 11: Operating results H1 2024
$ million H1 2024 H1 2023 % change Operating earnings for six months were ahead of last year despite continued difficult Reader revenue 40.5 39.8 2% operating conditions. Advertising revenue 120.3 116.4 3% • Operating revenue was 3% higher as a result Other revenue 7.5 7.1 5% of improved advertising
Slide 12: Operating expenses
Overall expenses were up 3% largely due to higher $ million H1 2024 H1 2023 % change selling costs incurred to achieve revenue improvements. People 73.8 73.0 (1%) • People cost was contained to a 1% increase, reflecting a Print and distribution 25.7 25.0 (3%) continued focus on achieving business-wi
Slide 13: Net working capital and net debt
30 June 31 December Net Debt of $30 million remains within $ million 2024 2023 target the leverage range. Trade and other receivables 47.3 45.1 • Net working capital excluding cash is $3.7 Inventories 3.3 5.1 million higher than December 2023 due to: Trade and other payables (50.6) (49.5) • seasonal
Slide 14: Operating cash flow
$ million H1 2024 H1 2023 Improved Operating Cash Flow. Operating EBITDA 1 21.4 21.3 • Cash flow from operations for six months Interest paid on bank facilities (1.3) (1.1) was $3.3 million higher at $12.1 million Interest paid on leases (2.1) (2.4) compared to 2023 primarily due to the favourable w
Slide 15: Leverage and dividend policy
30 June 31 December Net debt is projected to reduce by the end 2024 2023 of 2024 returning the leverage ratio to the low 12-months operating EBITDA (pre NZ IFRS 16) 1 end of the target range. 39.4 39.1 • Seasonal increase in leverage ratio remains 12-months interest expense 2.7 2.4 within the target
Slide 16: Divisional performance
Divisional performance.
Slide 17: OneRoof
ONEROOF Your essential property platform. % y
Slide 18: OneRoof platform and advertising
Source: NZME Analysis. 18 1. Native advertising, also called sponsored content, partner content, and branded journalism, is a type of paid advertising that appears in the style and format of the content near the advertisement's placement.
Slide 19: OneRoof audience
1,000 800 600 400 200 - Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 19 1. Nielsen Online Ratings June 2021 – 2024 monthly average by quarter (desktop and domestic traffic only, does not include exclusive mobile app audience) *Dec 2023 is taken from Niel
Slide 20: OneRoof performance metrics
- 10,000 20,000 30,000 40,000 - 10% 20% 30% 40% 50% - 100 200 300 400 500 20 Source: NZME Analysis
Slide 21: OneRoof financial results
OneRoof delivered both revenue and $ million H1 2024 H1 2023 % change profitability growth to achieve first half Digital 8.2 5.0 63% earnings of $1.4 million EBITDA, improving Print 5.8 4.4 32% on the loss for the first half of 2023. Other 0.1 0.2 (33%) • Digital revenue increased by 63% due to incr
Slide 22: OneRoof targets and 2024 initiatives
2026 2023 H1 2024 2024 initiatives Metric target actual actual progress update Reduce Audience Audience audience 606k, 703k, • Website optimisation is a key product development focus, including improved lead gap to #1 187k gap to 81k gap to generation capture and new customer engagement features for
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Slide 24: Radio audience share
24 1. GfK RAM, S1 2017 - 2024, Total NZ, M-S 12mn-12mn, AP10+, Share % (historical data available upon request)
Slide 25: Digital audio growth
50.0% +12% YOY +14% 40.0% YOY 30.0% 20.0% 10.0% - 2022 2023 2024 2022 2023 2024 1. Triton Metrics NZ July 2021 - June 2024 (12 months to June 2024) 2. Adswizz AudioMetrix (iHeartRadio NZME Radio) July 2021 - June 2024 (12 months to June 2024) 25 3. 4. RBA Monthly Radio Market Report rolling 12 month
Slide 26: Audio financial results
$ million H1 2024 H1 2023 % change Digital momentum continues with podcast revenues growing +68%, plus streaming radio Digital audio advertising 5.0 3.8 33% growth of +16%. Radio advertising 50.6 50.1 1% • Broadcast radio revenue growth +1% is pleasing Other 0.8 0.6 17% given the market declined sli
Slide 27: Audio targets and 2024 initiatives
2026 2023 H1 2024 2024 initiatives Metric target actual actual progress update • Upweighted marketing investment for The Hits delivers highest ever audience since 2014 brand launch. > 1% share • Sustained ZB and ZM share continue to underpin NZME audience reach. Audience share point 37.5%1 37.7%1 •
