Annual Shareholders' Meeting Presentation and Addresses

NZME 2024 Annual Shareholders’ Meeting Presentation and Addresses


AUCKLAND, 11 April 2024: NZME Limited (NZX: NZM, ASX: NZM) (“NZME”) attaches the Chairman of the Meeting and the CEO’s addresses, and presentation which will be delivered at the Annual Shareholders’ Meeting being held in the NZME iHeart Lounge at 2 Graham Street, Auckland, and online today, commencing at 3:00pm (NZT).

At today’s meeting, details of the company’s revised three-year strategy will be shared and a first quarter 2024 trading update will be provided.

Strategic priorities

The company shares its refreshed strategic priorities for the next three years:
• To be number one in audio
• To be New Zealand’s Leading News Destination
• OneRoof to be your essential property platform

Barbara Chapman, Chairman of the NZME Board, says that despite a tough economic environment impacting NZME’s financial results for 2023, NZME has a performance-driven strategy with a relentless focus on digital innovation and transformation.

“We have challenged ourselves to set clear and aggressive targets under each of these strategic priority areas as we strive for excellence and deliver continued value for our shareholders. Our strong focus on digital transformation complements our print and broadcast businesses, which also remain incredibly strong given their significant contributions to profitability,” she says.

“NZME is at the forefront of media in New Zealand with a hugely talented team that brings leading edge products and services to the local market, ensuring we are constantly adapting to changing consumer habits and how our audiences are choosing to consume content,” she says.

2024 first quarter performance

The company also reports significant digital revenue growth of 69% year-on-year for its OneRoof property business in the first quarter of 2024, with overall EBITDA of $1.4 million for the first quarter for OneRoof - a significant improvement from the loss in last year’s first quarter and full year.

Michael Boggs, CEO of NZME, says the strong growth is a powerful demonstration of OneRoof delivering on its potential and supported by a recovery in the residential real estate listings market after last year’s downturn and is driven by continued improvement in the number of residential for-sale listings upgrades.

“OneRoof is well placed to maintain its positive momentum in revenue and profitability, regardless of how the real estate market performs this year. With more agents and vendors than ever before seeing the value of OneRoof’s offering and with a continued focus on increasing listings upgrades, we are capitalising on OneRoof’s potential to deliver significant growth, he says.

Capital Management

Barbara Chapman says the Board is committed to maximising distributions to shareholders within the existing debt facilities and in line with the dividend policy.

“For the 2023 year, dividends totalling 9 cents per share have been paid, made up of a 3-cent interim dividend and a 6-cent final dividend paid on 20 March this year.

“With net debt of $18 million at the end of December, the leverage ratio was at the low end of the target range. However, net debt is now at the upper end of the range following the payment of the final dividend in March.

“It remains an uncertain operating environment and the Board believes it is appropriate to continue to operate at the lower end of the target leverage ratio.

“In the absence of compelling investment opportunities, we expect to be below the lower end of the target leverage ratio at the end of 2024. Accordingly, the Board will continue to consider the capital management options that are available,” she says.

Outlook

Boggs says the operating environment continues to be challenging. However, NZME’s advertising revenue in the first quarter of 2024 has been stronger, with 4 percent growth year on year, reflecting the company’s increased overall market share.

“OneRoof has performed very well in the first quarter, with new real estate listings coming to market having recovered to historical averages. OneRoof’s revenue growth is outperforming listings’ market growth, and we are pleased to be delivering strong profitability.

“We remain cautious due to the current operating environment. However, we expect NZME 2024 EBITDA in the range of $57-$61 million, resulting in growth compared to last year,” he says.

ENDS

Authorised by the NZME Board

For further information please contact:

For media

Kelly Gunn
GM Communications
+64 27 213 5625
[email protected]


For investors

David Mackrell
Chief Financial Officer
+64 21 311 911
[email protected]


 

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Announcement PDF