NZME Ltd reported a statutory net profit of NZ$6.6 million for the first half of 2026, turning around a NZ$0.4 million loss in the same period of 2025, as total revenue increased 1% year-over-year to NZ$167 million.
Operating earnings before interest, tax, depreciation and amortization rose 11% to NZ$26.5 million, while free cash flow climbed to NZ$7.3 million from NZ$2.2 million. Net debt decreased by NZ$13.9 million to NZ$19.4 million, and the leverage ratio improved to 0.4 times EBITDA from 0.9 times. The board declared an interim dividend of NZ$0.03 per share, fully imputed, payable on September 23.
Total advertising revenue grew 2% to NZ$118.6 million, with operating expenses down 1% year-over-year. The company maintained capital expenditure guidance of NZ$10 million to NZ$12 million for the full year. Twelve-month operating EBITDA, excluding NZ IFRS 16 effects, increased to NZ$46.1 million from NZ$38.3 million, while interest expense fell to NZ$1.8 million.
Segment performance showed divergence between divisions. The audio division’s revenue rose 8%, with EBITDA up 19% to NZ$11.9 million, driven by a 16% increase in digital audio revenue. The publishing division reported a 6% rise in total subscriptions to 250,000, with digital-only subscribers accounting for 70% of the base. Print subscriber volumes declined 9%, though yield gains partially offset the drop, while digital subscription revenue and core digital advertising revenue each grew 1%. The property platform OneRoof posted a 9% EBITDA increase to NZ$1.8 million, with monthly app users up 54% and daily active users rising 53%.
Chief Executive Michael Boggs noted the company had returned to revenue growth and delivered positive operating leverage despite a challenging trading environment. Chief Financial Officer Jo Hempstead highlighted disciplined cost management supporting stronger earnings, cash flow and reduced debt. The company plans to invest up to NZ$15 million in a more efficient print plant over 2026 and 2027, while its content supply agreement with Google is set to expire in December 2026.
