New Zealand Herald Premium now has 70,000 subscribers.
New Zealand Herald Premium now has 70,000 subscribers.
NZME experienced a surge in online subscriptions in the past four months and says its first half operating earnings will exceed those achieved in the first half of 2019.
NZME, owner of the NZ Herald, several radio stations including Newstalk ZB and online property platform OneRoof, updated the market at its annual shareholders' meeting today – an event overshadowed by the sudden resignation of chairman Peter Cullinane.
New Zealand Herald Premium now has 70,000 subscribers, the company said while noting the recent launch of a revamped Herald smartphone app had supported that growth.
Premium customers include more than 36,000 paid digital subscribers, up 70 per cent in just four months, and 34,000 eligible print subscribers who have activated their digital subscription as part of their newspaper package.
"NZ Herald Premium has proven that New Zealanders will pay for high-quality content – we take heart in the fact that over 25 per cent of our Premium subscribers are on annual subscriptions," chief executive Michael Boggs told shareholders.
"2020 will continue to see us focus on growing digital Premium content and subscriptions and increasing digital advertising revenue."
In February NZME reported a 4 per cent increase in full-year operating profit to $19.7m but posted a net loss of $165.2m after deciding to impair the value of intangible assets to account for a lower share price.
The company said it was impossible to predict with any accuracy the impact of the Covid-19 pandemic on NZME's full-year financial performance.
However, it expected first half 2020 operating earnings before interest, tax, depreciation and amortisation, including the wage subsidy, to be higher than that achieved in the first half of 2019.
Radio revenue market share continued to increase, year-on-year. Content changes were in progress and will be completed this month.
NZME's real estate arm, OneRoof, had become the largest platform for property listings in Auckland. Its sales listings increased to 81 per cent of NZ residential listings.
The impact of Covid-19 had been significant with advertising revenue in April around 47 per cent lower than April 2019, while May revenue was 39 per cent lower than May 2019.
For this month, NZME expected revenue to be around 30 per cent lower than June 2019.
The company has been able to significantly reduce costs while also paying down debt.
Costs, including the temporary salary reductions, are currently tracking 25 per cent below 2019 levels in the second quarter of this year, NZME said, while noting it had received a $9m Government wage subsidy.
"Significant cost reductions on last year will continue," Boggs said.
NZME chief executive Michael Boggs. Photo Dean Purcell
He said salary reductions of 15 per cent taken by nearly all NZME employees "demonstrates the passion and dedication" that they have for the company.
The company had previously announced it had reduced its debt from $115m to $75m at December 31 and said today it had reduced it further to $62m as at May 31 2020.
Last week NZME said it had negotiated terms to extend its existing debt facilities by 18 months.
