August 27, 2024 • 6 mins
New Zealand Media and Entertainment (NZME) says its first-half revenue was slightly up on the year before, despite a tough trading environment.
The media group behind the New Zealand Herald, BusinessDesk, Newstalk ZB and OneRoof reported a first-half net profit of $1.9 million, down 4.3 percent on the year before.
However, there was a 3 percent lift in operating revenue and other income to $171 million.
NZME chief executive Michael Boggs says the company will be in for a tough few months - but hope is returning to the economy.
"We are seeing signs of improvement, we're obviously seeing the OCR coming down, we're seeing business and consumer confidence start to lift - so we'd love to see that flow through."
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Now media company ends at Me, which owns News Talk
ZB and The Herald, has reported today it's posted a
small profit of one point nine million dollars for the
first half of the year. That's down four point three
on last year. Revenue is up. Advertising as holding steady,
and that is despite the fact that the media sector
has had a pretty tough year so far. We've had
the shutting down of Newshub and TVNZ, cutting a whole
bunch of programs. Michael Boggs is the chief executive High Bogszen.
Speaker 2 (00:22):
Good afternoon.
Speaker 1 (00:22):
You must be pretty pleased with this result given what's
going on in the media sector.
Speaker 2 (00:26):
You're absolutely right. It is a very tough environment, I
think in every sector in New Zealand at the moment,
but certainly as in media, and we're seeing that right
around the market.
Speaker 1 (00:34):
How did you manage to hold onto the advertising dollar?
I mean you've seen it completely evaporate from TV So
how did you guys keep it?
Speaker 2 (00:40):
I think the key thing is, and I'll take a
station like this, you know, we just don't go to
the market and talk about selling News Talks ZB. We
sell the rest of the radio stations we have. We
bundled out obviously with the New Zealand Herald, and we're
seeing fantastic growth with one Roof, which is a real
key product for us for the future.
Speaker 1 (00:54):
But so why are they putting their money into print
and radio if they're not putting it into TV.
Speaker 2 (01:00):
When we go and talk to a customer, we talk
about what's the solution they're looking for? What are you
trying to achieve. We don't just come and try and
sell you a TV ad, And so when a customer
wants to get to a particular audience set, we actually
sell all of those platforms, which just gives them a
much better reach and a much better outcome.
Speaker 1 (01:15):
And getting a bit of product.
Speaker 2 (01:16):
Absolutely.
Speaker 1 (01:17):
Yeah, Okay, what do you think is going to happen
in the second half though, because it sounds like it
might get harder.
Speaker 2 (01:21):
Certainly is and we're seeing that already. So in the
quarter one of this year, so that's January March or
on a calendar year, we saw four percent growth year
on year, two percent in quarter two, and what we're
seeing in quarter three at the moment is about one
percent growth. Now, we are seeing some signs of improvement,
though we're obviously seeing the ocr coming down we're seeing
business and consumer confidence start lifts, so you know, we'd
(01:41):
love to see that actually flow through to people spending.
Speaker 1 (01:44):
One percent growth and what we're going through, which I
mean some people in some parts the economy is saying
this is the hardest thing they've ever been through. One
percent growth is not bad.
Speaker 2 (01:53):
Well, the great news is one percent growth is against
the market because the market is actually going backwards from
an advertising perspective. So we're delighted to be taking, of course,
each of our platforms and we want to continue doing that.
Speaker 1 (02:03):
Hey, but so you'll rise right, we've seen the turning
point where the ocr has now come down and a
whole bunch of bank rates are coming down. Do you
think it still gets hard as thoh? Or does it
get easier?
Speaker 2 (02:14):
I think people's heads are starting to lift now. It's
certainly tough, and you know, your listeners are no way
better than I as they run their businesses, for example.
But I think you know, I had an old boss
that said hope isn't a strategy. But I think we're
all hoping for better. We're actually talking about it getting better.
We're saying business confidence is feeling better, and that's all
we need. To get the country going again.
Speaker 1 (02:32):
Okay, I've hope it's not a strategy. Then you're going
to have to still make plans for it potentially to
be worse. So you're going to cut six million out
yet in expenditure.
Speaker 2 (02:39):
We've already done that, so it's not something we're announcing
today that hey we've got a whole lot of new
cost cutting to do. That's happened. It's done through efficiencies
across the business, and so we're pleased we've actually done
that at the beginning of this half already and so
that'll flow into the second half of this year.
Speaker 1 (02:52):
How on earth am I right in thinking One Roof
turned to profit for the first time?
Speaker 2 (02:56):
It absolutely did.
Speaker 1 (02:57):
How did it do that given what's going on in
the housing market.
