NZME chief executive Michael Boggs. Photo / Michael Craig
NZME chief executive Michael Boggs. Photo / Michael Craig
NZME has bought one of the country’s leading regional news companies - reinforcing, it says, its commitment to local and community journalism.
The NZ Herald and Bay of Plenty Times publisher has bought Tauranga-based SunMedia - owner of the SunLive website and publisher of the Weekend Sun, Coast & Country News and New Farm Dairies publications - for an undisclosed, confidential sum.
NZME said the SunMedia sales and news teams would continue to operate under their brand but report through to NZME leaders, who would help support collaboration with the company’s wider sales and newsroom teams.
SunMedia has a team of 28 people, including 17 permanent/fixed-term employees who would receive a conditional offer of employment, NZME said.
SunMedia has been owned by Tauranga couple Claire Rogers and the late Brian Rogers for the past 23 years, with their platform and newspapers operating throughout the wider Bay of Plenty region.
Brian Rogers died in 2022 and his wife says it has not been the same without him by her side.
“While this decision is not an easy one, it is the right move to ensure Tauranga continues to have the best local news platforms heading into the future,” Claire Rogers said in a statement today.
“I would like to thank the community, our loyal advertisers and readers, but mostly the incredible SunMedia team who have worked tirelessly to tell community stories and bring you breaking news 24/7.”
NZME chief executive Michael Boggs said he was delighted the company was building a strong stable of digital platforms and local mastheads.
“This purchase demonstrates NZME’s commitment to supporting local journalism, and contributes to NZME’s Publishing strategy, ensuring we operate a high-quality, efficient print business that services local communities and advertisers, as well as having a high-performing digital news offering.
The SunLive website.
“SunMedia has a proud local history, with a dedicated newsroom, sales team and local delivery network that have been ably run for two decades by Claire and her husband Brian, who sadly passed away in 2022.
“We are pleased to be able to continue to invest in its future, supporting local journalism, as well as its sales and delivery capabilities in the region.”
NZME already reaches almost 260,000 people in Bay of Plenty through its digital, newspaper and radio channels, including the Bay of Plenty Times, The Hits Bay of Plenty, Te Puke Times, Hauraki Coromandel Post and Katikati Advertiser.
“SunMedia’s platforms will further complement our extensive offering of local news content and entertainment across the region, as well as providing further opportunities for local advertisers,” Boggs said.
“With NZME’s infrastructure, support systems and processes, I believe this will ensure Sun Media’s print and digital platforms remain successful well into the future.”
The sale is expected to be completed by the end of this month.
As well as the Herald and Bay of Plenty Times, NZME owns property portal OneRoof, NewstalkZB and a suite of entertainment radio stations including ZM, The Hits and Coast.
In February, NZME announced operating earnings of $56.2 million for its 2023 financial year - 13 per cent down on the previous year and just below the guidance it advised in November.
The company’s net profit after tax was $12.2m, down from $22.7m in 2022. Operating revenue was $346.6m, down 5 per cent from 2022.
The result, while down on 2022, showed NZME to be one of the best-performing major commercial media businesses of those that report their results.
The Weekend Sun newspaper.
At the time, Boggs said despite the financial results being “heavily impacted” by challenging economic conditions, the company had performed well, “adapting to the challenges and continuing to deliver digital revenue growth”.
“Business and consumer confidence was low throughout the year, with inflationary pressures and higher interest rates contributing to a very challenging operating environment for many New Zealand businesses. Despite this, NZME fared well compared to the market, maintaining a strong audience base of 3.5 million Kiwis or 85 per cent of people aged 15+,” he said.
Among highlights, the company said its publishing subscriptions had increased to 222,000, including 130,000 digital-only subscriptions.
“The publishing digital business is profitable, including when taking into account the full investment in the journalism that appears on NZME’s digital platforms, and when the stories appear in NZME’s print publications.”
At the time of the result, Boggs said there were positive signs for 2024, “with January and February advertising revenues pacing ahead of last year, business and consumer confidence on upward trends, and a recovering real estate market”.
He said sentiment among market commentators remained one of economic uncertainty and there was no clear consensus on outlook.
“We are well-positioned to deliver improved results as market conditions improve. We remain conscious of continued cost pressures across our business and will focus on efficiency improvement opportunities.
“We are pleased to have declared a final dividend for 2023 at the same level as last year, particularly against the backdrop of a difficult market.”
