BE SEEN. BE HEARD. EVERYONE'S HERE.
Keeping Kiwis
in the know
NZME Limited Annual Report for
the year ended 31 December 2024
Contents
2024 financial results summary
4
Division key metrics
5
Chairman’s and CEO’s report
6
Financial commentary
12
Our sustainability commitment
16
Climate related disclosures
27
2024 awards
48
The board
50
The executive team
52
Corporate governance
54
Statutory disclosures
65
Consolidated financial statements
70
Independent auditor’s report
120
Directory
124
This annual report is dated 25 February 2025 and
is signed on behalf of the Board of Directors by:
Barbara Chapman
Carol Campbell
Chairman
Director
Date: 25 February 2025
2 NEW ZEALAND MEDIA AND ENTERTAINMENT
ANNUAL REPORT 2024 3
Results
summary
For the year end 31 December 2024
Operating revenue 1
2023 $340.8m
Operating EBITDA 1
2023 $56.2m
$345.9m $54.2m
Operating NPAT 1
2023 $14.1m
Operating EPS 1
2023 7.7cps
$12.1m
6.5cps
Statutory NPAT
2023 $12.2m
Cash flow from operations
2023 $17.3m
($16.0m)
$11.3m
Net debt
2023 $18.0m
Final dividend
Payable on 31 March 2025
$24.1m
6.0cps
1 GfK Comm RAM, S3/24, Total NZ, Cume, M-S 12mn-12mn, AP10+ (unless otherwise stated).
4 NEW ZEALAND MEDIA AND ENTERTAINMENT
Division
key metrics
Audio
Radio
brands
10
Publishing
Increase in digital-
only subscriptions
year-on-year
16%
Print publications
across New Zealand
12
OneRoof
Increase in
listings enquiries
year-on-year
32%
Listings
upgrades outside
of Auckland
24%
Listings
upgrades
in Auckland
43%
Increase in
digital revenue
year-on-year
51%
1 GfK Comm RAM, S3/24, Total NZ, Cume, M-S 12mn-12mn, AP10+ (unless otherwise stated). 2 Adswizz Jan-Sep 2024 & Triton
Metrics NZ Nov-Dec 2024, average monthly reach. (October figures unavailable due to transition to Triton) 3 RBA Monthly
Radio Market Report rolling 12 months as at December 2024 (radio and digital revenue share between NZME and Mediaworks)
4 Nielsen Online Ratings December 2024 (desktop and domestic traffic only, does not include exclusive mobile app audience).
5 Nielsen CMI Q3 23 – Q4 24 December 24 Fused AP15+ (Publishing Print = weekly print excluding Real Estate. OneRoof Print
= Real Estate sections).
iHeartRadio audience
943,300
2
OneRoof.co.nz audience
793,000
4
nzherald.co.nz audience
2,035,000
4
Print audience
1,704,000
5
Radio audience
1,862,600
1
NZME radio brand
audience market share
36.6%
1
NZME audio revenue
market share
44.6%
3
Subscribers across print and digital
236,000
ANNUAL REPORT 2024 5
Kia ora and welcome to New Zealand Media and
Entertainment’s Annual Report for the year ended
31 December 2024.
There have been several key things that have helped drive
NZME’s success in what has been a very challenging time
for the media industry. With a clear strategy that has digital
transformation at its heart, a consistent customer focus,
and continued innovation and investment in our digital
capability, this has created a strong foundation for growth.
We remain strongly focused on digital transformation,
rapidly enhancing our customer experiences and
leveraging emerging technologies to grow our competitive
advantage.
The digital landscape is crucial in today's media
environment, which is why our growth strategy focuses
on enhancing our digital capabilities, whilst maintaining
the strength of our traditional platforms. We're focused on
enhancing user experiences across all our platforms, using
tools to leverage data insights to better serve our audiences.
Both digital and traditional print and terrestrial radio
platforms play important complementary roles. While
digital continues to grow in importance, print and
terrestrial radio remain valued mediums for our audiences
and advertisers. Our integrated approach sees us leverage
the strengths of both digital and traditional media to
provide the best possible offering to our diverse audiences
across the country.
Despite continued challenges across the media industry,
NZME has performed well thanks to a digital strategy and
our uniqueness in offering a strong, diverse portfolio of
platforms for advertisers.
OneRoof has performed strongly, once again growing
both audience and revenue, demonstrating its significant
potential in creating value for shareholders. We remain
confident that OneRoof will continue to grow at pace,
Chairman and
CEO report
+10YOY
+32YOY
$345.9m
We are pleased to present New Zealand Media
and Entertainment’s Annual Report for the year
ended 31 December 2024
OneRoof digital
listing revenue
Digital audio
revenue
Digital subscription
revenue
Total operating revenue
up 2% YOY
%
%
+51YOY%
6 NEW ZEALAND MEDIA AND ENTERTAINMENT
delivering value for agents and
audiences into the future whilst
also expanding on its current
product offering to open up
further revenue opportunities.
We continue to invest in news and
journalism with quality and trust a
top priority, ensuring we are giving
different perspectives on issues
and offering a broad spectrum of
opinion. We constantly innovate
with automation technology
allowing us to auto-curate
and offer increased reader
personalisation, improving
audience engagement and
revenue generation capabilities.
In our audio division we
outperform our competitors in
the digital audio space, growing
our digital audio revenue as well
as podcast and digital radio
streaming revenue.
Given the difficult trading
environment our focus on
product profitability and
simplifying our business was
critical to the company remaining
strong and profitable.
Financial Results – highlights
NZME’s operating EBITDA was
$54.2 million in 2024, which
was $2 million lower than 2023
reflecting difficult trading in the
second and third quarters of the
year. However, this was a solid
result given the challenging
trading environment.
Statutory net loss after tax was
$16.0 million after a $24 million
non-cash impairment of intangible
assets. Operating earnings per
share was 6.5 cents per share.
Despite challenging economic
conditions continuing to impact
the media industry with continued
weaker demand in advertising,
NZME lifted its Operating Revenue
for the year to $345.9 million, up
2% from $340.8 million in 2023.
Cash flow from operations was
$11.3 million, reflecting lower
earnings and a higher capital
spend for the year.
We continue to focus on our digital
transformation strategy, which has
led to digital revenues now making
up 31% of our total revenue.
Our balance sheet remains strong
with net debt in the middle of our
target leverage ratio range.
Key achievements
As New Zealand’s largest multi-
media company NZME continues
to reach nine in every ten Kiwis1,
with large scale audiences
engaging with its brands across
Audio, Publishing and OneRoof.
2.5 million Kiwis2 turn to NZME’s
digital platforms each month
alone, and combined with
our terrestrial audio and print
publications, having an audience
of 3.5 million people2 across
the country is a phenomenal
achievement. Nevertheless, we
are focused on driving further
audience growth as we strive
to reach more people across
different demographics to deliver
growth in share both from an
audience perspective but also
in our share of revenue.
Scalable digital audience
and advertising news platform
Expert journalism that
grows subscriber
lifetime value
High quality and efficient
print business
New Zealand’s
leading news
destination
Create the most
listened to and
loved content
Deliver customer
solutions to grow
revenue shares
Grow podcast
engagement
and monetisation
Number One in Audio
Superior listings
experience
and performance
Grow
listings
revenue
Accelerate
non-listings
product revenue
Your essential property platform
We continue to invest in news and
journalism with quality and trust a
top priority, ensuring we are giving
different perspectives on issues and
offering a broad spectrum of opinion.
ANNUAL REPORT 2024 7
STRATEGIC FOCUS
Your Essential
Property Platform
NZME’s OneRoof division’s
strategic priorities are:
•
Delivering a superior listings
experience and performance
•
Growing listings revenue
•
Accelerating our non-listings
portfolio
OneRoof has been a standout
performer, reporting positive
EBITDA of $2.7 million compared
to an EBITDA loss in 2023.
OneRoof grew listings enquiries
by 32% year on year and overtook
its nearest competitor to become
number one for online web
audience3 for the first time. This
is a remarkable achievement
and demonstrates the continued
strength and potential of OneRoof
and its ability to be your essential
property platform.
Further adding to its continued
growth in digital audience,
OneRoof’s digital revenue has
increased by 51% and now makes
up 61% of OneRoof’s total revenue
– up from 54% in 2023. OneRoof
has also increased its listing
upgrades with 43% of listings
upgraded in Auckland in 2024
– up 2% from 2023, with 24% of
listings upgraded for the rest of
New Zealand (up from 17%).
OneRoof’s print publications have
also performed extremely well,
with print revenue growing by
10% year on year.
We are also focused on other
key opportunities within the real
estate sector including retirement,
rental and commercial property
listings, with plans to grow in these
areas as the real estate market
strengthens in 2025.
OneRoof’s strong growth across
the year, despite the real estate
market recovering at a slower
rate than previously expected,
demonstrates the value agents,
vendors and advertisers are
continuing to see in OneRoof.
The fact OneRoof can enable an
integrated advertising offering
across multiple platforms, thanks
to NZME’s ecosystem of multiple
channels including audio and
publishing, is a strong point
of difference other real estate
platforms cannot offer agents
and vendors.
In November 2024, along with
Tella, we launched a new digital
home loans portal allowing
people to apply for home loans
directly from the OneRoof
website. The portal sees
OneRoof broadening its offering,
meaning Kiwis can now use the
platform to see out their entire
property journey from start to
finish. This helps simplify the
property buying process for
home buyers, homeowners and
investors, providing a quality user
experience and opening the door
to a new era of property purchase
and investment in New Zealand.
Number One in Audio
NZME’s Audio division’s strategic
priorities are:
•
Creating the most listened
to and loved content
•
Delivering customer solutions
to grow revenue share
•
Growing podcast
engagement and
monetisation
NZME’s digital audio performance
has been particularly strong, with
digital audio revenue reaching
$10.8 million - a 32% increase on
the previous year’s $8.3 million.
Podcasts have continued to be
a key growth driver for NZME
growing revenue by 67% year on
year, while digital radio streaming
revenue has increased by 19%
over the same period.
Broadcast radio revenue
remained flat on last year which
was pleasing given the market
declined slightly year on year.
We are focused on priority radio
brands to grow our share of
audience in the valuable 25-54
age demographic and growing
our revenue share in market.
OneRoof grew listings enquiries by 32% year on year and overtook its nearest
competitor to become number one for online web audience3 for the first time.
OneRoof has been a standout performer,
reporting positive EBITDA of $2.7 million.
1 NZME Reach Study, n=1000 nationally representative (Jan 2024 unduplicated audience across NZME print, digital, radio &
podcasts). 2 Nielsen CMI Q4 23 - Q3 24 Dec 24 Fused AP15+. *Monthly coverage for Daily & Weekend Sun titles, weekly coverage
for Newspaper Inserted Magazines, monthly UA for Digital, weekly reach for Radio (GfK RAM S2 24). Note: Fused data has
potential for duplication. 3 Nielsen Online Ratings December 2024 (desktop, mobile web and domestic traffic only, does not
include exclusive mobile app audience) 4 GfK RAM, S1 2017 - 2024, Total NZ, M-S 12mn-12mn, AP10+, Share % (historical data
available upon request) 5 GfK RAM, S3 2024, Total NZ, M-F 6am-9am, AP10+, Cume.
8 NEW ZEALAND MEDIA AND ENTERTAINMENT
NZME maintained its strong
market position in broadcasting
throughout the year, with
Newstalk ZB continuing to
lead as New Zealand's premier
commercial radio station4.
The company demonstrated
particular strength in breakfast
programming, securing the
country's top two breakfast shows
with Mike Hosking on Newstalk
ZB and the ZM team of Fletch,
Vaughan and Hayley ranking first
and second respectively5.
The company's excellence
in broadcasting was further
recognised at the 2024 New
Zealand Radio and Podcast
Awards, where NZME dominated
the premier category, claiming
seven out of ten awards. Notable
victories included Newstalk
ZB's Network Station of the Year
award, ZM's Fletch, Vaughan and
Hayley securing Network Music
Breakfast Show honours and Tom
Sainsbury's Small Town Scandal
being named Podcast of the Year.
As our digital audio offering
grows, we’ve also looked at ways
to further expand our advertising
opportunities including by
consolidating our streaming and
ad-serving infrastructure. This
has enhanced our advertising
capabilities, enabling more
precise targeting through
improved data analytics and the
integration of first and third party
data across a unified digital audio
inventory.
The strong talent offering we
have at NZME, as well as our
in-house resource, allows us to
differentiate our podcast offering
from our competitors, using
our own talent where possible
and our own studio facilities,
production technology and teams
to ensure podcasting remains a
cost effective, revenue generating
platform now and into the future.
ANNUAL REPORT 2024 9
New Zealand’s Leading
News Destination
NZME’s Publishing division’s
strategic priorities are:
•
Scalable digital audience and
advertising news platform
•
Expert journalism that grows
subscriber lifetime value
•
High quality and efficient
print business
Our digital subscription business
demonstrated resilience in a
challenging market, achieving
notable growth in both
volume and revenue. Digital
subscriptions revenue grew 10%
compared to 2023, to $22.6
million. The introduction of
enhanced paywall functionality
and other capabilities enabled
more sophisticated targeting
and segmentation, driving
subscription volume while
increasing average revenue
per user through strategic
bundle offerings.
2024 was a year of significant
expansion and digital
transformation for our
newsrooms. At the end of
2024, NZME sold or closed 14
of its community newspaper
publications due to the poor
profitability of the network. NZME
strengthened its North Island
presence through the strategic
acquisition of Gisborne Herald
and Sun Media in Bay of Plenty,
expanding our local and regional
journalism footprint.
Our commitment to digital
innovation was further
demonstrated by significant
innovation and modernisation
of our digital ecosystem.
This was highlighted by
the implementation of new
automation technology to auto-
curate and personalise features
on the NZ Herald homepage,
which was further supported by a
comprehensive website redesign.
These improvements have
significantly enhanced audience
engagement and revenue
generation capabilities.
The newsroom underwent a
transformative shift to a truly
digital-first model, supported
by new data tools and a new
editorial automated technology
tool, First Look, to help edit
article copy before it has human
oversight. This has measurably
improved both productivity and
content quality in the newsroom.
Our dedication to excellence in
journalism received international
recognition, with multiple
prestigious accolades including
the International News Media
Award for Best Use of Print for
our Cyclone Gabrielle: Special
Free Edition, the Voyager Media
Award for Newspaper of the Year
awarded to Hawke's Bay Today,
and the IAB NZ Award for Media
Publisher of the Year.
Our digital subscription business
demonstrated resilience in a challenging
market, achieving notable growth in both
volume and revenue.
10 NEW ZEALAND MEDIA AND ENTERTAINMENT
Michael Boggs
Chief Executive Officer
Barbara Chapman
Chairman
Strategic focus areas
With a strong digital transformation
strategy at the heart of our
business, NZME also has three
significant new areas of focus
to drive success.
1. OneRoof value realisation
OneRoof continues to be a
very strong performer and one
with significant future growth
potential. In order to continue to
accelerate its growth and realise
its full potential in delivering
value for shareholders we have
commenced an independent
strategic review of OneRoof
which would look at a number
of opportunities including:
•
The potential separation of
OneRoof to enable raising
external capital, either
public or private, to surface
its value
•
Looking at potential pathways
to value recognition and
monetisation
•
Consolidation opportunities
for OneRoof
•
Additional resourcing
and extra capacity
opportunities to accelerate
OneRoof’s growth
A progress update on this
independent review will
be provided at NZME’s half
year results.
2. Governance
– additional specialists
With digital transformation at
the heart of NZME’s overarching
strategy, the NZME Board is
seeking a new member with
experience in digital acceleration
to further complement the vast
experience and skills of the
current Board.
A new OneRoof Board will also
be implemented this year which
will include the appointment of a
property marketplace specialist.
3. Setting a new tone
for New Zealand
NZME will also focus on taking a
leadership position to help New
Zealand thrive, using its various
platforms including the NZ
Herald to support the reboot and
acceleration of New Zealand’s
economic recovery, sharing
stories of success and building
positive momentum.
This is in line with the company’s
commitment to keeping Kiwis in the
know and connecting communities
by facilitating conversations about
the topics that matter.
Capital Management
The Board and management is
focused on creating shareholder
value and the company is pleased
to have made distributions to
shareholders over the past year
of $16.8 million comprising of:
•
2023 final dividend of
6 cents per share
•
2024 Interim dividend
of 3 cents per share.
Net debt finished the year at
$24.1 million which was higher
than last year but remains in
the middle of our target leverage
ratio range.
Despite the difficult trading
environment and lower profitability
for 2024, the strong capital position
enables NZME to deliver a final
dividend in line with last year.
We expect lower capital investment
in 2025. However, we will assess
opportunities that may become
available to increase earnings
and shareholder value from time
to time.