Speaker 2 (02:59):
Well, we're doing a great job. Firstly, we're growing the
number of people that come to the site. We've closed
the gap to the number one player to be just
ten percent difference. Now we've got more and more. We've
got more and more people upgrading their houses on the
platform and it's a great product. So people are using
it to inquire about houses and people are using it
to sell the houses.
Speaker 1 (03:15):
So is it kind of counterintuity. When the market is
actually doing really really badly, people are pumping a lot
of money into the advertising for their houses.
Speaker 2 (03:22):
Funny enough, it's actually the opposite. So we're really pleased
to have done well in a tough environment. Because if
you don't think you're going to sell the hell your house,
you're probably not going to advertise, even though you probably should.
Like where if you think you are going to sell
your house, you will spend some more on advertising because
you want to get the best price. So that's what
we're looking for in the second half of this year
and into next year.
Speaker 1 (03:41):
Okay, so on what's going on with the media. Are
you happy with what you've got from the government in
terms of the Digital Marketing Bill and or Digital Bargain
and Bill and all that stuff.
Speaker 2 (03:49):
Well, they're certainly making progress and we expect to see
more of that in the coming weeks. All the noises
and signals are appropriate and I look forward to seeing
it will come.
Speaker 1 (03:58):
Tru are boggsy that it's the answer because it hasn't
worked in Canada.
Speaker 2 (04:01):
Well, it's not going to be the panacea, but we
do know that all of the platforms, whether it be Google, Facebook,
or whether it be all the new AAI organizations are
taking a content and not paying it for us.
Speaker 1 (04:11):
This doesn't cover AI, does.
Speaker 2 (04:12):
It may do?
Speaker 1 (04:14):
What? What do you know that I don't know.
Speaker 2 (04:16):
Well, we'll see what the legislation says. We'll see.
Speaker 1 (04:18):
How are you guys still lobbying for the old AI
to be covered?
Speaker 2 (04:21):
Well, why shouldn't it be? Does check GPT take all
of our data? Well?
Speaker 1 (04:25):
I would argue with you that the AI should be covered,
actually more so than anything else. Yeah, so it feels
like it should be, but that doesn't mean that that
the guys in the beehive necessarily see it that way.
Speaker 2 (04:35):
Well, if I ask chet GPT where it gets its
content from. Last time I did it, it said between ten
and fourteen percent of it came from the New Zealand Herald.
Speaker 1 (04:42):
Was it honest about it? Was it?
Speaker 2 (04:43):
That's what I said? Yeah?
Speaker 1 (04:45):
Okay, Well that's that's a slam dunk, isn't it?
Speaker 2 (04:47):
I think it is. And so that's where are we're
continuing to focus on. It should be included and we
should be paid for that content being used for these
companies to earn income.
Speaker 1 (04:55):
Right, Boxy, what happened with the ad the Hobson's pledge ad.
Speaker 2 (04:58):
Hey, as you know, it was an a it's not
something that the company stands up and takes a position on.
We're absolutely reviewing guidelines. We're looking at what other companies
around the world do, and so you know, and they're
not too distant future, you'll see us come out and
talk about whatever.
Speaker 1 (05:12):
Are you guys going to front foot and tell us
if there's a change of position on this one.
Speaker 2 (05:16):
Absolutely, we're very clear on what we will do in
the future and be clear on it.
Speaker 1 (05:21):
So what I didn't understand was it was kind of
obvious that a position needed to be taken on it
during the election campaign because you remember, you will remember
the c to you the Union took out a personal
attack on Chris Luxon, who's now obviously the Prime minister,
and that made a lot of people really angry. So
why at that point didn't you guys make a decision
and say this kind of add becacy doesn't happen on
the front page.
Speaker 2 (05:42):
And so I think that's a really good point and
something again that will review as part of these guidelines. Again, clearly,
they're not ads that we're saying, this is a position
we take as an organization. There's lots of arguments around
freedom of speech, but there's also and a lot of
other arguments around making sure that you know we're not
offending people. I've had plenty of subscriber feedback. I've had
plenty of advertiser feedback in both directions. Oh really absolutely?
Speaker 1 (06:05):
Okay? Have you lost any subscribers over it? We absolutely
have both both accounts. Yep. And have you lost any
advertisers over absolutely? Really?
Speaker 2 (06:13):
Quite a lot, not significant, but people have sent us
messages to let us know that they've got an.
Speaker 1 (06:17):
Opinion and they're not happy, and so they've pulled out.
Speaker 2 (06:19):
That's right.
Speaker 1 (06:20):
How much damage does it cost you?
Speaker 2 (06:21):
It's not significant, but it's certainly something worth taking into account.
We're a corporate organization. We've got to do what's right
for this business.
Speaker 1 (06:28):
Okay, So when do you make a call, it won't
be far away, all right? Listen, Boggsy, thank you very
much for being so frank with us. I really appreciates.
