NZME announces stable earnings and audience growth

NZME has announced stable earnings for the six months to June 30 and is reaching an increasing number of Kiwis across its radio, digital and publishing brands.

The company, which publishes The New Zealand Herald and nzherald.co.nz, reported a trading net profit after tax of $9.9 million for the six months, up 1 per cent from the same period last year on a pro forma basis.

"NZME's continued focus on innovation and the ongoing benefits of integration have delivered great value for shareholders in the first half of 2017. The board is pleased to declare an interim dividend of 3.5 cents per share," NZME's chairman Sir John Anderson said.

Trading earnings before interest, tax, depreciation and amortisation was up 1 per cent on the same period in 2016 to $28.2m.

Trading revenue declined 3 per cent when compared with the first half of 2016 on a pro forma basis. Digital revenue growth outweighed dollar declines in print advertising revenue for the second consecutive half year.

NZME's net profit after tax was $7.8m for the six months to June 30. The company reported net profit after tax for the six months to June 2016 of $60.8m but this was impacted by its demerger from APN and discontinued businesses.

NZME will pay an interim dividend of 3.5 cents. The company - which also owns radio stations including Newstalk ZB, The Hits and ZM - said its audience was continuing to grow and it was reaching more than 3.3 million New Zealanders.

NZME's audience across its print titles was stable, and its digital audience grew 14 per cent year on year.

"We continue to focus on creative ways to grow and leverage our news, sport and entertainment audiences, improve our targeting and develop new revenue streams," NZME chief executive Michael Boggs said.

"We are really pleased with the performance of print in the first half. The New Zealand Herald's readership has remained on an upward trend, and the Herald on Sunday remains the most-read and highest-selling Sunday newspaper in the country. In radio we have seen a positive momentum change in survey results, reflecting operational initiatives to grow our audience and revenue, including The Hits new breakfast shows, programming changes and implementing a new CRM system," Boggs said.

The company said headwinds in recent years in traditional advertising markets had continued in 2017. First half revenue was slightly better than expected. Trading revenue for the first six weeks of the second half of the year was down 5 per cent on the same period last year.

NZME is appealing the Commerce Commission's refusal to allow its proposed merger with Fairfax NZ and will argue that the regulator's decision was wrong in "fact and law".

The appeal is being heard in the High Court in October and is expected to take nine days.