Outlook
The beginning of 2025 has
started well delivering anticipated
advertising revenue growth of 4%
for the first quarter of 2025 after
adjusting for the recent exit of
community newspapers.
OneRoof has continued its strong
audience performance into 2025
and is delivering year on year
digital revenue growth of 30%
across January and February 2025.
Given the revenue growth to
date and our focus on cost
control, subject to the continuing
improvement in market advertising
demand, we expect to deliver
improved operating results
during 2025.
Conclusion
We are committed to advancing
our market position through
continual innovation, expanding
our offering to enrich audience
experiences, deepening
engagement and enhancing
advertiser value.
Despite market challenges in
2024, NZME's resilient team of
1,200 people from Kaitaia to Bluff
delivered a strong performance
through their unwavering
dedication and adaptability.
Thank you to each and every
one of you for your efforts.
We extend our sincere
appreciation also to the NZME
Board and Executive team for their
strategic guidance throughout the
year. Your deep understanding
of our industry, along with your
innovative approach to addressing
challenges, has strengthened our
position as New Zealand’s top
multi-media company, laying a
solid foundation for future growth.
Of course, NZME’s success stems
from the collective support of
many: our talented team of 1200
people up and down the country,
our engaged audience of
3.5 million Kiwis, our loyal
advertising customers and
agency partners and our
committed shareholders. Thank
you for your continued support.
ANNUAL REPORT 2024 11
Financial Results
NZME has reported a Statutory Net Loss After
Tax for 2024 of $16.0 million, which includes an
impairment of intangible assets of $24 million.
In 2023, the company reported a Net Profit After
Tax of $12.2 million.
Operating EBITDA 1 was $54.2 million in 2024
which was 4% below last year’s $56.2 million.
Operating Revenue 1 was $345.9 million in 2024
which was 2% higher than the 2023 operating
revenue of $340.8 million.
Operating Expenses were 2% higher at $296.0 million,
due to:
•
People costs were 1% higher than 2023 with
additional roles from the Gisborne Herald
and Sun Media publications, and inflationary
pressure on salaries and wages, somewhat offset
by improved efficiencies.
•
Print and Distribution costs were 2% higher year
on year due to increased delivery costs and
higher materials costs due to a larger portion of
the volume being premium quality. Overall print
volumes were similar with increased OneRoof
and third party print volumes, combined with the
addition of the Gisborne Herald and Sun Media
publications, offsetting reduced volumes
across other print publications.
•
Selling and Marketing costs were 9% higher than
2023 relating to higher agency commission as a
result of a higher portion of revenue through the
channel together with increased selling costs
associated with the revenue growth of OneRoof.
•
Content costs were 8% higher due to increased
activity and licence costs.
•
Third party fulfilment costs were 27% lower as
a result of a significant reduction in the amount
of digital performance marketing sold onto third
party platforms.
Following the company’s annual review of the
carrying value of intangible assets an impairment of
Publishing unit’s intangible assets of $24 million has
been recognised in the income statement.
NZME’s Operating NPAT for 2024 was $12.1 million,
resulting in an operating earnings per share of 6.5 cents,
compared with 7.7 cents in 2023.
Balance Sheet and Cash Flow
Net debt increased by $6.1 million to $24.1 million at
31 December 2024, with lower operating cash flows
and higher capital expenditure, while distributions
to shareholders remained flat.
Net working capital excluding cash increased by
$1.4 million largely as a result of higher receivables
at the end of the year. Lower paper stock inventories
were offset by end of year tax receivable balance
compared to a small payable as at 31 December 2023.
Plant, property and equipment, intangibles
and other non-current assets decreased due to
depreciation and amortisation exceeding capital
expenditure and the impairment charge processed.
Right of Use assets reduced in line with the
reduction in lease liabilities as the term reduces.
Cashflow from operations for the year was
$37.9 million, which is lower than 2023 due
to lower operating earnings, as well as an increase
in non-recurring expenses.
Capital expenditure was $12.7 million, an increase
on 2023 levels with accelerated development of key
digital products for both OneRoof and Publishing.
Financial
commentary
1 Operating results presented are non-GAAP measures that include the impact of NZ IFRS 16, however, exclude exceptional
items to allow for a like for like comparison between 2023 and 2024 financial years. Please refer to pages 50 - 51 of the 2024
Full Year Results Presentation for a detailed reconciliation.
12 NEW ZEALAND MEDIA AND ENTERTAINMENT
The OneRoof division includes the OneRoof digital
property platform together with all of NZME’s
dedicated real estate print publications.
Total OneRoof revenue was $27.2 million for 2024,
an increase of 31% year on year. Underpinning this
was 51% growth in digital revenue, significantly
outpacing the real estate market recovery with
new listings growth of 20%, and delivered through
continued gains in listings upgrades, along with
average yield improvements. Print revenue also
benefited from a recovering market, with year on
year growth of 10%.
OneRoof is delivering on its potential, with leading
audience engagement, a proven growth trajectory
and significant opportunity from further market
growth, listings upgrades and yield potential.
OneRoof listings upgrade %2
New market listings (000's)1
OneRoof
OneRoof average yield ($)2
0
100
200
300
400
500
Auckland
Rest of NZ
2022
2023
2024
Auckland
-
10%
20%
30%
40%
50%
Rest of NZ
2022
2023
2024
110.128
0
20
40
60
80
100
120
140
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
1 REINZ and Tony Alexander (NZ economist, www.tonyalexander.nz). 2 NZME Analysis
ANNUAL REPORT 2024 13
Audio
Podcast downloaded hours (million)1
2022
2023
2024
15
21
18
Podcast share of digital audio revenue
0.3393780
44
18%
27%
34%
2022
2023
2024
The audio division encompasses NZME’s radio
brands, digital audio platform iHeartRadio, and
the NZME Podcast Network which is the leading
podcast net work in New Zealand.
Total audio revenue for the year was $116.6 million,
a 3% improvement on last year with digital audio
revenue increasing by 32% to $10.8 million.
NZME has increased total audio revenue market
share to 44.6% year on year, versus an audience
share of 36.6%. A small reduction in audience
share recently has seen consumers moving
to less ad-accessible channels, yet NZME has
been very successful in driving impact with
market-leading audio personalities and a
powerful omnichannel portfolio.
1 Triton Podcast Metrics NZ January 2022 - December 2024
14 NEW ZEALAND MEDIA AND ENTERTAINMENT
The Publishing division includes NZME’s market
leading digital news and journalism products,
encompassing NZ Herald and BusinessDesk
together with its print publications.
Total publishing revenue for the year was
$203.8 million, which was 3% lower than 2023.
Total reader revenue was flat year on year, with
digital subscription revenue growth of 10%
offsetting lower print subscriber and retail outlet
sales. Digital-only subscriptions increased by
16% to 151,000, contributing to total publishing
subscriptions of 236,000, up from 222,000
at the end of 2023.
Publishing advertising revenue of $106.4 million
was down 4% compared to last year, with print
advertising down 4%, while digital advertising
decreased by 3%. Lower total digital advertising
revenue was driven by a 25% reduction in low
value revenue sold on to third party networks,
with 4% growth in core digital products despite
a challenging market.
Publishing
Digital subscriptions
0
50
100
150
200
0
25
50
75
100
125
Dec 21
Mar 22
Jun 22
Annual $ per subsciber (yield)
# of subscirbers (000s)
Individual subscribers
Corporate subscribers
Individual yield
Corporate yield
Sep 22
Dec 22
Mar 23
Jun 23
Sep 23
Dec 23
Mar 24
Jun 24
Sep 24
Dec 24
Dec 21
225
200
175
150
125
100
75
50
25
-
Mar 22
Jun 22
Sep 22
Dec 22
Mar 23
Jun 23
Sep 23
Dec 23
Mar 24
Jun 24
Sep 24
Dec 24
Print only
Digital Entilted
Digital only
Subscriber mix (000's)
ANNUAL REPORT 2024 15
Our
sustainability
commitment
At New Zealand Media and Entertainment (NZME),
we're more than just headlines and broadcasts
– we're an integral part of the daily lives of Kiwis.
Whether it's Mike Hosking's Newstalk ZB Breakfast
Show or the latest breaking story on the New
Zealand Herald, we're committed to getting
the real story to real people. We embrace our
responsibility to support communities, empower
our people, protect the environment, and keep
Kiwis in the know.
2024 marks a turning point in how we're tackling
our environmental impact. We've set refreshed
targets, backed by robust data and practical
actions. You'll find our climate-related disclosures
and progress from page 27.
Every day we connect with more than 3.5 million
New Zealanders across our brands including
NZ Herald, The Hits radio network, our digital
audio platform iHeartRadio and our OneRoof
property platform. Our position as a leading
media organisation demands we deliver balanced,
trustworthy, and entertaining content that
reflects our diverse communities and facilitates
conversations that matter most to Kiwis.
Our workplace culture emphasises innovation,
diversity, inclusion, and engagement. By fostering
a safe and engaging work environment, we nurture
and retain the exceptional talent driving NZME
forward. We're proud that 51% of our leaders are
women and we acknowledge there remains more
work ahead in other areas of diversity.
Climate change isn't just something we report
on – it's a challenge we're actively tackling.
Our company car fleet is now 39% hybrid and
we achieved a 15.1% reduction in our Scope 1
emissions and a 5.4% reduction in our Scope 2
emissions, compared to 2022 (our base year).
By 2032, we are aiming to cut our carbon emissions
across NZME by 50.4% as we commit to being
part of the climate change solution.
NZME's sustainability commitment creates
long-term value for our employees, customers,
audiences, and shareholders while contributing to
a more sustainable future for all New Zealanders.
We are committed to protecting the craft of journalism and broadcasting to keep Kiwis in the know.
Our People
Our Communities
Our Environment
We connect and empower
our communities
We provide a workplace that fosters
innovation, engagement and inclusion
We accelerate awareness and drive meaningful
action on environmental issues
Promoting a
healthy, diverse
and safe workplace
Championing the craft
and developing
our people
Reduce and
mitigate our
impact
Grow
connection and
engagement
Responsible
reporting and
broadcasting
Connecting
communities
NZME’s sustainability programme is aligned to the guidelines set out in the UN Sustainable Development Goals
- an international blueprint to achieve a better and more sustainable future for everyone.
16 NEW ZEALAND MEDIA AND ENTERTAINMENT
CASE STUDY:
Breast Cancer Cure (The Hits Dunedin)
Taking place in the heart of Dunedin, Callum & P from The Hits
walked around the local iconic Octagon for 600 minutes
raising funds for Breast Cancer Cure (BCC) and raised awareness
for more than 600 lives lost each year to the disease in
New Zealand. With a goal to raise $10,000 to assist Breast
Cancer Cure in conducting their research into finding a cure,
Callum & P exceeded expectations and raised $28,000.
CASE STUDY:
Salvation Army (The Hits Rotorua)
The Hits Rotorua's annual Fill the Bus campaign has been running
for 10 years and 2024 was another huge success with more than
10,500 food donations donated to the Rotorua Salvation Army
foodbank. This event has helped many people over the years
going through hardship - especially at Christmas. The event is
always a highlight of the Rotorua Daily Post’s six-week Christmas
appeal, which hit $100,000
in donations for the first
time this year.
CASE STUDY:
Tauranga Food Bank (The Hits Tauranga)
The 2024 Bay of Plenty Times Christmas
Appeal was a record-breaker, raising more
than $300,000 in cash and food donations
for the Tauranga Community Foodbank.
It was a combined effort between the
BOP Times, The Hits Tauranga and
Sun Media teams.
CASE STUDY:
KidsCan
The Hits radio hosts Jono Pryor and
Ben Boyce, along with ‘How to Dad’
Jordan Watson, completed a non-stop,
24-hour handball challenge to raise
money for charity KidsCan. They
exceeded their $350,000 goal,
raising $474,221 for the cause.
ANNUAL REPORT 2024 17
Our
communities
NZME is deeply involved in our communities.
As one of New Zealand’s largest media companies
we facilitate conversations about the topics that
matter to Kiwis and we continue to partner with
charitable organisations throughout the year.
We are proud to provide quality, trusted, diverse
and balanced journalism and entertainment right
across our platforms.
We connect and empower our communities.
CASE STUDY:
Paralympics New Zealand media partnership
We were proud to partner with Paralympics New Zealand as a media partner for the Paris 2024 Paralympic Games.
Through this partnership, we supported the New Zealand Paralympic team, raising awareness of their athletes’
inspiring journeys. Newstalk ZB and NZ Herald became the official radio and print/digital partners, giving audiences
comprehensive and entertaining coverage of athletes’ campaigns. This collaboration allowed us to highlight the
resilience and achievements of our Kiwi Paralympians, bringing their inspiring stories to all New Zealanders and
raising the team's profile.
Proudly Supported by
18 NEW ZEALAND MEDIA AND ENTERTAINMENT
Initiative
Progress
Responsible reporting
and broadcasting
Through best practice
broadcasting and journalism,
we will provide a diverse and
balanced reporting platform,
promoting the law and holding
the powerful to account.
Where justified in the interests of freedom of expression, open justice and holding
the powerful to account, NZME invests in legal challenges including by opposing
applications for suppression and takedown orders and attempts to prevent access
to court files. In 2024, NZME invested in 17 legal challenges, including opposing
applications for suppression and takedown orders in the High Court, appealing
suppression orders to the Court of Appeal and appearing in an appeal before the
Supreme Court. In addition, NZME’s journalists routinely oppose applications for
orders which attempt to restrain the media’s ability to cover court proceedings.
In 2024, NZME continued with its Open Justice Project, through which NZME
received funding for court reporting through New Zealand On Air’s Public Interest
Journalism Fund.
NZME strives to adhere to our Editorial Code of Ethics and the principles and
standards of the NZ Media Council and the Broadcasting Standards Authority (BSA).
Regulator
Number of Upholds
2023
2024
BSA
1
1
Media Council
0
7
Connecting communities
We are deeply involved in our
communities and as one of
New Zealand’s largest media
platforms we will facilitate
conversations about the topics
that matter to Kiwis.
We are committed to our regional communities through the presence of local
journalists and broadcasters, employing 525 journalists and broadcasters
nationwide.
In 2024 NZME acquired Tauranga’s SunMedia print and digital platforms and the
Gisborne Herald publishing assets, further highlighting its commitment to news
in regional communities.
We increased diversity of content and contributors across our platforms
in 2024 including:
•
NZ Herald Talanoa – Voices of the Pacific – promoting greater awareness
and appreciation of Pacific cultures.
•
NZ Herald Kahu – comprehensive insights in matters significant to Māori
that foster a deeper understanding of Māori heritage and contemporary
experiences within NZ society.
•
M9 - supporting the showcase of unique perspectives in celebration
of events such as Te Matatini, Matariki and Te Wiki o Te Reo Māori.
•
Kea Kids News – news made for kids, by kids, hosted on nzherald.co.nz.
•
NZME continued its media partnership with Tātaki Auckland Unlimited across
major summer cultural festivals including Lantern Festival and Pasifika.
•
In 2024, we launched Korero - a dynamic educational podcast celebrating
the richness and diversity of Māori culture in Aotearoa, presented by a trio of
passionate Māori creatives, including Luke Bird, Marcia Hopa, and Phoenix Ruka.
•
Paralympics New Zealand (PNZ) media partnership - “We’ll give you something
to talk about”.
In 2024 we have championed and supported charitable causes,
providing support to:
MusicHelps, KidsCan, Diabetes NZ, Women’s Refuge (Shielded Initiative),
Salvation Army (The Hits Rotorua), Tauranga Food Bank, Breast Cancer Cure,
Kindness Collective Joy Store, A Day in Loo Number Two, The ACC presents
Mindsets with Movember, Daffodil Day.
ANNUAL REPORT 2024 19
CASE STUDY:
Kōrero Podcast
In 2024, we launched Kōrero
- a dynamic educational podcast
celebrating the richness and
diversity of Māori culture in
Aotearoa, presented by a trio
of passionate Māori creatives,
including Luke Bird, Marcia Hopa,
and Phoenix Ruka.
CASE STUDY:
Hope is Real
Off the back of two successful
seasons, mental health advocate
and influencer, Jazz Thornton,
returned for a much-anticipated
third season of her Hope Is Real
podcast. The podcast focused on
championing the strength in being
neurodiverse, fostering unfiltered,
open discussions about mental health
issues. NZME is committed to providing
its audience with diverse content, which
can also serve as beneficial resources
for communities.
20 NEW ZEALAND MEDIA AND ENTERTAINMENT
CASE STUDY:
Rural Communities - Celebrating 30 Years of The Country
A moment of Kiwi broadcasting history as NZME’s flagship rural radio show
The Country with Jamie Mackay celebrated 30 years on air. Broadcasting
across several NZME radio stations including Newstalk ZB, GOLD SPORT,
Hokonui, and digital audio platform iHeartRadio, The Country has become
a must-listen for farmers nationwide. Mackay was awarded an Officer
of the New Zealand Order of Merit for his services to broadcasting
and the rural community in this year’s King’s Birthday Honours.