Slide 28: Publishing
PUBLISHING New Zealand's leading news destination
Slide 29: Publishing audience
1. Nielsen Online Ratings as of June 2024 (desktop and domestic traffic only, does not include exclusive mobile app audience). 2. NZME Analysis 29 3. Nielsen CMI Q2 23 – Q1 24 June 24 Fused AP15+ (NZH Monday to Saturday & Herald On Sunday)
Slide 30: Subscribers and yield
30 25 200 100 - 150 225 175 50 125 75 Jun-21 Sep-21 Source: NZME Analysis Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 # of subscirbers (000s) - 50 25 75 100 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 - 50 150 100 200 An
Slide 31: Publishing financial results
$ million H1 2024 H1 2023 % change Digital subscription growth underpinned Digital subscriptions 11.1 9.8 13% overall subscription revenue growth. Newspaper circulation 29.4 30.0 (2%) Total reader revenue 40.5 39.8 2% • Newspaper circulation revenue declined by 2% with 3% lower retail outlet sales a
Slide 32: Digital and print publishing results
$ million Digital Publishing Print Publishing H1 2024 H1 2023 % change H1 2024 H1 2023 % change Digital subscriptions 11.1 9.8 13% - - - Newspaper circulation - - - 29.4 30.0 (2%) Total reader revenue 11.1 9.8 13% 29.4 30.0 (2%) Digital advertising 25.8 25.6 1% - - - Print advertising - - - 24.8 27.
Slide 33: Publishing targets and 2024 initiatives
2026 2023 H1 2024 2024 initiatives Metric target actual actual progress update Digital publishing • Lift in depth and breadth of expert journalism, with increase in average session duration in H1. Subscription volume 190,000 130,000 137,000 • Enhanced subscription platform to enable a dynamic experi
Slide 34: Business and consumer confidence outlook
40.0 6.0% 30.0 5.0% 20.0 4.0% 10.0 - 3.0% (10.0) 2.0% (20.0) 1.0% (30.0) forecast Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 - Business confidence Consumer confidence Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 3.0% 5.0% 2.0% 4.0% 1.0% 3.0% - 2.0% 1.0% (1.0%) forecast forecast - (2.0%) Mar-24 Ju
Slide 35: Outlook: operating environment and capital management
OPERATING ENVIRONMENT NZME delivered growth in advertising revenue of 4% in the first quarter of the year, however this slowed in the second quarter to 2%. Quarter three is currently tracking to 1% growth year on year. We have implemented initiatives to remove $6 million of annualised cost which wil
Slide 36: Digital led strategy focused on delivering superior returns
Digital led strategy focused on delivering superior returns. cae Our central objective is to relentlessly pursue a digital led strategy across our three key platforms. NZM thrmaunenr This will set us apart from our competitors and drive returns for shareholders. Globally these digital A We are getti
Slide 37: Q&A
37 Q&A. BusinessDesk Boost your business confidence
Slide 38: Supplementary Information
Supplementary Information.
Slide 39: Other segment financial results
$ million H1 2024 H1 2023 % change Operating revenue 0.7 0.4 88% People (1.5) (1.5) (3%) Other expenses (1.7) (1.7) 1% Operating expenses (3.2) (3.2) (1%) EBITDA (incl. NZ IFRS16) 1 (2.5) (2.8) 11% NZ IFRS16 adjustment - - - EBITDA (pre NZ IFRS16) 1 (2.5) (2.8) 11% 39 1. EBITDA is a non-GAAP measure
Slide 40: Operating results reconciliation H1 2024
Operating Results NZ IFRS 16 Operating Results Exceptional and Per Financial $ million Reclass of items excl. NZ IFRS 16 Adjustments incl. NZ IFRS 16 Other Items Statements Reader revenue 40.5 - 40.5 - - 40.5 Advertising revenue 120.3 - 120.3 - - 120.3 Other revenue 7.5 - 7.5 - - 7.5 Operating reven
Slide 41: Operating results reconciliation H1 2023
Operating Results NZ IFRS 16 Operating Results Exceptional and Per Financial $ million Reclass of items excl. NZ IFRS 16 Adjustments incl. NZ IFRS 16 Other Items Statements Reader revenue 39.8 - 39.8 - - 39.8 Advertising revenue 116.4 - 116.4 - - 116.4 Other revenue 7.1 - 7.1 - - 7.1 Operating reven
Slide 42: Important information
The information in this presentation is of a general customisation costs in relation to Software as a nature and does not constitute financial product Service (SaaS) arrangements in 2021. Operating advice, investment advice, legal, financial, tax or results as stated throughout this presentation ref
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