Tag: NZME

Posting profits but what is the future bottom line?

We have become all too familiar with New Zealand media company interim and full year reports oozing red ink, so it was pleasant surprise to see three of them reporting profits last week.

The biggest earner by a large margin was Sky, which announced its net profit had risen two per cent to $41.8 million on revenue that was up a solid nine per cent to $826 million. Over the past three years its share dividend has more than doubled.

Sky’s biggest drawcard is its sports offering and it added icing to the profit announcement by disclosing that it has secured rights to English Premier League matches. It also has long-term contracts with rugby, cricket, league and the Olympics.

Then NZME waded in with a post-tax half-yearly profit of $6.6 million that reversed a $400,000 loss for the same period last year. Radio was its standout performer, with operating revenue growing eight per cent to $61.8 million, significantly ahead of its publishing revenue.

Finally, TVNZ reported a profit of $16.3 million and an end-of-year dividend of $2.2 million. In total the state-owned company contributed close to $4 million to the government coffers in 2026.

Less pleasant was the realisation of how TVNZ and NZME achieved their profits. Continue reading “Posting profits but what is the future bottom line?” →

Milestones: The punctuation marks of media moments

My attitude to milestones is somewhat ambivalent: On the one hand they mark notable events, but on the other they remind me that time presses on.

Speaking of presses, a milestone was reached last week with the announcement that NZME is to acquire the printing equipment from Stuff’s Petone plant. It will replace the behemoth that has printed the New Zealand Herald since 1995 in the purpose-built Ellerslie press hall, where I stood to watch redesigned newspapers come off the press under my watch as editor.

The Petone press is only a third the size of the machine that is housed in an iconic edifice beside the Southern Motorway at Ellerslie. It is also more modern and was relocated from Australia when Fairfax (then owner of Stuff) closed its Melbourne printing site at Tullemarine. Stuff is consolidating its printing to its more modern Christchurch plant (see Tuesday Commentary March 31 2026). 

More importantly, the Petone press is right-sized for the current circulation of the Herald.  When the Ellerslie plant was established three decades ago, the paper’s net paid circulation was well over 200,000. The Herald no longer publishes its circulation figures, but it is undoubtedly selling fewer than half the number the Goss HT70 presses were designed to pump out for each issue.

The agreement between Stuff and NZME is a good one. It ensures the equipment remains in New Zealand and push out another (inevitable) milestone. It will extend the life of the print edition of the country’s largest newspaper. NZME would not be replacing its presses if the print edition was about to be dropped. The company revealed last week that there would be annual operational savings of about $7 million a year, and that could be the deciding factor in maintaining a print edition longer than would otherwise be the case. On the other hand, it remains to be seen whether there is anyone looking to buy 30-year-old presses built for the golden age of newspapers. Continue reading “Milestones: The punctuation marks of media moments” →

A painless way to cut newsroom costs

Last September I warned of the prospect of news deserts developing in this country. Among my recommendations was a policy offering tax credits to news media organisations for the employment of journalists. The report was met with indifference by the politicians in a position to do something about the hollowing out of our news ecosystem.

Yesterday, the News and Media Research Centre at the University of Canberra released a report advocating the use of refundable tax offsets for the employment of journalists in Australia. It is an idea whose time has come – on both sides of the Tasman.

For two decades our news media have faced the profound effects of technological change on a business model that has become increasingly fragile. Part of their response to declining traditional revenue has been cuts to editorial staff. Those cuts have been made not with scalpels but with machetes. Our newsrooms are a shadow of what they once were, and regional newsrooms have suffered particularly deep incisions. Australia has suffered similar damage to its journalistic resource.

Payroll tax credits are not a new suggestion – such proposals have surfaced more than once in Australia. Canada and two U.S. states (New York and Illinois) have made them a reality. South Korea has an even broader scheme that embraces the creative industries, while France has tax incentives to encourage investment in news organisations. Continue reading “A painless way to cut newsroom costs” →

Business at 6.30am: Good move but watch for knock-on effects

NZME’s latest video venture, Herald NOW Business, had a solid launch yesterday into an uncertain world strategic environment. It also raises some strategic questions for the media company itself.

The 6.30 am business programme, available on the Herald app and streamed through ThreeNow and YouTube, is anchored by the thoroughly professional Garth Bray. He was an obvious choice and represents some of the greatest depth of television talent within NZME.

A former London correspondent for TVNZ and then a stalwart of the (sadly, axed) consumer show Fair Go, Bray is already a regular on the new programme’s companion show Ryan Bridge Today. His professional ‘home’ is the NZME-owned BusinessDesk.

Herald NOW Business (let’s abbreviate that to HNB) could not be described as innovative. It follows the familiar look and content of morning business programmes elsewhere. That, however, is not a criticism: Why change an established formula just for the sake of looking different? Continue reading “Business at 6.30am: Good move but watch for knock-on effects” →