CASE STUDY:
Daffodil Day
NZME teamed up with ANZ on Daffodil Day in August
to host a special live broadcast event led by ZM
and iHeartRadio, featuring star-studded live music
performances, special guest appearances and epic
fundraising activity for the Cancer Society as part of
the country’s first ever live Donation Station.
CASE STUDY:
A Day in Loo Number 2
For the second year, the
team at Radio Hauraki raised
awareness and funds for
Bowel Cancer Awareness
Month in June with a 12-hour-
long, live broadcast dubbed
‘Day in Loo Number Two’.
The broadcast included
live performances by
several Kiwi musicians and
interviews with well-known
New Zealanders.
ANNUAL REPORT 2024 21
Our
people
NZME is committed to being an employer of
choice. In 2024 we finished the year with an
Employee Net Promoter Score within the top 5%
percent of consumer media businesses globally.
Through the work of NZME’s Diversity and Inclusion
pou (pillars), NZME continues to deliver a calendar
of events and initiatives to foster inclusion.
Key activity in 2024 included introducing Executive
sponsors for each of the five pou - Tangata Whenua
and Pasifika, Cultural Diversity, Gender Equality,
Rainbow Diversity, Mental Health, Wellbeing,
Lifestages and Neurodiversity, as well as refreshing
our pou membership and purpose.
We maintained our Rainbow Tick accreditation for
2024, awarded to organisations that are making
their workplace a safe environment for everyone,
regardless of sexual orientation. We also launched
neurodiversity guidelines to help our neurodiverse
team members understand the support structures
available to them and equip our leaders with
essential information on creating neurodiverse-
friendly working environments.
We provide a workplace that fosters
innovation, engagement, and inclusion.
FULL TIME
75%
PART TIME
10%
CASUAL
12%
CONTRACTOR
3%
Contract type
45-54
20%
55-64
16%
<24
10%
35-44
24%
65+
6%
25-34
24%
Age group
22 NEW ZEALAND MEDIA AND ENTERTAINMENT
300 FTE
200 FTE
100 FTE
0
< 1 Y
3 - 5 Y
6 - 10 Y
21 - 30 Y
31 Y +
11 - 20 Y
1 -2 Y
Length of service (years)
Middle Eastern / Latin American / African
Chinese
European
Indian
Māori
Undeclared
Other Ethnicity
Other Asian
Pacific Peoples
67%
8%
9%
5%
3%
3%
3%
2%
1%
Ethnicity
55%
45%
51%
49%
25%
75%
60%
40%
F
M
People
Leaders
Executive
Board
Staff
Gender / level
CASE STUDY:
Katie Macdiarmid appointed to
Chief Information Officer
In September 2024, NZME appointed Katie Macdiarmid
as Chief Information Officer. Katie has more than
25 years of experience in digital and technology
roles across multiple industries including media
and telecommunications in the United Kingdom
and New Zealand. She has completed an MBA
with distinction, and a thesis on how disruptive
technologies can transform industries. She has
been at NZME since 2017 and held the role of GM
Digital Products at NZME for the past four years,
leading NZME’s digital product and development
teams and operating model.
CASE STUDY:
The front page podcast
appoints Chelsea Daniels
as new host
The Front Page appointed former
Newstalk ZB news director,
Chelsea Daniels, as its new
host and senior reporter. The
Front Page is the New Zealand
Herald’s daily news podcast,
delivering insightful analysis on
the most significant news stories
each weekday. Daniels brings
many years of broadcasting
experience, having covered
some of the country’s most
significant news stories over
the past decade. She started
her broadcasting career at CTV
in Christchurch, later moving
to senior reporter and news
director roles for Newstalk ZB
in Auckland.
ANNUAL REPORT 2024 23
Continued
Our people
Initiative
Progress
Promoting a healthy, diverse and
safe workplace
We are committed to embedding a
high performing health and safety
culture, regularly reporting on our
performance, and implementing
the recommendations from an
independent health and safety
audit. We strive for a collaborative
and welcoming place to work that
celebrates diversity. We adopt and
strengthen policies for the promotion
of gender equality.
Additional focus was given to enhancing health and safety communication and
engagement across the business to ensure health, safety, and wellbeing objectives
were on par with commercial objectives. This positively influenced our health and
wellbeing engagement survey results, achieving an eNPS score of +24, a 2-point
increase compared to the previous survey conducted in 2022 and we are committed
to continual improvement in this area.
Additionally, engagement with contractors is underway regarding the introduction
of a new online pre-qualification process incorporating sustainability assessments
alongside health and safety criteria.
Each of our Diversity and Inclusion pou delivered a calendar of events and
initiatives in 2024 including:
•
Lunar/Chinese New Year celebrations
•
International Women’s Day
•
New Zealand Sign Language Week
•
Pink Shirt Day
•
International Day against Transphobia and Homophobia
•
Matariki celebrations
•
Te Wiki o te Reo Māori (Māori language week)
•
NZ Mental Health Week awareness
•
NZME Wellness Week
•
Diwali celebrations.
NZME supports initiatives that reduce the gender pay gap and eliminate gender
inequities across the business. Relevant data points are closely monitored across
the business to hold leaders accountable and ensure continued progress with
diversity, inclusion and reducing inequities.
We are striving for diversity at Board, Executive and People Leader levels.
In 2024, for gender, we have at Board level F60%:M40% (2023: F60%:M40%),
at Executive level F25%:M75% (2023: F43%:M57%) and for our People Leaders
F51%:M49% (2023: F48%:M52%).
At Board level for ethnicity, all members identify as European (2023: all members
identified as European) and at Executive level 12.5% identifying as Chinese and
87.5% as European (2023: 14% identifying as Chinese and 86% as European), and
for our People Leaders we have 8.1% (2023: 85.3%) European, 8.1% (2023: 7.8%)
Māori, 4.9% (2023: 3.5%) Indian, Chinese 0.9% (2023: 1.3%) and 3.0%
(2023: 2.1%) identifying as other ethnicities.
NZME supports flexible working for diverse needs and/or
shared responsibility in the household.
CASE STUDY:
Madison Reidy makes 2024 Forbes 30 under 30 Asia list
NZ Herald business journalist, Madison Reidy, was the sole New Zealander to
make the media category in the Forbes 30 Under 30 Asia List 2024. Reidy was
nominated for the media, marketing and advertising category which honours the
brightest young entrepreneurs and leaders. Reidy joined NZME in 2022 and hosts
NZ Herald’s investment video show and podcast Markets with Madison. The twice-
weekly show garnered more than 2 million views in 2024.
24 NEW ZEALAND MEDIA AND ENTERTAINMENT
CASE STUDY:
BusinessDesk announces appointment of Victoria Young as editor
Victoria Young was appointed editor of BusinessDesk in March 2024.
With a professional career spanning New Zealand, Singapore, and
London, Victoria Young has been with BusinessDesk since 2019,
initially as a senior reporter before taking on the role of investigations
editor in 2022. She has been instrumental in BusinessDesk growing
as New Zealand’s premium business news brand.
Initiative
Progress
Championing the craft
We will ensure we are mentoring
the next generation of journalists
and broadcasters. We will develop
our people to maintain and grow
the craft.
In 2024, NZME made significant strides in empowering our workforce through
strategic AI adoption and comprehensive training initiatives. We've democratised
access to AI tools across the organisation, providing all staff with essential
resources like Co-Pilot Browsing Assistant, while implementing specialised AI
solutions across key departments including sound production, commercial
content, marketing, editorial, and engineering teams. Through structured training
programs and our AI Hub's continuous evaluation of technology partners, we've
observed improvements in productivity and output quality, with successful
graduates from the Section AI-MBA program leading our transformation across
multiple value streams.
In 2024, journalists in NZME's newsroom collectively completed a total of
240 hours of health, safety and security training. This included a particular
emphasis on Broadcasting Standards Authority (BSA) training in response
to updated codes. The training was made widely accessible to all staff.
Our commercial team rolled out a comprehensive training and development
programme to uplift the capability of our sales managers and media specialists.
This programme identified the core competencies needed for success, provided
tailored learning solutions to help our people grow and learn and offered
ongoing coaching for our sales leaders.
Refer to page 48 for our Awards list celebrating the talent and commitment
of our people.
CASE STUDY:
Sarah Catran appointed as head of digital audio
Sarah Catran, who won Gold at the 2022 IAB Awards for Digital
Audio Sales Excellence, has close to 25 years of media industry
experience in New Zealand and the United Kingdom and
has been with NZME since 2005, working in commercial
and content roles across its radio, print and digital
divisions. In her most recent role as GM Podcast
Commercial and Partnerships she was responsible
for leading NZME’s audience-centric approach
to advertising across its highly successful
podcast network. She was appointed as
Head of Digital Audio in May 2024.
ANNUAL REPORT 2024 25
Our
environment
NZME is committed to operating sustainably
and to minimising our environmental footprint,
transitioning to a low carbon, climate resilient
future. In 2023, NZME commenced reporting
through the new climate-related disclosure
framework as prepared by the External Reporting
Board (XRB) and our full disclosure can be found
on pages 27 - 46.
Reduce and mitigate our impact
We are addressing our environmental
risks and opportunities by reducing
and mitigating the impact of
our products and processes,
collaborating with our suppliers
on the solutions and disclosing
our performance.
Grow connection and engagement
We facilitate/accelerate environmental
awareness and engagement by
presenting the facts across our
media platforms and by cutting the
jargon to make it easier for people to
understand environmental issues and
take meaningful action.
NZME uses its many platforms to cover
environmental issues impacting New
Zealanders including carbon emissions,
weather events, and climate change.
We accelerate awareness and drive
meaningful action on environmental issues.
CASE STUDY:
Toitu Certification
NZME’s print operations in Ellerslie,
Auckland were awarded the Toitu
Enviromark Gold certification. NZME
has attained gold level certification
since 2011.
CASE STUDY:
Liam Patterns Newsprint Supply
New Zealand fashion house, Ruby, utilises end-of-roll newsprint
from The New Zealand Herald print plant for patterns for their
clothing ranges. Ruby uses around 50 – 60 metres from each
newsprint roll to create 18 – 20 Liam patterns.
26 NEW ZEALAND MEDIA AND ENTERTAINMENT
INTRODUCTION
As one of New Zealand's largest media
companies, we have a unique opportunity to
shape public awareness and drive informed
discussions on climate-related issues. Our
responsibility goes beyond delivering the news
—it includes actively enhancing understanding
of climate change, championing sustainable
practices, and inspiring positive action through
our own examples.
Our role in supporting New Zealand's transition
to a low carbon economy focuses on reducing
and mitigating our impact, addressing our
climate risks and opportunities, and
accelerating Kiwi awareness and engagement
on environmental issues.
NZME is a climate-reporting entity under the
Financial Markets Conduct Act 2013. Our second
Climate related disclosures on pages 27 - 46
cover our progress between 1 January 2024 and
31 December 2024 and comply with the Aotearoa
New Zealand Climate Standards issued by the
External Reporting Board (XRB). All figures and
commentary relate to the full year ended
31 December 2024, unless otherwise indicated.
In preparing its climate-related disclosure,
NZME has elected to use the following adoption
provisions:
•
Adoption provision 2: Anticipated financial
impacts – While NZME’s process for prioritising
anticipated climate-related risks and opportunities
this year was guided by financial quantification
methods and financial materiality, significant
uncertainty remains in estimating potential
financial impacts. This uncertainty primarily
arises from the assumptions underpinning
each scenario, which influence the scope and
quantification of potential climate impacts. With
further guidance expected from the External
Reporting Board (XRB) for New Zealand climate
reporting entities (CREs), NZME anticipates
conducting a comprehensive financial
quantification of climate risks and opportunities
in 2025, leveraging methods that ensure
consistency and comparability across CREs.
•
Adoption provision 4 and 5: Scope 3 GHG
emissions and comparatives – our scope 3
emissions will be reported in our third climate
disclosure, next year.
•
Adoption provision 8: Scope 3 GHG emissions
assurance – we will obtain assurance over
our scope 3 emissions in our third climate
disclosure, next year.
Climate related
disclosures
Climate resilience
ANNUAL REPORT 2024 27
Important note
Our climate-related disclosure contains
statements that are based on data, methodologies,
assessments and judgements that are subject
to significant uncertainty, limitations and
assumptions, and which may change. While
NZME has sought to provide accurate information
in respect of the reporting period ended 31
December 2024, we caution reliance being
placed on information in this report, which may
be necessarily less reliable than NZME’s other
public reporting. The climate related data and
other inputs we have used (including from third
parties and our supply chain) may be incomplete,
inconsistent, unreliable or unavailable, and we may
have needed to rely on assumptions, estimates or
proxies instead. Similarly, climate modelling and
scenarios are emerging methodologies that rely
on significant assumptions and judgements and
may not reliably predict future events.
Our climate-related disclosure also contains
forward-looking statements, including with
respect to climate related scenarios, impacts,
targets and ambitions, forecasts and projections,
as well as NZME’s business plans and operations,
future operating environment and market
conditions, which may not eventuate as predicted.
The risks and opportunities described here may
not eventuate or may be more or less significant
than anticipated. There are many factors that
could cause NZME’s actual results, performance or
achievement of climate-related metrics (including
targets) to differ materially from that described,
including economic and technological viability,
as well as climatic, government, consumer, and
market factors outside of NZME’s control.
We similarly caution reliance being placed
on forward-looking statements, which are
necessarily subject to significant risk, uncertainty
and assumptions. We have based our statements
and opinions on reasonable information known to
us at the time of publication, but this information
may change including for reasons beyond NZME’s
control.
While we do not undertake to revise or update
our climate-related disclosure in future, as
the quality and completeness of inputs and
information improves, and our organisational
strategy evolves, we reserve the right to do
so. This note should be read with the specific
limitations, dependencies, uncertainties set
out below, in particular page 42. NZME gives no
representation, guarantee, warranty or assurance
that actual outcomes or performance will occur in
line with forward-looking statements, and, to the
maximum extent permitted by law, NZME does not
accept any liability for any loss arising from use
of, or reliance on, information contained in this
climate disclosure. Nothing in this climate-related
disclosure should be interpreted as capital growth,
earnings or any other legal, financial, tax or other
advice or guidance. For detailed information on
our financial performance, please refer to our
financial statements on pages 70 - 119.
For and on behalf of the Board of Directors.
Barbara Chapman
Carol Campbell
Chairman
Director
Date: 25 February 2025
Continued
Climate related disclosures
28 NEW ZEALAND MEDIA AND ENTERTAINMENT
Board oversight
NZME's Board of five independent Directors
is responsible for oversight of climate-related
risks and opportunities. Climate-related risks
and opportunities are reflected in the Group’s
Sustainability Commitment. The Board Charter
stipulates that a key function of the Board
is to ensure the Group’s health and safety,
environmental and operational practices and
culture comply with legal requirements and that
the Group’s Sustainability Commitment reflects
best practice and is recognised by employees
and contractors as key priorities for the Group.
The Board reviews NZME’s overall strategy
and progress against its strategic priorities
annually with the Executive management team.
As part of this process the Executive team and
the Board consider risks and opportunities,
including climate-related risks and opportunities,
across the business and how those risks and
opportunities shape NZME’s strategy and impact
the setting and achievement of its strategic
priorities.
They convene at least six times per year and
receive recommendations from the Audit & Risk
Committee, gain insights, review, and ensure proper
implementation of internal control mechanisms and
risk management process for good governance,
including on climate-related issues.
The material climate-related risks and opportunities
identified by the business are presented annually to
the NZME Board, following an annual review against
current trends and scenarios. Climate change
and sustainability is a standing agenda item at the
Board Audit & Risk Committee’s meetings to ensure
progress on management actions in these areas is
monitored and discussed.
During 2024, the NZME Board engaged in
training and education to ensure it has in place
the appropriate skills and competencies to
provide oversight of climate-related risks and
opportunities. This included engaging external
experts to provide climate knowledge-building
across the Board and using Chapter Zero
resources and tools to develop capability. Board
climate capability is also established through
experience on Boards of other climate reporting
entities, including:
•
Barbara Chapman through her roles with
Genesis Energy Limited (Chair), Fletcher
Building Limited (Director) and Bank of New
Zealand (Director);
•
Carol Campbell through her roles with NZ
Post Limited (Chair) and T&G Global Limited
(Director);
•
David Gibson through his roles on Goodman
Property Trust (Deputy Chair), Freightways
Group Limited (Director) and Contact Energy
Limited (Director).
The Board has included climate change into its skills
matrix. The People, Remuneration & Nominations
Committee of the Board is responsible for making
recommendations to the Board in relation to the
composition of and nominations to the Board.
Climate-related skills and competencies will in future
be included in this assessment.
