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NZME makes good start with paywall

While New Zealand advertising demand was softer in 2018 due to economic conditions, the rate of decline in NZME’s revenue and earnings continued to slow, the annual meeting was told today.

During the year NZME invested in a number of promising new revenue opportunities to grow long term shareholder value.

NZME are progressing a strategy to grow new revenue streams and retain revenue from traditional advertising sources.

NZME’s full year 2018 statutory net profit after tax was $11.6 million, representing 6.0 cents per share.

“Trading NPAT, which provides a useful representation of our ongoing earnings, was $18.9 million, or 9.6 cents per share.”

Chief executive Michael Boggs said the launch of New Zealand Herald Premium (beyond the paywall) has succeeded in reaching the milestone of 10,000 paying digital subscribers.

“This was our target to achieve within the first year so to reach this target within just 6 weeks is fantastic.

“Pleasingly, over 35% have opted for an annual subscription. We have also seen more than 20% of our existing five-to-seven day print subscribers activate their digital access.”

 OneRoof now has 70% of residential property listings with continued revenue growth momentum. Advertising bookings year to date are tracking about 3% below last year but have declined at a slower rate than full year 2018, with growth in radio advertising revenue.

 “The year on year declines in the Agency market experienced in the second half of 2018 have continued into the first half of 2019, impacting digital revenues, however the market is now showing early signs of an improving trend compared to the same period last year.

“Our focus on cost reductions have continued with initiatives delivering improvement in the underlying cost base. The company is on target to reduce debt in line with our Capital Management Policy.”




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