New Zealand Media and Entertainment has announced its financial results for the full year ended 31 December 2020, reporting Statutory Net Profit After Tax of $14.2 million and three percent growth in Operating Earnings Before Interest Tax Depreciation and Amortisation to $67.3 million.
NZME CEO Michael Boggs says: “Our team at NZME continued to focus on delivering for the 3.3 million Kiwis who engage with our platforms. Our commercial partners have also shown extraordinary resilience and together, we have delivered a result we can all be very proud of. This is especially so given the immense and ongoing challenges we have faced since early last year.”
In its announcement NZME reports operating revenue of $331.2 million, down 11 percent on the same period in 2019 – “reflecting the significant impacts of Covid-19 on advertising.”
Boggs says: “The initial shock of Covid-19 on NZME saw advertising revenues across our business fall by close to 50 percent. But Kiwi business owners understand the value of staying engaged with their audiences and as New Zealand moved through the crisis phase of the pandemic, advertising spend steadily returned. It’s very pleasing that we ended 2020 with advertising revenue in some areas approaching levels similar to 2019.”
Chairman Barbara Chapman credited NZME’s people and its leadership: “The NZME executive swiftly led initiatives ensuring NZME continued to deliver on our responsibilities as an Essential Service while prioritising the health and safety of our people.
“The reshaping of our business in 2020 means NZME remains in a good position as the ongoing impacts of Covid-19 are felt into 2021 and possibly beyond.”
The NZ Herald Premium news subscription service grew to 102,000 subscribers, while real estate platform OneRoof continues to grow, now boasting more than 89 percent of New Zealand’s residential for-sale real estate listings.
As for this year’s outlook, on the basis of continued improvement in economic conditions, Covid-19 recovery, improved revenue trends and permanent cost reductions, NZME expects profit growth in 2021.