NZME’S 2024 climate metrics and targets include
its Scope 1 and 2 emissions and associated
targets. These were signed off by the Board in
2023 and emissions progress has been monitored
as part of the Board risk review process.
Governance
ANNUAL REPORT 2024 29
Management’s role
The Executive management team members have
the highest management-level responsibility for
identifying, assessing and managing climate-
related issues. Supported by the risk committee
(chaired by the CFO) they report to the Board,
including through its committees, on the
climate-related impacts on the business and
are responsible for implementing the strategic
response and monitoring the overall risk
exposure of NZME. They ensure that Climate-
related Disclosure Working Group (“CRD Working
Group”) receive appropriate organisational
support to contribute to establishing a framework
and process for the inclusion of climate-related
impacts in the enterprise risk management
programme and strategic implementation.
Climate-related responsibilities have been
assigned to management level positions that
have accountability for identifying, managing,
and reporting climate-related issues. The
CRD Working Group was formed in 2023 and
includes the following members of the Executive
management team: the Chief Executive Officer,
the Chief Financial Officer, Chief Marketing
Officer, Chief People Officer and the Health,
Safety & Compliance Manager; with assistance
from senior representatives from across the
company. This group provides tactical and
specialist support with the identification and
management of climate-related issues and
reports through to the NZME risk committee.
Coordinated by the CFO, they meet as required
during the year and report progress to the risk
committee, who in turn report to the Executive
management team. The CFO engages with
the Board and/or the Board Audit & Risk
Committee at each meeting on NZME’s
climate-related progress.
The Executive management team and the CRD
Working Group (reporting through the risk
committee, chaired by the CFO) review the
material climate-related risks and opportunities
six monthly. The output of this assessment is
integrated into NZME’s risk register, emissions
management planning, strategy, budgeting, and
external reporting. The Executive management
team monitor progress on tactical activities to
address climate-related risks and opportunities.
Performance Review
The Chairman meets annually with directors of
the Company to discuss their performances.
The Board reviews its performance as a whole,
and the performance of its committees, on an
annual basis. The Board may choose to use
external facilitators, where appropriate, to assist
with reviewing the performance of directors, the
Board and its Committees.
STRATEGY
Current physical and transition climate impacts
In 2024 NZME only encountered one climate
transition risk – the impact of legislative reporting
requirements in accordance with the Aotearoa
New Zealand Climate Standards. The costs
incurred were quantified at between NZ$0.3
million – $0.4 million which included the direct
costs associated with the use of external
consultants/expertise and independent assurance
of Scope 1 and 2 greenhouse gas emissions,
and indirect costs associated with internal time
and resource. The costs incurred aligns with the
anticipated financial impact of enterprise risks
identified as having a ‘minor’ consequence or
above on NZME’s revenue (300C per year to 2099
6.6
6.8
17.7
Heavy rainfall (99th
percentile) per annum
15.8%
14.4%
22.2%
Climate policy
Stringent migration, targeting
Net Zero 2050; adaptation
focused on strategic transition
in land use and urban design
NZ lags in global migration,
adopting weak targets.
Adaptation is piecemeal,
reactive and economically
motivated
Limited migration or transition
focus. Short term economic
interests drive adaptation,
neglecting vulnerable groups
Transportation
Consumer sentiment
Rapid reorientation towards
sustainable lifestyles, focus
on wellbeing and conscious
consumption
Current consumption trends
continue, adoption of more
sustainable lifestylesby
successive generations
Consumer sentiment mostly
focused on economic growth,
convenience & consumption
Continued
Climate related disclosures
32 NEW ZEALAND MEDIA AND ENTERTAINMENT
Figure 3: NZME’s 2024 entity-specific scenario narratives
Rapid integration of sustainability
into NZME’s operations.
Short Term
(1-3 Years)
Medium Term
(4-10 Years)
Long Term
(11-30 Years)
Very
Long Term
(31-70 Years)
Demand for content focused on
sustainability and climate transition
issues increases.
Enhanced business continuity measures
for climate resilience established across the media
industry.
Investment in digital infrastructure and platforms.
Advanced AI and data analytics personalises content,
catering to audience interest in sustainability.
New revenue streams through diversification into
innovative media formats and content partnerships
focused on sustainability.
Implementation of activities to improve
climate resilience of media infrastructure
to withstand extreme weather.
NZME plays a crucial role in New Zealand’s
sustainability dialogues, influencing policy
and public behaviour through its
platforms.
NZME’s media infrastructure is increasingly resilient
and well adapted, allowing it to maintain operations
even during climate-related disruptions.
While crisis reporting remains important, the
focus shifts towards long-term climate trends and
sustainability achievements, reflecting global
progress.
Deep Decarbonisation
Short Term
(1-3 Years)
Medium Term
(4-10 Years)
Long Term
(11-30 Years)
Very
Long Term
(31-70 Years)
Short Term
(1-3 Years)
Medium Term
(4-10 Years)
Long Term
(11-30 Years)
Very
Long Term
(31-70 Years)
The global climate stabilises, with
low-moderate frequency of extreme
weather events, and the NZME’s media
infrastructure is fully resilient.
Organisations including NZME, face
the challenge of balancing commercial
interests with social responsibility as
moderate increases in extreme weather
events begin to impact operations.
Financial constraints limit the scope of mitigation
efforts and investment in infrastructure resilience.
New regulations on climate disclosure and content
accuracy require investment in compliance systems
and additional advisory support.
The digital transition trend and content platform
preferences are disjointed, making it challenging
for NZME to develop a long-term strategy for the
evolution of its content platforms.
Extreme weather event frequency increases,
causing more frequent operational disruption
affecting transmission and distribution and
causing supply chain disruption.
While there is moderate progress on
sustainability, crisis reporting, particularly
during extreme weather events, becomes
a critical service.
Extreme weather events become more frequent
and severe, leading to increased vulnerabilities in
media transmission and digital infrastructure, and
media companies struggle to maintain consistent
coverage.
Efforts to adapt are hampered by inconsistent
progress in global climate action, resulting in
periodic service failures during disasters.
In an uncertain world, the media industry’s
focus shifts to maintaining market position
rather than driving transformational change,
with limited new opportunities for growth.
NZME experiences rapid growth driven
by economic expansion and
technological innovation.
Digital platforms dominate, while print media faces
disruptions due to supply chain issues and extreme
weather.
There is high demand for real-time coverage of
extreme weather events, but media infrastructure
struggles to handle spikes demand during crisis.
Audiences become increasingly
fragmented, with content tailored to
reinforce their worldviews. Sensationalised
reporting becomes more common, driving
engagement but also increasing skepticism.
Increasing technological innovation, utilising
AI, VR, and other cutting-edge technologies
is used to deliver media content.
Severe climate impacts
and extreme inequality.
Supply chain disruptions becoming more common,
affecting both print and digital operations.
Regulatory pressures mount as governments seek
to curb misinformation and enforce stricter content
accuracy standards.
As catastrophic weather events become more
frequent and severe, media infrastructure faces
significant challenges. Efforts to adapt are
reactive and insufficient, leading to frequent
disruptions in service.
The global climate stabilises, with low-moderate
frequency of extreme weather events,
and the NZME’s media infrastructure is
fully resilient.
Status Quo
Carbon Intensive
ANNUAL REPORT 2024 33
Our climate scenario analysis was performed as a
stand-alone process. However, the outputs have
been integrated into NZME's Risk Management
Framework, as well as our Sustainability
Commitment, environmental management
planning, and associated metrics and targets.
Members of the Executive Management Team
as well as the CRD Working Group were involved
in the scenario analysis and the development of
management activities to address different risks
and opportunities. The Board were provided
regular updates on the progress and outputs
of the scenario analysis, risk assessments and
resulting management activities.
Time horizons
In 2024, we added a further time horizon of
Very Long Term (30-75 years). Adding this fourth
time horizon for the scenarios meant that our
assessment covered the full period to the end
of the century to align with the time horizons of
the climate scenarios. We defined these time
horizons as follows:
•
Short-term: Next 1-3 years (aligned with
business planning) Focus on managing
immediate risks such as disruptions to
operations due to extreme weather events,
developing content that addresses climate risks
and opportunities and mitigation and efficiency
of own emissions.
•
Medium-term: Next 4-10 years (aligned with
asset management and publication life)
Focus on transitional risks such as regulatory
changes that impact advertising or content
distribution, changes in technology, shifts
in market conditions that affect advertising
revenue or changes in consumer behaviour due
to shifting attitudes towards climate change.
Also includes longer-term adaptation measures
such as changes to physical infrastructure - e.g.
print plant decision-making window. Continued
mitigation and efficiency of own emissions.
•
Long-term: Next 11 - 30 years (aligned with
investor relations and radio stream life)
During this time, physical risks such as sea level
rise, changes in temperature and precipitation
patterns, and other impacts of climate change
may become more pronounced. NZME will need
to continue to mitigate its impact and may need
to transform the nature of its business.
•
Very long-term: Next 31-75 years (out to
the end of the century) During this time,
physical risks such as sea level rise, changes
in temperature and precipitation patterns,
and other impacts of climate change will
become more pronounced. Adaptation
will be a key focus.
NZME considered its full value chain when
evaluating its exposure to climate-related risks
and opportunities, including its stakeholders,
processes, assets and materials connected with
content creation, production, distribution, and
audience engagement. Our anticipated physical
and transition impacts are outlined in Table 1,
prioritised by scenario. While NZME’s process
for prioritising anticipated climate-related
risks and opportunities this year was guided by
financial quantification methods and financial
materiality, significant uncertainty remains in
estimating potential financial impacts. This
uncertainty primarily arises from the assumptions
underpinning each scenario, which influence
the scope and quantification of potential climate
impacts. With further guidance expected from
the External Reporting Board (XRB) for New
Zealand climate reporting entities (CREs),
NZME anticipates conducting a comprehensive
financial quantification of anticipated climate
risks and opportunities in 2025, leveraging
methods that ensure consistency and
comparability across CREs. This will enable NZME
to more accurately evaluate how climate related
risks and opportunities serve as an input to its
funding decision-making processes.
Continued
Climate related disclosures
34 NEW ZEALAND MEDIA AND ENTERTAINMENT
Table 1: Anticipated climate risks and opportunities
Climate issue
/ Type
Business Risk
Anticipated Impact
Relevant
Scenario and
Time Horizon
Management Response
Increased
severity of
extreme
weather /
Physical
Business continuity and
climate change effects -
Risk of physical damage
to office, print plant or
transmission equipment,
impacting our ability to
operate, access systems,
broadcast, transmit or
deliver content to our
customers through our
media channels.
Health and Safety - Risk of
serious incident, illness,
injury or death arising
out of NZME people and
journalists covering extreme
weather events.
Direct revenue loss
from papers not
delivered, content
not able to be
produced, content
not distributed, NZME
people unable to
access sites/perform
work duties, potential
brand damage. Costs
associated with
insurance excess and
damage to uninsured
sites and equipment
requiring repair or
replacement.
Status Quo /
Carbon Intensive
Short term
Regularly review and update
business continuity plans,
test run BCP annually, review
redundancy model to ensure
remote management of
transmission can happen
during extreme weather,
undertake physical risk
assessment on all sites and
make improvements. Monitor
insurance costs and availability
over time. Satellite internet
provided in remote offices and
diesel generators to ensure
equipment can operate.
Ensure staff capability to work
remotely, review options
to collaborate with others
in industry, develop severe
weather comms plan.
Legislative
reporting
requirements /
Transition
Corporate governance &
Reputation and Brand - Risk
that governance duties
and functions associated
with enhanced obligations
of climate reporting are
not performed properly.
Exposure to litigation, fines,
censures, and reputational
risk if not disclosure
requirements not fully met.
Short term cost of
consultants, audit and
time associated with
internal resourcing;
Potential costs of
fines, stock price/
value.
Deep
Decarbonisation
/ Status Quo
Short term
Right size resourcing required
to implement climate reporting,
using expert consultants
where needed. Ensure internal
capability development and
alignment on managing climate
risks and opportunities. Work
with industry groups/peers to
understand wider risks, ensure
public relation/government
relation plans are implemented.
Ensure NZME complies
with the climate disclosure
requirements as set out under
NZ CS 1 - 3.
Price and
availability of
insurance /
Transition
Finance and Funding - Risk
of higher cost of insurance
premiums in the shorter
term and potential reduced
availability/access to
insurance in the longer term
for owned transmissions
assets located in areas
exposed to high extreme
weather risk.
Cost of insurance and
excesses increasing
in the short term and
potential future costs
associated with self-
insuring, or repairing
owned transmission
assets.
Status Quo /
Carbon Intensive
Short - Long term
Annual review our property
profile with insurers
regional risk profile, identify
opportunities to limit losses
and access lower premiums.
Climate Issue
/ Type
Business Opportunity
Anticipated impact
Relevant
Scenario & Time
horizon
Management Response
Shifting
consumer
preferences,
new market
opportunities /
Transition
Advertiser and Audience
Preferences - Opportunity
associated with the
development of new
products and services,
focused climate-related
content/platforms, access
to consumers interested
in sustainably produced
journalism and events,
access to advertisers
wanting to work with
sustainable media
companies.
Revenue increase -
increased readership/
subscriber base and
advertiser spend.
Deep
Decarbonisation
/ Status Quo
Short - Med term
Establish audience engagement
in climate content, engage
expert contributors, work on
quality and breadth of content,
highlight progress through
public relations and marketing.
ANNUAL REPORT 2024 35
Figure 4: Climate considerations in asset management
Regions with highest exposure to extreme weather,
all scenarios with a view to 2100*
NZME asset exposure
Coastal Areas: Regions such as Northland, Auckland, and Bay of Plenty are at heightened
risk from more frequent and intense storm events, exacerbated by rising sea levels and
coastal erosion. Storm surges and high winds are expected to have significant impacts on
these areas.
Company vehicles
Rented office spaces
FM/AM towers
Central and Lower North Island: Areas like Taranaki, Wellington, and parts of the
Manawatū-Whanganui region are vulnerable to stronger westerly winds and storm
systems, especially under scenarios with higher emissions.
Company vehicles
Rented office spaces
FM/AM towers
South Island West Coast: The West Coast will likely experience an increase in heavy
rainstorms and associated wind events due to its exposure to prevailing westerlies and
enhanced moisture availability from a warming atmosphere.
Company vehicles
Rented office spaces
FM/AM towers
Ex-Tropical Cyclone Paths: As tropical cyclone activity shifts southward, northern
and eastern parts of the country, such as Gisborne and Hawke’s Bay, may see a higher
frequency of ex-tropical cyclones, which bring intense winds and rainfall.
Company vehicles
Rented office spaces
FM/AM towers
* Source: NIWA – Our Future Climate; Natural Hazards Commission- Natural Hazards Portal.
Continued
Climate related disclosures
Transitioning to a low carbon, climate resilient future
The transition plan aspects of our strategy are embedded
in our corporate sustainability commitment (page 26) and
include focusing on three key initiatives:
1. Reducing and mitigating the environmental
impact of our operations
2. Responding to our climate-related risks
and opportunities (Table 1)
3. Growing societal connection and engagement
on climate and environmental issues
These initiatives are applicable across all parts of our
strategy. We have drawn on the Transition Plan Taskforce
(TPT) Disclosure Framework in detailing the transition plan
aspects of our strategy, as set out in Table 2 and Figure 5.
36 NEW ZEALAND MEDIA AND ENTERTAINMENT
Table 2: NZME’s transition planning framework
Initiative
Reduce and Mitigate our Impact Respond to our Climate-Related
Risks and Opportunities
Grow Societal Connection
and Engagement
Ambition
By reducing our environmental
impact, including cutting
greenhouse gas emissions, we
will enhance the environmental
performance of our media
platforms. This, in turn,
empowers our customers,
advertisers, and our broader
value chain to advance their own
decarbonisation efforts.
By effectively managing our
climate risks and opportunities,
we aim to transition and adapt in
a way that secures the long-term
social, environmental,
and financial sustainability
of our business.
By leveraging our platforms
to enhance understanding of
climate change and the low-
carbon transition, we aim to
shape public awareness, inspire
action, and foster informed
discussions on climate-related
issues.
Action
•
GHG emissions
measurement
•
Decarbonisation plan
•
Supplier engagement
and choice
•
Asset management: vehicle
fleet, Ellerslie print plant
•
Business continuity plan
reviewed annually
•
Redundancy model to ensure
continuous transmission
•
Maintain transmissions sites
•
Regular engagement
with insurers on our asset
risk profile
•
Develop products and
services, and/or focused
climate-related content
within our platforms
Accountability
•
FY32 Scope 1 and 2 GHG
target: 50.4% absolute
reduction on 2022
•
GHG reporting to CRD
working group, executive
team and Board
•
Annually disclose our GHG
emissions publicly
•
Continue to build
internal capability
•
Track progress against
GHG targets
•
Quantify the financial impact
of anticipated risks and
opportunities
•
Engage with media
industry, particularly where
transmissions infrastructure
is shared
•
Continue to build
internal capability
•
Monitor insurance costs
•
Build internal engagement
and journalistic capability in
environmental and climate
related issues
•
Track audience engagement
in climate and environmental
issues
ANNUAL REPORT 2024 37
Figure 5: NZME’s greenhouse gas emissions reduction plan
Achieving our 2032 GHG Emissions Target
NZME aims to achieve an absolute reduction
of 50.4% on its Scope 1 and 2 greenhouse gas
emissions by 2032 (base year 2022). This is a
science-aligned target which is consistent with
limiting global warming to 1.5 degrees celsius.
