NZME lowers 2023 guidance amid ad revenue decline

NZME Limited has updated its guidance for the fiscal year 2023 due to challenging economic conditions and a decline in advertising revenue.

Despite some improvement in business confidence in the second half of the year, advertising revenue results have not consistently reflected this.

Advertising revenue for the third quarter was down 2 percent year on year, while October saw a 1 percent year on year growth.

However, November and December are currently pacing slower, with several customer campaigns being cancelled or deferred until 2024.

As a result, NZME now expects its EBITDA for 2023 to be between $57 million and $59 million.

The company is also continuing its transition to a digital-led business and will provide further updates to shareholders at its Investor Day on November 15, 2023.