Michael Bogg's the chief executive of enzed.
Speaker 2 (06:36):
Me for more from Hither duplessy Alan Drive listen live
to news talks.
Speaker 1 (06:40):
It'd be from four pm weekdays, or follow the podcast
on iHeartRadio,
Now media company ends at Me, which owns News Talk
ZB and The Herald, has reported today it's posted a
small profit of one point nine million dollars for the
first half of the year. That's down four point three
on last year. Revenue is up. Advertising as holding steady,
and that is despite the fact that the media sector
has had a pretty tough year so far. We've had
the shutting down of Newshub and TVNZ, cutting a whole
bunch of programs. Michael Boggs is the chief executive High Bogszen.
Speaker 2 (00:22):
Good afternoon.
Speaker 1 (00:22):
You must be pretty pleased with this result given what's
going on in the media sector.
Speaker 2 (00:26):
You're absolutely right. It is a very tough environment, I
think in every sector in New Zealand at the moment,
but certainly as in media, and we're seeing that right
around the market.
Speaker 1 (00:34):
How did you manage to hold onto the advertising dollar?
I mean you've seen it completely evaporate from TV So
how did you guys keep it?
Speaker 2 (00:40):
I think the key thing is, and I'll take a
station like this, you know, we just don't go to
the market and talk about selling News Talks ZB. We
sell the rest of the radio stations we have. We
bundled out obviously with the New Zealand Herald, and we're
seeing fantastic growth with one Roof, which is a real
key product for us for the future.
Speaker 1 (00:54):
But so why are they putting their money into print
and radio if they're not putting it into TV.
Speaker 2 (01:00):
When we go and talk to a customer, we talk
about what's the solution they're looking for? What are you
trying to achieve. We don't just come and try and
sell you a TV ad, And so when a customer
wants to get to a particular audience set, we actually
sell all of those platforms, which just gives them a
much better reach and a much better outcome.
Speaker 1 (01:15):
And getting a bit of product.
Speaker 2 (01:16):
Absolutely.
Speaker 1 (01:17):
Yeah, Okay, what do you think is going to happen
in the second half though, because it sounds like it
might get harder.
Speaker 2 (01:21):
Certainly is and we're seeing that already. So in the
quarter one of this year, so that's January March or
on a calendar year, we saw four percent growth year
on year, two percent in quarter two, and what we're
seeing in quarter three at the moment is about one
percent growth. Now, we are seeing some signs of improvement,
though we're obviously seeing the ocr coming down we're seeing
business and consumer confidence start lifts, so you know, we'd
(01:41):
love to see that actually flow through to people spending.
Speaker 1 (01:44):
One percent growth and what we're going through, which I
mean some people in some parts the economy is saying
this is the hardest thing they've ever been through. One
percent growth is not bad.
Speaker 2 (01:53):
Well, the great news is one percent growth is against
the market because the market is actually going backwards from
an advertising perspective. So we're delighted to be taking, of course,
each of our platforms and we want to continue doing that.
Speaker 1 (02:03):
Hey, but so you'll rise right, we've seen the turning
point where the ocr has now come down and a
whole bunch of bank rates are coming down. Do you
think it still gets hard as thoh? Or does it
get easier?
Speaker 2 (02:14):
I think people's heads are starting to lift now. It's
certainly tough, and you know, your listeners are no way
better than I as they run their businesses, for example.
But I think you know, I had an old boss
that said hope isn't a strategy. But I think we're
all hoping for better. We're actually talking about it getting better.
We're saying business confidence is feeling better, and that's all
we need. To get the country going again.
Speaker 1 (02:32):
Okay, I've hope it's not a strategy. Then you're going
to have to still make plans for it potentially to
be worse. So you're going to cut six million out
yet in expenditure.
Speaker 2 (02:39):
We've already done that, so it's not something we're announcing
today that hey we've got a whole lot of new
cost cutting to do. That's happened. It's done through efficiencies
across the business, and so we're pleased we've actually done
that at the beginning of this half already and so
that'll flow into the second half of this year.
Speaker 1 (02:52):
How on earth am I right in thinking One Roof
turned to profit for the first time?
Speaker 2 (02:56):
It absolutely did.
Speaker 1 (02:57):
How did it do that given what's going on in
the housing market.
Speaker 2 (02:59):
Well, we're doing a great job. Firstly, we're growing the
number of people that come to the site. We've closed
the gap to the number one player to be just
ten percent difference. Now we've got more and more. We've
got more and more people upgrading their houses on the
platform and it's a great product. So people are using
it to inquire about houses and people are using it
to sell the houses.
Speaker 1 (03:15):
So is it kind of counterintuity. When the market is
actually doing really really badly, people are pumping a lot
of money into the advertising for their houses.