While the target has been developed in-line with
the Science Based Target Initiative (SBTi) by using
the SBTi’s publicly available Corporate Near-Term
Tool and target setting guidance, NZME’s GHG
emissions target has not been submitted to or
validated by the SBTi.
We are making good progress towards this
target, achieving 10.6% reduction between 2022
and 2024 substantially through reducing the
size of our vehicle fleet (153 vehicles to 116) and
beginning to transition the remaining vehicles
to lower carbon alternatives (Hybrid vehicles are
now 39% of the fleet).
Our emissions reduction plan focuses on
continuing to manage the size and efficiency
of our vehicle fleet, replacing our natural gas
forklifts with electric alternatives, and improving
the efficiency of our print plant. Our strategy
and investment in digital and audio platforms
align with growing audience demand for these
channels and the ongoing shift away from
physical print media, which has driven consistent
year-on-year declines in print volumes—a
trend expected to continue. This reduction
in print volumes will naturally lower energy
consumption and emissions at the Ellerslie print
plant. Additionally, we will evaluate technology
options to further enhance the efficiency of the
site's remaining energy demands. We expect
New Zealand’s grid electricity supply to continue
decarbonising during our target period, which
will contribute to a reduction in our electricity-
related emissions.
Continued
Climate related disclosures
737
1,298
1,376
1,464
Tonnes
CO2e
Base year
2022
Emissions reduction activities
Target year
2032
50.4%
2024
Actual
2023
Actual
2025
2026
2027
2028
2029
2030 2031
Fleet efficiency transition
Ellerslie Boiler switch to Diesel in 2024
General efficiency target
Electricity reduction, less and more efficient sites
38 NEW ZEALAND MEDIA AND ENTERTAINMENT
However, due to the inherent uncertainty in this
and factors beyond our control, this has not been
incorporated into our modelling.
The costs associated with our transition plan,
including our emissions reduction activities,
managing our climate related risks and
opportunities, and growing societal connection
and engagement are currently being managed.
We do not anticipate additional investment will be
required, however we will review this annually.
RISK MANAGEMENT
NZME undertook scenario analysis in September
2024 to identify and assess the scope, size
and impact of its climate-related risks and
opportunities.
We tested the material climate related risks
and opportunities identified in 2023 under the
refreshed 2024 scenario narratives, evaluating
their likelihood and consequence, where
'likelihood' evaluated the speed of onset, or the
time the risk or opportunity was expected to be
first experienced (in the short, medium, long or
very-long term) and 'consequence' related to the
potential financial impact on NZME, utilising the
existing financial impact definitions outlined in
our Risk Management Framework, whereby minor
= NZ$5m. This ensures
climate-related risks are assessed and prioritised
on a comparable basis as NZME’s other risks
and are categorised in its group risk matrix. That
matrix incorporates an assessment of likelihood
and impact for each risk and prioritises risks
accordingly. No part of NZME's value chain was
excluded from its climate-related assessment.
NZME acknowledges the significant
interdependencies between climate-related risks
and other risks within the business. To address
this, NZME has fully integrated climate-related
risks into its risk management framework.
Existing risk frameworks and policies have been
updated to encompass climate-related risks,
ensuring a cohesive approach. Furthermore,
climate-related risk management information is
now embedded within our reporting processes
to the NZME Audit and Risk Committee and
the Board, enabling comprehensive oversight
and strategic alignment. NZME will continue to
evaluate and monitor its climate-related risks and
opportunities annually, in line with current risk
management activities.
NZME's priority risks and opportunities present
under each scenario are outlined in Table 1
on page 35. We evaluated our vulnerability to
the identified priority risks and opportunities
to establish our risk control measures and
management response.
METRICS AND TARGETS
Greenhouse Gas Emissions
NZME's base year (2022), 2023 and 2024 Scope
1 and 2 greenhouse gas (GHG) emissions,
emissions intensity, and industry-based metrics
are provided in Table 3. NZME uses a calendar
year reporting period (1st January – 31st December)
aligned to its financial reporting period. We are
measuring Scope 3 emissions, which are planned
to be reported for 2025.
Base year data may need to be revised when
material changes occur and have an impact
on calculated emissions. When the changes are
estimated to represent more than 5% of Scope
1, 2 or 3 emissions, or when there are significant
changes to the organisational or reporting
boundaries or calculation methodology, NZME's
approach is to recalculate base year data with
explanation. No recalculations were required
in 2024.
Greenhouse Gas quantification is subject
to inherent uncertainty because of incomplete
scientific knowledge used to determine
emissions factors and the values needed
to combine emissions of different gases.
Organisational boundaries were set with
reference to the methodology described
in the Greenhouse Gas (GHG) Protocol.
An operational control consolidation approach
was used to account for emissions. Emissions
measured in this approach arise from the
business units owned or controlled by NZME.
These are detailed on the next page.
NZME aims to achieve an absolute
reduction of 50.4% on its Scope 1 and 2
greenhouse gas emissions by 2032.
ANNUAL REPORT 2024 39
NZME Holdings Limited including NZME Limited
and the following wholly owned subsidiaries:
•
NZME Holdings Limited
•
NZME Investments Limited
•
NZME Publishing Limited
•
NZME Educational Media Limited
•
NZME Specialist Limited
•
NZME Print Limited
•
New Zealand Radio Network Limited
•
The Hive Online Limited
•
OneRoof Limited
•
NZME Advisory Limited
•
NZME Radio Limited
•
The Radio Bureau Limited
•
NZME Radio Investments Limited
•
NZME Australia Pty Limited
Excluded entities
•
The Radio Bureau
•
New Zealand Press Association
•
The Wairoa Star Ltd
•
The Beacon Printing & Publishing Company Ltd
•
Eveve NZ Ltd
•
Restaurant Hub Ltd
•
The Gisborne Herald Company Limited
This inventory accounts for emissions arising
from Scope 1 and 2 only. This includes emissions
sources such as vehicles, boilers and purchased
electricity.
The GHG emissions sources included in this
inventory were identified with reference to the
methodology described in the GHG Protocol
standard. Identification of emissions sources
was achieved via personal communications with
NZME staff and cross-checked against source
data sets provided by suppliers. As adapted
from the GHG Protocol, these emissions were
classified into the following categories:
•
Direct GHG emissions (Scope 1): GHG emissions
from sources that are owned or controlled by
the company.
•
Indirect GHG emissions (Scope 2): GHG
emissions from the generation of purchased
electricity, heat and steam consumed by the
company.
Table 3 below summarises the methodology
for collection of data and relative uncertainty
associated with the data source.
NZME has not purchased any emissions offset
or reductions within the reporting period.
NZME has also not used any market-based
instruments to reduce emissions in its Scope 2.
As such, Scope 2 reporting is provided on
a location-based method only.
Table 3: NZME’s GHG emissions and industry-based metrics
Greenhouse Gas Emissions
Location Based
2024
2023
2022 (base
year)
Variance
2024
vs 2022
2032 Target
(Location Based)
(base year 2022)
Scope 1 / Category 1
(T CO2e)
663
721*
781*
15.1% ↓
50.4% / 393 T CO2e
Scope 2 / Category 2
(T CO2e)
646
655*
683*
5.4% ↓
50.4% / 344 T CO2e
Emissions intensity
(TOTAL T CO2e per FTE)
1.10
1.15
1.22
9.8% ↓
N/A
* Refer to our progress for details on reductions.
Continued
Climate related disclosures
40 NEW ZEALAND MEDIA AND ENTERTAINMENT
Table 4: NZME’s Consumption Metrics
Consumption metrics
Location Based
2024
2023
2022
Variance 2024
vs 2022
Fleet Fuel (Petrol L)
121,660
144,865
154,550
21.3% ↓
Fleet Fuel (Diesel L)
25,694
30,098
35,248
27.1% ↓
Forklift Fuel (LPG Kg)
5,289
5,295
5,790
8.7% ↓
Diesel Generators (Diesel L)
2,350
4,996
0
Refrigerants**
(Ellerslie Print site) (L)
0
N/A
N/A
Stationary energy
(Natural Gas GJ)
5,366
4,853
5,476
2.0% ↓
Purchased electricity (kWh)
8,861,400
8,833,274
9,206,848
3.8% ↓
* Scope 1 & 2 TCO2e emissions for the years ended 31 December 2022 (base year) and 31 December
2023 received independent limited assurance by PwC. Scope 1 & 2 TCO2e emissions for the years
ended 31 December 2024 received independent reasonable assurance by Toitū Envirocare.
The audit assurance opinion provided by Toitū has been included on pages 44 - 46.
** Not measured in 2022 or 2023
Greenhouse gas emissions inventory
GHG emissions are expressed as aggregated
carbon dioxide equivalent (CO2e) units and
covers the following greenhouse gases: carbon
dioxide (CO2), methane (CH4), and nitrous oxide
(N2O). Hydrofluorocarbons (HFCs).
Table 5: NZME’s CO2e Emissions Breakdown
Location Based
T CO2/unit
(TCO2-e)
T CH4/unit
(TCO2-e)
T N2O/unit
(TCO2-e)
TOTAL FY24
(TCO2e )
Scope 1
649
4.7
9.6
663
Scope 2
622
23.0
0.7
646
Methodologies
No significant emissions have been estimated.
No significant assumptions have been made
in Scope 1 & 2.
No market-based reporting was used for the
FY24 reporting period.
Greenhouse Gas emissions exclusions
The following emissions sources have been identified
and excluded from the GHG emissions inventory:
•
Refrigerant use in office air conditioning units
– due to poor data availability.
•
Scope 3 adoption provisions.
Base year and reporting period
This inventory covers the period 1st January 2024
– 31st December 2024.
NZME uses a calendar year reporting period
(1st January – 31st December) aligned to its financial
reporting period. The base year being used currently
is FY22 (1st January 2022 – 31st December 2022).
FY22 is being used as the base year as it was the
first year of reliable data post Covid.
The current FY24 Methodology for Scope 1 & 2
emissions were used for the base year FY22.
Emissions Policies
Currently no policy is in place. In 2025 we plan to
develop a base year recalculation policy which
is likely to include a limit of 5% for base year
adjustments.
Our progress
NZME's near term FY32 Scope 1 and 2 target is a
50.4% absolute reduction on 2022. This science-
aligned target follows a pathway of limiting global
warming to 1.5 degrees, using the methodology
set by the Science Based Target initiative. In 2024
we achieved a 10.6% reduction on our Scope 1
and 2 emissions, compared to 2022, which is on
track towards our science-aligned target.
ANNUAL REPORT 2024 41
Progress towards this target has been made by
reducing petrol and diesel usage, resulting from
a reduction in the fleet size and the continuation
of transition to hybrid and more efficient vehicles.
Electricity and gas usage is also down, with lower
activity and increased efficiency from reduced
print production at our Ellerslie site.
Criteria used to prepare our greenhouse gas
emissions statement
NZME's GHG emissions inventory has been
prepared in accordance with the Greenhouse
Gas (GHG) Protocol Corporate Accounting
Standard. NZME has taken an operational control
consolidation approach in the preparation of its
GHG emissions inventory. Emissions measured
in this approach arise from the business units
owned or controlled by NZME. Our emissions
factors were sourced from Te ine tukunga:
He tohutohu pakihi - Measuring emissions:
A guide for organisations: 2024 emission factors
summary, published by the Ministry for the
Environment (MfE Report). These are based on
the 100 year Global Warming Potential (GWP
values) (GWP100) for the IPCC’s Fifth Assessment
Report (AR5).
Table 6 summarises the methodology for
collection of data and relative uncertainty
associated with the data source.
Table 6: Emissions sources and methodology for data collection
Emissions
Source
Scope
Data source
Data
unit
Uncertainty
Fleet – vehicles
(petrol/diesel)
1
Obtained volumes of fuel from
fuel card reports, supplier
invoices and credit card
spend data and applied the
appropriate emissions factors
from the MfE Report.
L
Low - relied upon the supplier to
provide complete and accurate
invoice data, and that this is an
appropriate representation of
activity.
Fleet – forklift (LPG)
1
Obtained volumes of LPG
purchased from supplier
invoices and applied the
appropriate emissions factor
from the MfE Report.
kg
Low - relied upon the supplier to
provide complete and accurate
invoice data, and that this is an
appropriate representation of
activity.
Natural gas
- boiler
1
Obtained volumes of natural
gas purchased from supplier
invoices and applied the
appropriate emissions factor
from the MfE Report.
GJ
Low - relied upon the supplier to
provide complete and accurate
invoice data, and that this is an
appropriate representation of
activity.
Diesel - Generator
1
Obtained volumes of diesel
purchased from supplier
invoices and applied the
appropriate emissions factor
from the MfE Report.
L
Low - relied upon the supplier to
provide complete and accurate
invoice data, and that this is an
appropriate representation of
activity.
Refrigerant
(Ellerslie Press Site)
1
Obtained confirmation that
there were no top-ups of
refrigerants from the supplier
for the Ellerslie site.
L
Medium - relied upon the supplier
to provide complete and accurate
service data for the Ellerslie site,
however, invoices need to be
manually checked to gather data for
other sites.
Purchased
electricity
2
Obtained the volume of
electricity consumed from
supplier invoices and applied
the appropriate emissions
factor from the MfE Report.
kWh
Low - relied upon the supplier to
provide complete and accurate
invoice data, and that this is an
appropriate representation of
activity.
Continued
Climate related disclosures
42 NEW ZEALAND MEDIA AND ENTERTAINMENT
Data was collected for the period 1st January 2024
– 31st December 2024. In most cases, source
supplier data was used to prepare this emissions
inventory. There were some areas where this was
not available due to the outsourcing of processes,
limiting the ability to access specific information.
These are summarised below:
•
Refrigerant data - For Ellerslie (key production
site) where we assume control/responsibility
for cooling systems, we have confirmed no top
ups of Refrigerants, we do not have the data for
other sites because they are leased/shared and
it is unavailable.
•
Diesel used in onsite generators – Where
we have control of site generators, we have
captured usage via invoices and card spend.
This was a manual process and human error
may have resulted in top ups being missed from
the reported data. We do not have the data for
other sites because they are leased/shared and
it is unavailable.
Risks and opportunities metrics
Our 2024 material risks and opportunities metrics
are summarised in Table 7. These consider
the current physical and transitional risks and
opportunities experienced in 2024. Quantitative
methods, including reviewing our assets register,
accounts and media platform data, were used to
establish the results for all metrics.
Table 7: Risks and opportunities metrics
Metric
2024
Amount or percentage of assets or business
activities vulnerable to transition risks
100% of business exposed to legislative reporting requirements
– climate disclosure.
100% of business exposed to rising insurance costs.
Amount or percentage of assets or business
activities vulnerable to physical risks
One asset - (Ellerslie print plant) located in 1/100 year flood
zone. However, a risk assessment undertaken in 2023 identified
this asset is vulnerable to a 1/200 year event.
Transmission equipment – vulnerable to disruption associated
with storms and floods.
Channel/print delivery network – vulnerable to disruption
associated with storms and floods.
Assets or business activities aligned with
climate-related opportunities
NZME’s strategy is to grow its digital channels recognising
that these will be the dominant way to reach audiences. This
strategy is aligned to climate related opportunities.
Amount of investment deployed toward
climate-related risks and opportunities
$1.3m (31 Vehicles) - invested in 2024 towards the three-year
rollover of our vehicle fleet to hybrids.
$300-400K invested in consultants, auditors and staff time to
meet legislative reporting requirements.
Internal emissions price
Not applied – we anticipate our emissions reduction activities
to be funded within our operational budget.
Management remuneration linked to climate-
related risks and opportunities
Management remuneration is not currently linked to
climate-related risk and opportunities nor incorporated into
remuneration policies. However, the People, Remuneration
and Nominations Committee of the Board will consider how to
incorporate climate-related performance metrics for relevant
roles at NZME in future.
