NZME 2019 Full Year Results

NZME LIMTED 2019 FULL YEAR FINANCIAL RESULTS Strong second half performance delivers solid platform for 2020 2019 Annual Results Highlights: o Strong audience of 3.2 million representing 80% of the New Zealand population and a NZ Herald weekly brand audience of 1.7 million. o Over 46,000 NZ Herald Premium subscribers including over 21,000 paid premium digital subscribers, generating $1.7 million revenue in the first 8 months since launch. o Radio revenue growth of 5% in the second half of the year, up 2% year on year to $110.9 million in the 2019 financial year. o Strong momentum in Digital Classifieds and NZ Herald digital premium subscription revenue, contributing to total Digital revenue of $60.4 million in 2019. o 2019 Statutory Net Loss After Tax of $165.2 million, compared to Net Profit After Tax of $11.6 million in 2018, impacted by impairment of intangible assets of $175.0 million recognised as at 31 December 2019. o 2019 Operating Net Profit After Tax ("NPAT") of 19.7 million and Operating EPS3 of 10.0 cents, an increase of 4% compared to the previous corresponding period. o Operating EBITDA of $50.6 million, down 7% on prior year. 2018 benefitted from an extra publishing week compared to 2019 - adjusting for this, 2019 EBITDA decreased by 5% against a comparable period in 2018, with the second half 2019 EBITDA up 4% against the comparable second half in 2018. o Cost savings and increased efficiencies across the business delivered a reduction in operating expenses of 4% compared to the previous corresponding period. o Incremental digital classifieds expenses were $7.1 million, an increase of $1.0 million - delivering an increase of digital classified revenue from $0.9m in 2018 to $3.2m in 2019. o Net Debt reduced by $23.6 million to $74.7 million and leverage ratio reduced to 1.5 times Operating EBITDA. Please refer to the attached 2019 Annual Report, 2019 Full Year results presentation and 2019 Full Year results announcement for full details and analysis of the result. NZME will host a webcast for investors and analysts, hosted by Michael Boggs (Chief Executive Officer) and David Mackrell (Chief Financial Officer) commencing at 10.00am NZT today, Tuesday 25 February 2020 to discuss the 2019 Full Year Results. Please refer to the 2019 Full Year results announcement for details of the webcast. Julia Belk Investor Relations Manager T: +64 21 2408 997 Email: julia.belk@nzme.co.nz End CA:00348894 For:NZM Type:FLLYR Time:2020-02-25 08:47:31