Speaker 2 (03:22):
Funny enough, it's actually the opposite. So we're really pleased
to have done well in a tough environment. Because if
you don't think you're going to sell the hell your house,
you're probably not going to advertise, even though you probably should.
Like where if you think you are going to sell
your house, you will spend some more on advertising because
you want to get the best price. So that's what
we're looking for in the second half of this year
and into next year.
Speaker 1 (03:41):
Okay, so on what's going on with the media. Are
you happy with what you've got from the government in
terms of the Digital Marketing Bill and or Digital Bargain
and Bill and all that stuff.
Speaker 2 (03:49):
Well, they're certainly making progress and we expect to see
more of that in the coming weeks. All the noises
and signals are appropriate and I look forward to seeing
it will come.
Speaker 1 (03:58):
Tru are boggsy that it's the answer because it hasn't
worked in Canada.
Speaker 2 (04:01):
Well, it's not going to be the panacea, but we
do know that all of the platforms, whether it be Google, Facebook,
or whether it be all the new AAI organizations are
taking a content and not paying it for us.
Speaker 1 (04:11):
This doesn't cover AI, does.
Speaker 2 (04:12):
It may do?
Speaker 1 (04:14):
What? What do you know that I don't know.
Speaker 2 (04:16):
Well, we'll see what the legislation says. We'll see.
Speaker 1 (04:18):
How are you guys still lobbying for the old AI
to be covered?
Speaker 2 (04:21):
Well, why shouldn't it be? Does check GPT take all
of our data? Well?
Speaker 1 (04:25):
I would argue with you that the AI should be covered,
actually more so than anything else. Yeah, so it feels
like it should be, but that doesn't mean that that
the guys in the beehive necessarily see it that way.
Speaker 2 (04:35):
Well, if I ask chet GPT where it gets its
content from. Last time I did it, it said between ten
and fourteen percent of it came from the New Zealand Herald.
Speaker 1 (04:42):
Was it honest about it? Was it?
Speaker 2 (04:43):
That's what I said? Yeah?
Speaker 1 (04:45):
Okay, Well that's that's a slam dunk, isn't it?
Speaker 2 (04:47):
I think it is. And so that's where are we're
continuing to focus on. It should be included and we
should be paid for that content being used for these
companies to earn income.
Speaker 1 (04:55):
Right, Boxy, what happened with the ad the Hobson's pledge ad.
Speaker 2 (04:58):
Hey, as you know, it was an a it's not
something that the company stands up and takes a position on.
We're absolutely reviewing guidelines. We're looking at what other companies
around the world do, and so you know, and they're
not too distant future, you'll see us come out and
talk about whatever.
Speaker 1 (05:12):
Are you guys going to front foot and tell us
if there's a change of position on this one.
Speaker 2 (05:16):
Absolutely, we're very clear on what we will do in
the future and be clear on it.
Speaker 1 (05:21):
So what I didn't understand was it was kind of
obvious that a position needed to be taken on it
during the election campaign because you remember, you will remember
the c to you the Union took out a personal
attack on Chris Luxon, who's now obviously the Prime minister,
and that made a lot of people really angry. So
why at that point didn't you guys make a decision
and say this kind of add becacy doesn't happen on
the front page.
Speaker 2 (05:42):
And so I think that's a really good point and
something again that will review as part of these guidelines. Again, clearly,
they're not ads that we're saying, this is a position
we take as an organization. There's lots of arguments around
freedom of speech, but there's also and a lot of
other arguments around making sure that you know we're not
offending people. I've had plenty of subscriber feedback. I've had
plenty of advertiser feedback in both directions. Oh really absolutely?
Speaker 1 (06:05):
Okay? Have you lost any subscribers over it? We absolutely
have both both accounts. Yep. And have you lost any
advertisers over absolutely? Really?
Speaker 2 (06:13):
Quite a lot, not significant, but people have sent us
messages to let us know that they've got an.
Speaker 1 (06:17):
Opinion and they're not happy, and so they've pulled out.
Speaker 2 (06:19):
That's right.
Speaker 1 (06:20):
How much damage does it cost you?
Speaker 2 (06:21):
It's not significant, but it's certainly something worth taking into account.
We're a corporate organization. We've got to do what's right
for this business.
Speaker 1 (06:28):
Okay, So when do you make a call, it won't
be far away, all right? Listen, Boggsy, thank you very
much for being so frank with us. I really appreciates.
Michael Bogg's the chief executive of enzed.
Speaker 2 (06:36):
Me for more from Hither duplessy Alan Drive listen live
to news talks.
Speaker 1 (06:40):
It'd be from four pm weekdays, or follow the podcast
on iHeartRadio,
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