ANNUAL REPORT 2024 43
To the intended users
Organisation subject to audit:
Audit Criteria:
Responsible Party: NZME Holdings Limited
Intended users: NZME's stakeholders
Registered address: 2 Graham Street, Auckland, 1010, New Zealand
Inventory period: 01/01/2024 to 31/12/2024
Conclusion
Basis of verification opinion
Verification
Emphasis of matter
INDEPENDENT ASSURANCE REPORT
Toitū Verification
EMISSIONS - REASONABLE ASSURANCE
We have obtained all the information and explanations we have required. In our opinion, the emissions, removals
and storage defined in the inventory report, in all material respects:
+ comply with the audit criteria; and
+ provide a true and fair view of the emissions inventory of the Responsible Party for the stated inventory period.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We have undertaken a verification engagement relating to gross GHG emissions, additional required disclosures of
gross GHG emissions, and gross GHG emissions methods, assumptions and estimation uncertainty on pages 39
(from "Metrics and Targets" section), 40, 41 (excluding paragraphs "Emissions Policies" and "Our Progress"), 42 and
43 (excluding paragraph "Risks and Opportunities metrics" and "Table 7: Risk and Opportunities Metrics") for the
financial year ended 31 December 2024 . Additionally, our assurance engagement does not extend to targets or
emissions reduction progress, of which details may be referenced within pages 1 to 38 and 47 to 124. The scope of
emissions and level of assurance are disclosed below.
The GHG emissions Report provides information about the greenhouse gas emissions of the organisation for the
defined measurement period and is based on historical information. This information is stated in accordance with
the requirements of Greenhouse Gas Protocol: A Corporate Accounting and Standard (2004).
Without qualifying our opinion expressed above, we wish to draw the attention of the intended users the following
disclosures on page 39 which, in our judgement, are of such importance that they are fundamental to user’s
understanding of the GHG disclosures :
NZME Holdings Limited
+ Greenhouse Gas Protocol: A Corporate Accounting and Standard (2004), GHG Protocol:
Scope 2 Guidance;
+ ISO 14064-3:2019 Greenhouse gases — Part 3: Specification with guidance for the
verification and validation of greenhouse gas statements;
+ Aotearoa New Zealand Climate Standards (NZ CSs) - issued by External Reporting Board
(XRB);
+ NZ SAE 1: Assurance Engagements over Greenhouse Gas Emissions Disclosure - issued by
External Reporting Board (XRB);
+ Technical Requirements Audit-V3.0
+ As disclosed in the third paragraph under "Metrics and Targets" section on page 39 of the climate statements,
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to determine
emissions factors and the values needed to combine emissions of different gases.
Toitū Envirocare
1
44 NEW ZEALAND MEDIA AND ENTERTAINMENT
Other matters
Responsible Party's Responsibilities
Responsibilities of verifiers
Existence of relationships
Verification strategy
Other matters that have not been disclosed in the GHG disclosures, that in our judgement are relevant to the
intended users:
COMPARATIVES
+ The comparative GHG disclosures (that is GHG disclosures for the period ended 31 December 2022 and 31
December 2023 have been subject to limited assurance by PwC, with their assurance report dated on 20 February
2024.
+ These comparative GHG disclosures have not been subject to an assurance engagement undertaken in
accordance with the New Zealand Standard on Assurance Engagements 1: Assurance Engagements over
Greenhouse Gas Emissions Disclosures ("NZSAE 1"). These disclosures are not covered by our assurance conclusion.
The Management of the Responsible Party is responsible for the preparation of the GHG disclosure in accordance
with Greenhouse Gas Protocol: A Corporate Accounting and Standard (2004) and Aotearoa New Zealand Climate
Standards (NZ CSs)- Climate-Related Disclosures. This responsibility includes the design, implementation and
maintenance of internal controls relevant to the preparation and fair presentation of a GHG disclosure that is free
from material misstatement, whether due to fraud or error.
Our responsibility as verifiers is to express a verification opinion to the agreed level of assurance on the inventory
report, based on the evidence we have obtained and in accordance with the audit criteria. We conducted our
verification engagement as agreed in the pre-audit engagement letter, which defines the scope, objectives, criteria
and level of assurance of the verification.
The International Standard ISO 14064-3:2019 requires that we comply with ethical requirements and plan and
perform the validation and verification to obtain the agreed level of assurance that the GHG emissions are free
from material misstatements. We are not permitted to prepare the GHG statement as this would compromise our
independence.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance
with the ISO 14064-3:2019 Standards will always detect a material misstatement when it exists. The procedures
performed on a limited level of assurance vary in nature and timing from, and are less in extent compared to
reasonable assurance, which is a high level of assurance.
Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error.
Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the decisions of readers, taken on the basis of the information we audited.
Toitū has also provided other non assurance services to the responsible party in relation to the Toitū Enviromark
programme. The Enviromark programme supports implementing and managing an Environmental Management
System (EMS) aligned with the ISO 14001:2015 (Environmental Management Systems) standard.
Subject to certain restrictions, our employees may also deal with the responsible party on normal terms within the
ordinary course of trading activities . These matters have not impaired our independence as verifier of the
responsible party. Toitū has no other relationship with, or interest in, the responsible party.
Our verification strategy used a combined data and controls testing approach. Evidence-gathering procedures
included but were not limited to:
+ activities to inspect the completeness of the inventory including a site visit;
+ interviews of site personnel to confirm operational behaviour and standard operating procedures;
+ reconciliation of fuel (petrol) records and electricity records;
+ sampling of natural gas records to confirm accuracy of source data into calculations;
+ reviewing emission factors for accuracy and appropriateness;
+ evaluating the overall presentation of the selected scope 1 and 2 disclosures;
+ recalculation of emissions.
The data examined during the verification were historical in nature.
Toitū Envirocare
2
ANNUAL REPORT 2024 45
Verification level of assurance
GHG PROTOCOL CATEGORIES
GHG SCOPE
tCO2e
LEVEL OF ASSURANCE
Scope 1
662.93
Reasonable
Scope 2
645.92
Reasonable
TOTAL INVENTORY
1,308.85
Responsible party's greenhouse gas assertion (claim)
Other information
Independence and quality management standards applied
VERIFIED BY
INDEPENDENT REVIEWER
ENGAGEMENT LEADER
Name:
Lesna Morar-Nunco
Billy Ziemann
Osana Robertson
Position:
Verifier, Toitū Envirocare
Independent reviewer
Toitū Envirocare
Signature:
Date verification audit:
21 January 2025
Date opinion expressed:
25 February 2025
Location:
Wellington
NZME Holdings Limited has measured its greenhouse gas emissions in accordance with the GHG Protocol in respect
of the operational scope 1 and 2 emissions of its organisation as it pertains to its organisational boundary.
The responsible party has a duty for the provision of Other Information. The Other Information may include
governance sections, financial commentary, ESG commentary, statutory disclosures, consolidated financial
statements and within the climate related disclosures sections around governance, strategy and risk management,
emissions management, targets and reduction plans, but does not include the information we verified, and our
auditor’s opinion thereon.
Our assurance engagement does not extend to any other information included, or referred to, in the Annual Report
on pages 1 to 39 (excluding section "Metrics and Targets"), 41 (only including paragraph "Emissions Policies" and
"Our Progress"), 43 (from paragraph "Risks and Opportunities Metrics" and "Table 7: Risks and Opportunities
Metrics"), 47 to 124. We have not performed any procedures with respect to the excluded information and,
therefore, no conclusion is expressed on it. Our responsibility is to read and review the Other Information, and
consider whether the Other Information is materially inconsistent with the information we verified, or our knowledge
obtained during the verification.
This assurance engagement was undertaken in accordance with NZ SAE 1 Assurance Engagements over
Greenhouse Gas Emissions Disclosures issued by the External Reporting Board (XRB). NZ SAE 1 is founded on the
fundamental
principles
of
independence,
integrity,
objectivity,
professional
competence
and
due
care,
confidentiality and professional behaviour.
We have also complied with the following professional and ethical standards and accreditation body requirements:
+ ISO 14065: 2020 – General principles and requirements for bodies validating and verifying environmental
information;
+ ISO 14066: 2011 – Greenhouse gases — Competence requirements for greenhouse gas validation teams and
verification teams;
+ ISO 17029: 2019 – Conformity assessment — General principles and requirements for validation and verification
bodies;
+ IAF MD4:2023 - For the Use of Information and Communication Technology (ICT) for Auditing/Assessment
Purposes;
+ Joint Accreditation System of Australia and New Zealand Accreditation Requirements
Toitū Envirocare
3
46 NEW ZEALAND MEDIA AND ENTERTAINMENT
ANNUAL REPORT 2024 47
2024 Digital Sales
Excellence (Team)
NZME Agency Sales Team
NZME
2024 Digital Ad Operations
Excellence (Team)
NZME Digital Ad Operations:
The Ultimate Digital Revenue
Bodyguards
NZME
2024 Emerging Talent
Ishal Eshna: The Swiss Army Knife
of Digital Ad Operations
NZME
2024 Media Publisher Of The Year
NZME - Media Publisher Of The Year
NZME
Emerging Journalist
of The Year 2024
Kate McVicar
BusinessDesk
News
Matt Nippert: Brain drink or fancy
juice? Start-up strives to prove
health claims
NZ Herald
Features
Cécile Meier: Daycare dollars:
Who's winning and losing?
BusinessDesk
Publications: Gold Medal
The Indian News - 2 March 2023
NZME Ellerslie
Publications: Gold Medal
Valley Voice Rural Lifestyles
- February 2023
NZME Ellerslie
Publications: Gold Medal
NZME Ellerslie Bay Of Plenty
Business News - October 2023
NZME Ellerslie
Publications: Gold Medal
Rural Focus - March 2023
NZME Ellerslie
Publications: Gold Medal
The New Zealand Herald
- 28 March 2023
NZME Ellerslie
Best Use of Print Award
Cyclone Gabrielle:
Special Free Edition
Hawke’s Bay
Today, NZME
2024 awards
IAB Awards
Media Business of the Year
NZME
NZME
Beacon Awards 2024
New Zealand Shareholders Association (NZSA)
Journalism Awards 2024
Pride in Print Awards 2024
Best Photography - Sport
Brett Phibbs
PhibbsVisuals,
Photosport,
NZ Herald / NZME
Photographer of the Year
Michael Craig
NZ Herald / NZME
Reporter of the Year
Sam Sherwood
NZ Herald / NZME
Regional Newspaper of the Year
Hawke's Bay Today
NZME
Weekly Newspaper of the Year
Weekend Herald
NZME
Metropolitan Newspaper
of the Year
NZ Herald
NZME
Voyager Newspaper of the Year
Hawke's Bay Today
NZME
Voyager Media Awards
INMA Global Media Awards
48 NEW ZEALAND MEDIA AND ENTERTAINMENT
Best News or Sports Journalist
Aaron Dahmen
Newstalk ZB
Best Society & Culture Podcast
Between Two Beers
The ACC
Best Commercial Campaign
Confinement Escape Rooms Taupo
The Hits
Best Business Podcast
Cooking the Books
with Frances Cook
BusinessDesk
Best News or Sports Story
- Team Coverage
Cyclone Gabrielle
Newstalk ZB
Best Video - Short Form
Gig-A-Little
Radio Hauraki
Best Client Promotion/Activation
Heartland Chip with Backbone
Radio Hauraki
Best Pacific Podcast
Island Roots, Auckland Ways
Flava
Best Music Network Host
Lorna Plant (joint winner)
Coast
Best Talk Presenter
- Non-Breakfast or Drive
Marcus Lush Nights
Newstalk ZB
Best Marketing Campaign
Matt & Jerry - Xmas Podcast on Vinyl
Radio Hauraki
Outstanding Contribution to Radio
Mike Regal
Radio Wanaka
Network / Metropolitan Station
of the Year
Newstalk ZB
Newstalk ZB
Best Newsreader
Niva Retimanu
Newstalk ZB
Best History
& Documentary Podcast
No Such Thing as Normal
NZ Herald,
iHeartRadio
Best Podcast Producer
or Producing Team
NZ Herald Podcast Network
NZ Herald,
iHeartRadio
Sales Team of the Year
NZME Christchurch
NZME
Associated Craft
NZME Vision
NZME
David Mackrell
Chief Financial Officer of the Year
NZME
New Zealand CFO Summit and Awards - Brightstar
Radio and Podcast Awards 2024
Established Journalist
Sasha Borissenko: Chewing the
Facts Episode Five: Going Under
the Knife
NZ Herald / NZME
Science Journalism Awards - Science Media Centre
Best Sponsorship & Partnership
NZME x One NZ Warriors 2023
Partnership
NZME
Best Content Director
/Content Team
Ross Flahive
ZM
Best Health & Wellbeing Podcast
Sex.Life
ZM
Best Marketing Campaign
Sex.Life
ZM
Best Sports Podcast
The ACC Agenda Podcast
The ACC
Best Podcast by a Radio Show
The Matt & Jerry Show
Radio Hauraki
Best Talk Presenter
- Breakfast or Drive
The Mike Hosking Breakfast
Newstalk ZB
Best Show Producer or Producing
Team - Talk Show
The Mike Hosking Breakfast
Newstalk ZB
Best Comedy Podcast
Tom Sainsbury's Small Town Scandal
iHeartRadio
Podcast of the Year
Tom Sainsbury's Small Town Scandal
iHeartRadio
Best Podcast Technical Production
Tom Sainsbury's Small Town Scandal
iHeartRadio
Best Sports Reader, Presenter
or Commentator
Weekend Sport with Jason Pine
Newstalk ZB
Best Digital Content
ZM Online
ZM
Best Music Network Breakfast Show
ZM's Fletch, Vaughan & Hayley
ZM
Best Network Station Promotion
ZM's Girl Math
ZM
The Blackie Award
ZM's Girl Math
ZM
Services to Broadcasting
Tim Dower
Newstalk ZB
Services to Broadcasting
Jenny Mulligan
NZME
ANNUAL REPORT 2024 49
Barbara Chapman
Independent Chairman
Barbara Chapman served as Chief Executive and
Managing Director of ASB Bank Limited from 2011 until
February 2018. She has extensive business experience
gained through a successful career in banking and
insurance. During her career she has held a number of
senior and executive roles in retail banking, marketing,
communications, human resources and life insurance.
Barbara is passionate about people and culture, and
promoting best practice in community, governance
and sustainability. She is the Chairman of Genesis
Energy Limited, Deputy Chair of The New Zealand
Initiative and holds an independent directorship on
the board of Fletcher Building Limited and Bank of
New Zealand.
Barbara was appointed Chairman of the NZME Board
in June 2020.
Carol Campbell
Independent Director
Carol Campbell is a Chartered Accountant and Fellow
of CAANZ, and chartered member of the Institute of
Directors. Carol was a partner at Ernst & Young for
over 25 years and has been a professional director
for the last 10 years. Carol has extensive financial
experience and a sound understanding of efficient
board governance and chairs NZME’s Audit and Risk
Committee.
Carol is a director on the board of T&G Global Limited,
Asset Plus Limited and Chubb Insurance Limited.
NZME board
50 NEW ZEALAND MEDIA AND ENTERTAINMENT
David Gibson
Independent Director
David has more than 20 years’ investment banking
experience, including as Co-Head of Investment Banking in
New Zealand for Deutsche Bank and Deutsche Craigs where
he completed a number of New Zealand’s largest M&A and
equity transactions, including within the media industry.
David is currently Deputy Chair of Goodman (NZ) Limited
and a Director of Freightways, Rangatira Limited and Contact
Energy Limited.
David holds a Bachelor of Laws (Honours) and Bachelor
of Commerce from the University of Canterbury.
Sussan Turner
Independent Director
For the past 25 years Sussan has held senior leadership
roles across media companies, including Group CEO of
MediaWorks, Managing Director of Radio Otago and CEO
of RadioWorks. She is currently Group CEO and Director of
Aspire2 Group Limited, one of the leading private tertiary
education groups in New Zealand and is passionate about
building executive teams and company cultures.
Guy Horrocks
Independent Director
Guy established himself as an early pioneer of the mobile
app industry co-founding the world’s first commercial
iPhone app company in 2007, Polar Bear Farm. He is one
of a number of high powered, experienced New Zealand
entrepreneurs who’ve built internationally successful digital
enterprises. With clients including Expedia, DreamWorks,
HBO, OREO, CNN, Time Magazine as well as NZ Herald,
Horrocks helped launch over 100 mobile apps with his award
winning mobile agency Carnival Labs, many of which were
featured by Apple.
Guy Horrocks has since launched a new real-time data
warehouse called SOLVE and is also a director of New
Zealand Mint Limited and Jade Technology.
ANNUAL REPORT 2024 51
NZME
executive team
Michael Boggs
Chief Executive Officer
Michael leads New Zealand Media
and Entertainment (NZME) as Chief
Executive Officer since March 2016,
following his role as the company's
Chief Financial Officer. Under his
leadership, NZME continues to
execute a comprehensive growth
strategy, accelerating development
across the group's brands with
particular focus on subscription and
classified offerings, digital and video
content, while ensuring sustainable
growth of our traditional print and
radio platforms.
His extensive executive experience
includes serving as Chief Financial
Officer at Tower Limited, where he
managed multibillion-dollar assets,
Pacific Islands operations, the
earthquake recovery programme,
and the strategic divestment of
Tower's life insurance, health
insurance and investment
management businesses.
This transformative work earned
him CFO of the Year at the 2014
New Zealand CFO Awards.
Michael brings significant
telecommunications and technology
sector expertise from executive roles
in finance, commercial and business
functions at major organisations,
including Telstra's New Zealand
operations.
Greg Hornblow
Chief of OneRoof
Greg serves as Chief of OneRoof since
January 2023, bringing over 30 years
of commercial experience working
alongside real estate professionals,
and in advertising and marketing,
including previous roles at NZME.
His extensive industry expertise and
deep understanding of the real estate
sector have been instrumental in driving
OneRoof's growth and innovation.
Greg's collaborative leadership
approach and passion for the
industry continue to create enhanced
value for our agent partners, while
strengthening OneRoof's position as
a leading property platform in New
Zealand's dynamic real estate market.
Carolyn Luey
Chief Digital and
Publishing Officer
Carolyn serves as our Chief Digital and
Publishing Officer since August 2021,
returning to NZME after previously
serving as Chief Operating Officer
until December 2016. Following
her initial tenure, she held senior
transformational roles at MYOB and
served as Chief Consumer Officer
at Vodafone.
With extensive experience as a strategic
business leader across New Zealand's
telecommunications, technology and
media sectors, Carolyn brings deep
expertise in digital transformation
and audience engagement. Carolyn
brings a wealth of knowledge and
understanding of how best NZME can
grow digital audiences, subscriptions
and revenues.
52 NEW ZEALAND MEDIA AND ENTERTAINMENT
David Mackrell
Chief Financial Officer
David serves as NZME's Chief
Financial Officer since March 2019,
leading our Finance, Technology,
Legal and Strategy functions. He
joined us from Heartland Bank where
he served as Chief Financial Officer.
David began his career at Ernst &
Young as an Auditor before joining
Air New Zealand in 1992. His 25-year
tenure there encompassed numerous
senior financial and commercial
roles, culminating as Deputy Chief
Financial Officer.
In September 2024, David was
named CFO of the Year at the
Brightstar CFO of the Year awards
and was a finalist in the CFO category
for the Deloitte Top 200 awards.
Katie Mills
Chief Marketing Officer
Katie leads NZME's Marketing,
Creative and Communications
functions since joining our Executive
Team in December 2018. She
previously served as Group Marketing
Director at Aspire2 Group Limited and
General Manager (Global) Marketing
& Communications at Opus
International Consultants.
Katie brings more than 20 years
of media-specific experience
to her role, including 15 years at
MediaWorks in senior leadership
positions. As Head of Marketing,
she successfully developed and
delivered marketing and brand
strategies across radio, digital,
event and television ventures.
Katie was named a finalist for
Marketer of the Year at the 2024
NZ Marketing Awards.
Jason Winstanley
Chief Audio Officer
Jason serves as Chief Audio Officer
since 2021, building on nearly
20 years of radio leadership within
NZME. With one of New Zealand's
most comprehensive radio leadership
backgrounds, he has successfully led
multiple music brands, including five
years as Content Director of The Hits
before heading Newstalk ZB, where
he drove record audience growth and
commercial success.
As Chief Audio Officer, Jason
leads NZME's radio and digital
audio strategy, focusing on the
iHeartRadio streaming platform and
NZME Podcast Network. Under his
leadership, NZME has emerged as
New Zealand's leader in local digital
audio content and commercial
opportunities, while his empowering
leadership style drives innovation
across our audio platforms.
James Butcher
Chief Commercial Officer
James serves as Chief Commercial
Officer since February 2024,
following three years as Head of
Digital Audio. He leads NZME's
commercial strategy, overseeing
nationwide advertising solutions for
agency and direct customers, across
commercial integration, sponsorship
and creative strategy as well as
responsibility for partnerships and
B2B marketing.
With over 20 years of senior
leadership experience across media
sales and agency sectors in New
Zealand, the UK, and Australia,
James brings proven expertise in
digital transformation. At NZME,
he transformed our terrestrial radio
business into a digital-first audio
powerhouse, while his industry
leadership earned him the IAB
'Service to The Industry' Award
in 2020.
Chris Wallace
Chief People Officer
Chris Wallace serves as our Chief
People Officer, joining in April 2024.
Chris brings extensive HR, strategy
and operations experience from
roles across New Zealand and
internationally, including Air New
Zealand, Westpac, Samsung
Electronics and Bank of China.
He specialises in leading dynamic
organisations with a people focus
on diversity, development and
engagement.
As Chief People Officer, Chris leads
our Culture and Performance team,
overseeing HR, wellness, health
and safety, property and facilities,
recruitment, employer brand, and
learning and development initiatives.
ANNUAL REPORT 2024 53
GOVERNANCE FRAMEWORK
NZME Limited (“the Company”) is listed on the
NZX Main Board and has a Foreign Exempt Listing
on the ASX (both under the ticker code “NZM”).
The ASX Foreign Exempt Listing category is
based on a principle of substituted compliance
recognising that, for secondary listings, the
primary regulatory role and oversight rests
with the home exchange and the supervisory
regulator in that jurisdiction. As such, the
company is required to comply with a limited
set of ASX Listing Rules.
The Company’s Corporate governance
framework, as described in this section, therefore
primarily takes into consideration contemporary
standards in New Zealand, incorporating the
NZX Corporate governance Code (“NZX Code”).
NZME Limited and its subsidiary companies
(“the Group”) is committed to having a strong
governance framework and therefore complies
with the recommendations of the NZX Code
(unless specifically stated otherwise).
The Corporate governance policies referred
to in this section reflect the Group’s governance
framework as at 31 December 2024 (unless
otherwise stated) and are available on the
Company’s website. The Board of the
Company has approved this Corporate
governance statement.
PRINCIPLE 1
CODE OF ETHICAL BEHAVIOUR
Directors should set high standards of ethical
behaviour, model this behaviour and hold
management accountable for these standards
being followed throughout the organisation.
Code of Conduct & Ethics
The Company’s Code of Conduct & Ethics
governs the Company and its subsidiaries’
commercial operations and the conduct of
directors, employees, consultants and all other
people when they represent the Company and
its subsidiaries. The Code of Conduct & Ethics
comprises certain fundamental principles and
demonstrates the high standards of conduct
expected of us. The current Code of Conduct
& Ethics was updated in June 2023.
Reporting of breaches of the Code is encouraged
and steps for doing so are set out in the Code of
Conduct & Ethics and the Whistleblower Policy.
During 2024, the Company has provided training
on the Code of Conduct & Ethics in the form of
online training emailed to all staff.
The Company also has an Editorial Code of Ethics
which was extensively reviewed during 2022 to
align with international best practice, and was
updated in 2023 to incorporate reference to
Artificial Intelligence. This Code is published on
the Company’s website and highlights the Group’s
principal responsibility to the truth – and to its
communities and audiences – and the Group’s
commitment to journalism of the highest quality
possible that earns the trust of its audiences. The
Code states the Group’s belief that freedom of
the press and dissemination of editorial content
is a cornerstone of a healthy, thriving democracy.
The Code includes the Group’s responsibilities
in relation to accuracy, independence, opinion,
editing, diversity, conduct and integrity.
Corporate
governance
54 NEW ZEALAND MEDIA AND ENTERTAINMENT
Securities Trading Policy
The Securities Trading Policy, which was reviewed
and updated based on best practice in 2022 and
is available on the Company’s website, details the
Company’s trading policy and guidelines, including
trading restrictions on dealing in the Company’s
quoted financial products. This policy applies to
the directors and all employees and contractors
of the Group.
The Securities Trading Policy places additional
trading restrictions on the directors of the
Company, the Chief Executive Officer (“CEO”)
and their direct reports (and employees reporting
directly to them), all administrative staff of the
CEO and direct reports referred to above and
anyone else notified by NZME’s General Counsel.
PRINCIPLE 2
BOARD COMPOSITION
& PERFORMANCE
To ensure an effective Board, there should be
a balance of independence, skills, knowledge,
experience and perspectives.
Role of the Board and Board Charter
The business and affairs of the Company is
managed under the direction and supervision
of the Board currently comprised (and as at
31 December 2024 was comprised) of
independent Chairman, Barbara Chapman, and
independent directors; Carol Campbell, David
Gibson, Sussan Turner and Guy Horrocks. The
directors acknowledge their duty to act in good
faith and in the best interests of the Company.
The objective of the Company is to generate growth,
corporate profit and shareholder gain from the
activities of the Group. In pursuing this objective,
the role of the Board is to assume accountability
for the success of the Company by taking overall
responsibility for the strategic direction and
monitoring of operational management of the Group
in accordance with good corporate governance
principles. More details regarding the main functions
of the Board and the distinction from the roles of
management can be found in the Board Charter
available on the Company’s website.
No person ceased to be a director of the Company
during the financial year ended 31 December 2024.
Director Nomination and Appointment
Directors are appointed by the Company’s
shareholders, with rotation and retirement being
determined by the Company’s constitution.
The Board may appoint directors to fill casual
vacancies. Directors appointed to fill casual
vacancies are required to retire and stand for
election at the first annual shareholders’ meeting
after their appointment. The People, Remuneration
and Nominations Committee recommends to the
Board potential candidates for appointment as
directors. The Committee follows the nomination
and appointment processes set out in the People,
Remuneration and Nominations Committee
Charter available on the Company’s website.
The Company enters into written agreements
with each newly appointed director establishing
the terms of their appointment.
Director Independence and Profiles
All of the Company’s directors, including the
Chair, are independent directors for the purposes
of the NZX Listing Rules as none of them are
executives of the Company or have direct or
indirect interests, positions, associations or
relationships that could reasonably influence,
or could reasonably be perceived to influence,
in a material way, their capacity to bring an
independent view to decisions, act in best
interests or represent the interests of the
Company’s financial product holders generally.
In its determination of the directors'
independence, the Board has considered
(among other factors), the factors in table
2.4 of the NZX Corporate Governance Code
and understands none of such factors are
applicable to any director on the Board.
The profile for each director is available on
the Company’s website and on page 50 - 51.
Information about director attendance at
meetings and the date of appointment of each
director is available on page 57 and page 59.
Information about director ownership interests
is set out on page 65.
Diversity and Inclusion
The Group believes that a diverse and inclusive
workforce is essential for it to be able to deliver
its strategic objectives and continue to meet its
responsibilities to its customers, its employees,
the communities in which it works, and its
shareholders.
ANNUAL REPORT 2024 55
The Group is currently operating in accordance
with, and applying the principles of, its Diversity
and Inclusion Policy which is available on the
Company’s website.
The Our People section on pages 22 - 25 sets
out more detail about the Group’s diversity
and inclusion objectives and progress towards
achieving them. In accordance with the Diversity
and Inclusion Policy, the Board assesses those
objectives and the Group’s progress towards
achieving them on an annual basis. The Board
is comfortable with the Company’s 2024
performance with respect to its Diversity and
Inclusion Policy and objectives but notes the
ongoing nature of efforts to meet those objectives.
The table below includes the quantitative
breakdown as to the gender composition
of the Group’s Board and Officers as at
31 December 2024.
As at
Board
Officers 1
Male
Female
Gender
Diverse
Male
Female
Gender
Diverse
31 December 2024
2
3
0
6
2
0
31 December 2023
2
3
0
4
3
0
Director Access to Training, Information
and Advice
On appointment the Company’s directors
are offered induction training as to their
responsibilities and to enable the director to
become familiar with the Company’s operations
and sites. Further training on pertinent topics
is provided to the Board during the year.
All directors have access to the advice and
assistance of the General Counsel on the Board’s
affairs and governance matters. In addition,
all directors may access such information and
seek independent advice to the extent they
consider it necessary to fulfil their duties and
responsibilities.
Performance Review
The Chair meets annually with directors of the
Company to discuss their performances.
The Board reviews its performance as a whole,
and the performance of its committees, on an
annual basis. The Board may choose to use
external facilitators, where appropriate, to assist
with reviewing the performance of directors,
the Board and its Committees.
PRINCIPLE 3
BOARD COMMITTEES
The Board should use committees where this
will enhance its effectiveness in key areas,
while retaining Board responsibility.
The Board has two standing Committees;
the Audit & Risk Committee and the People,
Remuneration and Nominations Committee,
to assist in carrying out its responsibilities.
The Committees operate under Board
approved charters which are available
on the Company’s website.
The Board may establish other committees
from time to time to deal with specific
projects or matters relating to the Company’s
various activities.
The Board does not have a separate Health
and Safety Committee, but Health and Safety
is considered by the full Board.
The Board did not identify a need for any other
standing Board committees during the year
ended 31 December 2024.
Continued
Corporate governance
1 The term ‘Officer’ is defined in the NZX Listing Rules as a person, however designated, who is concerned or takes part in the
management of the Issuer’s business, and reports directly to (i) the Board or (ii) a person who reports to the Board. NZME has
interpreted this to mean the Chief Executive and any person reporting to the Chief Executive or the Board directly. The numbers
above therefore include the CEO and other members of the Group Executive Team.
56 NEW ZEALAND MEDIA AND ENTERTAINMENT
The Company also has an NZME Takeover
Response Manual (not publicly available)
as recommended by Recommendation 3.6
of the NZX Code.
Audit & Risk Committee
The Committee consists of three independent
directors (one of whom has an accounting and
financial background). The functions of the Audit
& Risk Committee are to:
•
Review, consider and if necessary, investigate
any reports or findings arising from any audit
function either internally or externally;
•
Evaluate financial information and climate
reporting submitted to it, along with relevant
policies and procedures; and
•
Assess the effectiveness of risk management
throughout the Group.
The Committee is also responsible for
communicating and engaging with the external
auditors and for oversight and review of the risk
management framework. For further information,
also refer to the Committee’s charter which is
available on the Company’s website.
As at 31 December 2024, independent directors
Barbara Chapman and David Gibson were
members of the Audit & Risk Committee and it was
chaired by independent director Carol Campbell.
Employees and external parties may attend
meetings of the Audit & Risk Committee at the
invitation of the Audit & Risk Committee.
People, Remuneration and Nominations
Committee
The People, Remuneration & Nominations
Committee ensures that remuneration policies
and practices are consistent with the strategic
goals of the Group and are relevant to the
achievement of those goals. The Committee
also reviews the remuneration of the CEO and,
in consultation with the CEO, the remuneration
packages of members of the Group Executive
Team reporting directly to the CEO.
The People, Remuneration & Nominations
Committee also makes recommendations to
the Board regarding the composition of the
Board, filling of vacancies, appointing additional
directors to the Board, and to review and adopt
Corporate governance policies and practices
which reflect contemporary standards in
New Zealand, incorporating principles and
guidelines issued by the Financial Markets
Authority and the NZX. For further information,
refer to the Committee’s charter available on
the Company’s website.
This charter was updated to reflect current best
practice in December 2022 including changing
the name of the committee previously known as
the Governance and Remuneration Committee.
As at 31 December 2024, independent directors
Sussan Turner and Guy Horrocks were members
of the People, Remuneration & Nominations
Committee and it was chaired by independent
director David Gibson. Employees and external
parties may attend meetings of the People,
Remuneration & Nominations Committee at
the invitation of the People, Remuneration &
Nominations Committee.
Board & Committee Attendance 1 January 2024 to 31 December 2024
Director
Board
Audit & Risk
People, Remuneration
and Nominations
Barbara Chapman
9 of 9
4 of 4
N/A
Carol Campbell
9 of 9
4 of 4
N/A
David Gibson
9 of 9
4 of 4
4 of 4
Guy Horrocks
9 of 9
N/A
4 of 4
Sussan Turner
8 of 9
N/A
3 of 4
ANNUAL REPORT 2024 57
PRINCIPLE 4
REPORTING & DISCLOSURE
The Board should demand integrity in financial
and non-financial reporting, and in the
timeliness and balance of corporate disclosures.
Market Disclosure Policy
The Board has policies and procedures in place
to keep investors and staff informed of material
information about the Company and to ensure
compliance with the continuous disclosure
obligations under the Financial Markets Conduct
Act 2013 and the NZX Listing Rules.
The Market Disclosure Policy (available on the
Company’s website) is designed to ensure that:
•
There is full and timely disclosure of the
Company’s activities and price sensitive
information to shareholders and the market; and
•
All stakeholders (including shareholders,
the market and other interested parties) have
an equal opportunity to receive and obtain
externally available information issued by
the Company.
The Company will immediately notify the market
of any material information concerning the
Company in accordance with legislative and
regulatory disclosure requirements.
Corporate governance documents
The following documents have been adopted
by the Company and are available on the
Company’s website under the Corporate
governance section:
•
Company Constitution
•
Board Charter
•
Code of Conduct & Ethics
•
Remuneration Policy
•
Diversity and Inclusion Policy
•
Editorial Code of Ethics
•
Fraud Policy
•
Market Disclosure Policy
•
Whistleblower Policy
•
Securities Trading Policy
•
Audit & Risk Committee Charter
•
People, Remuneration and Nominations
Committee Charter
•
Risk Management Policy
•
Health and Safety Policy
•
Modern Slavery Statement (pursuant
to Australian legislation)
Financial Reporting and Disclosure
The Company is committed to providing
financial reporting that is balanced, clear and
objective. The Audit & Risk Committee oversees
the quality, integrity and timeliness of external
financial reporting. The Group’s Consolidated
Financial Statements for the year ended
31 December 2024 are set out on pages 70 -
119. Also refer to the reports from the Chair and
the CEO in this Annual Report and the NZME Full
Year 2024 Results Presentation (available on the
Company’s website) for additional information.
The Group’s Consolidated Financial Statements
are audited by the Company’s external auditor,
PricewaterhouseCoopers.
Non-Financial Reporting and Disclosure
The Company provides non-financial disclosures
relating to health and safety, risk management
and sustainability, including its interaction
with its communities, people and environment
– see the Group’s Sustainability Commitment
on page 16. Pursuant to the Financial Sector
(Climate-related Disclosure and Other Matters)
Amendment Act 2021 the Company makes
climate- related disclosures on pages 27 - 46.
The Company’s GHG emissions have been
subject to independent assurance.
Non-financial information included in this
Annual Report and other non-financial
disclosures reported by the Company that
have not been audited or the subject of external
assurance are internally verified and checked
by the Company’s management team, compared
to the previous reporting period and cross-
checked against other data.
Continued
Corporate governance
58 NEW ZEALAND MEDIA AND ENTERTAINMENT
PRINCIPLE 5
REMUNERATION
The remuneration of directors and executives
should be transparent, fair and reasonable.
Remuneration Policy
The Company’s Remuneration Policy (available
on its website) outlines the Company’s
approach to the remuneration of its directors
and executives. The People, Remuneration
& Nominations Committee is responsible for
reviewing non-executive directors’ remuneration
and benefits. The pool available to be paid
to non-executive directors is subject to
shareholder approval and is currently fixed
at $900,000 per annum (as set out in the
Explanatory Memorandum for the Demerger of
NZME by APN dated 11 May 2016).
The levels of fixed fees payable to non-executive
directors reflects the time commitment
and responsibilities of the role. The People,
Remuneration & Nominations Committee
obtains independent advice, as necessary, and
considers the results of market comparison and
a benchmarking assessment in setting the fixed
fees payable to non-executive directors.
While the Company does not pay equity-based
remuneration to its non-executive directors, it
encourages those directors to hold shares in
the Company to better align their interests with
the interests of other shareholders. The People,
Remuneration & Nominations Committee is also
responsible for reviewing the remuneration package
of the CEO and, in consultation with the CEO, the
remuneration packages of members of the Group
Executive Team reporting directly to the CEO.
The Company conducts external benchmarking
analysis to determine the market rate for a
role. The Company provides a combination of
cash and non-cash benefits and takes a total
remuneration approach. The Company reviews
remuneration with the objective of achieving pay
equality, including by gender.
Directors’ Remuneration:
The fees paid to each director depend on the
duties of the director, including committee
work. The current fees per annum for 2024
were as follows:
1 January 2024 to 31 December 2024
Fees ($)
Chairman of the Company Board
170,000
Membership of the Company Board
100,000
Chairman of Company Board Committees
20,000
Membership of Company Board Committees
10,000
Membership of OneRoof Advisory Committee
7,500
Total fees paid to each director during 2024 are shown in the following table:
Date
appointed
Chairman
of the
Board ($)
Board
Member
($)
Committee
Chair ($)
Committee
Member
($)
Advisory
Committee
($)
Total
($)
Barbara Chapman
18 April 2018
170,000
10,000
180,000
Carol Campbell
24 June 2016
100,000
20,000
120,000
David Gibson
8 December
2017
100,000
10,000
130,000
Guy Horrocks
8 February
2021
100,000
10,000
7.500
117,500
Sussan Turner
16 July 2018
100,000
10,000
7,500
117,500
Total fees paid 2024
665,000
ANNUAL REPORT 2024 59
In October 2024, in the recommendation of
the People, Remuneration and Nominations
Committee, the Board resolved to approve
a 3% increase to all current Director fees
(including Chairman, Director and Committee
fees), effective 1 January 2025. There has been
no change to the Directors fee pool.
Directors are also entitled to be reimbursed for
all reasonable travel, accommodation and other
costs incurred by them in connection with their
attendance at Company Board or shareholder
meetings or otherwise in connection with
Company business. Any such amounts are
not included in the table above.
Chief Executive Officer’s Remuneration
Year
Salary A
Benefits B
Subtotal
Bonus C
Shares
(TIP) D
Subtotal
Remuneration
(paid)
2024
872,859
26,186
899,045
-
992,428
992,428
1,891,473
2023
873,088
35,760
908,848
318,906
1,585,259
1,904,165
2,813,012
Five Year Summary - CEO Remuneration (earned)
Year
Salary and
benefits AB
Bonus
(STI) E
Shares
(STI) F
STI
Subtotal
Shares
LTIP G
Total
Remuneration
(earned)
Percentage
STI against
maximum H
2024
899,045
338,044
258,744
596,788
1,495,833
58.4%
2023
908,848
-
-
-
908,848
-
2022
919,732
318,906
471,707
790,613
1,710,345
80.5%
2021
886,906
428,820
428,820
428,820
1,744,546
76.4%
2020
887,837
478,164
478,164
478,165
1,844,166
85.1%
Shares and Rights
Michael Boggs held 2,988,774 shares in the company as at 31 December 2024, In addition to the
remuneration disclosed above as at 25 February 2025, Michael Boggs held 1,196,763 performance
rights issued to him under the various TIP schemes. Please refer to note 4.3 of the Consolidated
Financial Statements for a summary of the TIP and the performance criteria used to determine
performance based payments.
Continued
Corporate governance
A Salary includes normal basic salary and paid leave. B Benefits relate to company contributions to Kiwisaver. C Bonus payments
are those paid during the current accounting period and excludes any bonus accrual not yet paid. D Shares (TIP) includes the
gross benefit of the rights issue including PAYE payable in relation to the benefit paid. For the 2024 year this relate to shares
issued on 31 December 2024 in relation to the 2021 Total incentive Plan ("TIP") and shares issued in relation to the 2022 short
term incentive. The 2021 TIP shares were originally valued based on a share price of $0.737 but were valued at $1.06 at the time
of issue and accordingly the higher value is recorded as remuneration for the year. For the 2023 this relates to shares issued on
3 January 2024 (with an exercise date of 31 December 2023) in relation to the 2020 Total incentive Plan ("TIP"). The 2020 TIP
shares were originally valued based on a share price of $0.398 but were valued at $1.06 at the time of issue and accordingly the
higher value is recorded as remuneration for the 2023 year. E Bonus payments earned for the year. F Since 2022 the incentive
scheme has a portion of the short term incentive which is in the form of performance rights which vest 12 months after the
conclusion of the performance period. G For the 2020 and 2021 TIP schemes the rights vested in 2021 and 2022 respectively
but were issued after a two year deferral period. For the purpose of the amount earned the shares are valued at the price in the
time of the scheme invitation. During the period from vesting to being exercised additional rights were awarded for dividends
foregone during this period. H Value of bonus and rights awarded for the year as a percentage of the maximum award available.
60 NEW ZEALAND MEDIA AND ENTERTAINMENT
Remuneration Amount
Employees
Remuneration Amount
Employees
$100,000 - $110,000
89
$280,001 - $290,000
1
$110,001 - $120,000
68
$300,001 - $310,000
5
$120,001 - $130,000
67
$310,001 - $320,000
1
$130,001 - $140,000
53
$320,001 - $330,000
1
$140,001 - $150,000
48
$330,001 - $340,000
1
$150,001 - $160,000
34
$350,001 - $360,000
3
$160,001 - $170,000
29
$360,001 - $370,000
3
$170,001 - $180,000
18
$380,001 - $390,000
1
$180,001 - $190,000
23
$410,001 - $420,000
1
$190,001 - $200,000
6
$450,001 - $460,000
1
$200,001 - $210,000
13
$480,001 - $490,000
2
$210,001 - $220,000
11
$500,001 - $510,000
1
$220,001 - $230,000
5
$510,001 - $520,000
2
$230,001 - $240,000
5
$560,001 - $570,000
1
$240,001 - $250,000
7
$610,001 - $620,000
1
$250,001 - $260,000
9
$920,001 - $930,000
1
$260,001 - $270,000
12
$1,890,001 - $1,900,000
1
$270,001 - $280,000
4
Total number of employees that were paid remuneration of $100,000+
528
The remuneration above includes all remuneration
paid to permanent employees, including fixed
remuneration, employer KiwiSaver contributions,
medical aid contributions, bonuses, commission,
settlements and redundancies.
PRINCIPLE 6
RISK MANAGEMENT
Directors should have a sound understanding of
the material risks faced by the issuer and how to
manage them. The Board should regularly verify
that the issuer has appropriate processes that
identify and manage potential and material risks.
Risk Management Framework
The Audit & Risk Committee is responsible for
the oversight and independent review of the
Group’s risk management framework, including:
•
Review and approval of the risk management
policy;
•
Receiving and considering reports
on risk management;
•
Assessing the effectiveness of the Group’s
responses to risk; and
•
Providing the Board with regular reports
on risk management.
The Group has a formal Risk Management
Policy (available on the Company’s website)
and is committed to the consistent, proactive
and effective monitoring and management of
risk throughout the Group, in accordance with
best practice and the NZME Risk Management
Framework and Guidelines.
The Board is ultimately responsible for the
effectiveness, oversight and implementation
of the Group’s approach to risk management.
ANNUAL REPORT 2024 61
The CEO is responsible for:
•
The management of strategic, operational and
financial risk of the Group;
•
Continually monitoring the Group’s progress
against financial and operational performance
targets;
•
The day-to-day identification, assessment and
management of risks applicable to the Group;
•
Implementation of risk management controls,
processes, policies and procedures appropriate
for the Group; and
•
Driving a culture of risk management
throughout the Group.
The Company’s Risk Committee (a management
committee) acts as a governance forum to assist
the CEO and the Group Executive Team in fulfilling
their Corporate governance responsibilities.
This Committee provides assurance that the
following aspects are managed appropriately:
•
Strategic and operational risk management;
•
Workplace health and safety matters;
•
Legal, regulatory and policy compliance;
•
Technology and security matters;
•
Climate related risk; and
•
Business continuity planning.
The Group is a diversified media company and is
subject to diverse types of risk including, but not
limited to cyber security, legal and regulatory
compliance, financial and market, climate risk,
government policy and political, reputation and
brand, operational risks and trading conditions.
The Group recognises that in order to achieve
its strategic objectives it must be willing to take
and accept informed risks. Taking risks relating
to innovation, attracting and retaining talent,
and content to drive audiences and address the
needs of advertisers is encouraged within defined
parameters. However, the Group does not trade
off financial or strategic returns by compromising
compliance with the law, the safety of its people, or
its reputation as a responsible corporate citizen and
trusted provider of news, sport and entertainment.
When setting the appetite for taking and
accepting risk, the Group also considers the risk
posed by inaction in what is a fast-paced and
disrupted market.
The Group’s approach to risk management is
assessed at least annually by the Audit & Risk
Committee, which makes a recommendation
to the Board on the appropriateness of the
Company’s Risk Management Framework and
Guidelines.
For additional information on financial risks,
also refer to [note 4.7] of the Consolidated
Financial Statements.
Health and Safety
The NZME Board Charter states that the
role of the Board includes ensuring that the
Group’s health and safety practices and culture
comply with legal requirements, reflect best
practice, and are recognised by employees and
contractors as key priorities for the Group.
The Group does not have a separate Board-level
Health and Safety Committee as health and
safety is a standing item on every Board agenda.
The Health and Safety Policy (available on the
Company’s website) sets out the Company’s
health and safety principles and explains that
the Board regularly monitors key health and
safety performance indicators, the effectiveness
of the Company’s health and safety system and
the controls that are in place to manage the risks
that arise from the Group’s operations.
Health and safety is included on the Company’s
Risk Register. The Company’s annual Health and
Safety Plan captures the projects and objectives
for the year to prioritise responses to the
identified risks.
The Company records and monitors critical
health and safety risks in a separate Health and
Safety Risk Register. Currently, that register is
reviewed and monitored by the Company’s Risk
Committee, who meet monthly and receive
and review reporting on health and safety
performance, trends, and updates. Key matters
and progress against the annual Health and
Safety Plan are reported to the Board.
Continued
Corporate governance
62 NEW ZEALAND MEDIA AND ENTERTAINMENT
Throughout 2024, we maintained a strong
focus on leadership safety engagement,
utilising targeted communication channels and
enhanced support systems across the business.
To strengthen contractor management and
improve safety performance monitoring, we
introduced a new contractor prequalification
process, specifically designed for those
engaged in higher-risk activities.
Significant progress was also made in health and
safety reporting and engagement with our Board,
aligning with the latest recommendations from
the Institute of Directors' updated Health and
Safety Guide: Good Governance for Directors.
Employee wellbeing remained a key priority,
with a particular emphasis on mental health
and neurodiversity support. This included the
development of neurodiversity guidelines and
the expansion of mental health support initiatives,
highlighted by the introduction of the Rongoā
Māori Support Program.
These initiatives reflect our ongoing
commitment to fostering a safer, healthier,
and more inclusive workplace.
Health and safety advice and direction are
overseen by the Culture and Performance team
and a full-time Health, Safety and Compliance
Manager.
Engagement in health and safety is monitored
through questions that target employees’ views
and opinions on health and safety initiatives and
their effectiveness, with the use of the Group’s
engagement tool 'HearMe'. This provides
leadership teams with valuable feedback
and insights into areas of concern and where
improvements can be made.
Health and safety training is included in staff
induction and is further expanded through a
range of training workshops to drive awareness
of the Group’s health and safety obligations,
critical risks, and the resources available to
satisfy these.
To ensure effective worker involvement,
the Group has multiple Health and Safety
Committees in place across New Zealand and
health and safety performance is communicated
throughout all levels of the Group through
leadership team meetings and internal business
communications. The Group also has a range
of internally trained Wellbeing Advocates
and Women’s Health Advocates who provide
confidential support and guidance to employees.
PRINCIPLE 7
AUDITORS
The Board should ensure the quality and
independence of the external audit process.
Refer to note 2.2.4 of the Consolidated Financial
Statements for fees paid to the auditors,
PricewaterhouseCoopers, for the year ended
31 December 2024.
The Audit & Risk Committee Charter requires the
Committee to assess:
•
The independence of the auditors;
•
The ability of the auditors to provide additional
services which may be occasionally
required;
•
The competency and reputation of the auditors;
and
•
The projected audit fees.
The charter also requires the Committee to
review the appointment, performance and
remuneration of the auditors.
The Audit & Risk Committee also monitors
and approves any services provided by the
auditors other than in their statutory role and
receives confirmation from the auditors as to
their independence from the Company. This is
undertaken on a service by service basis and
assesses whether the service is permissible
under Professional and Ethical Standard 1 (“PES
1”) issued by the New Zealand Auditing and
Assurance Standards Board, ensuring that any
potential threat to independence is identified
and appropriate safeguards to eliminate the
threat or reduce the threat to an acceptable level
are established. The Audit & Risk Committee also
receives an annual confirmation from the auditor
as to their independence from the Group. The
auditor is also required to provide the Audit &
ANNUAL REPORT 2024 63
Risk Committee with a detailed analysis of fees
relating to non-audit services provided during
the year, including a description of potential
threats to their independence and the applicable
safeguards implemented by the auditor and
Group to either mitigate those threats or reduce
them to an acceptable level as required by PES 1.
The Audit & Risk Committee takes the nature of
the services provided, the quantum of the fee, the
reason for the additional services and whether
the services are likely to be one-off or repetitive
in nature into consideration when evaluating and
concluding on auditor independence.
For the year ended 31 December 2024, given the
nature of the services provided and based on the
Committee’s continuous monitoring of auditor
independence, the Audit & Risk Committee do
not believe that the non-audit services provided
by the auditors compromised their objectivity
and independence.
The Company requires the external auditor
to attend the Annual Shareholders’ Meeting
to answer questions from shareholders in
relation to the audit. The Group’s auditor,
PricewaterhouseCoopers, attended the last
Annual Shareholders’ Meeting on 11 April 2024.
Internal Audit
The Audit & Risk Committee is responsible
for reviewing the integrity and effectiveness
of the internal audit function. NZME operates
a co-sourced internal audit programme that
utilises a mix of self-certifications, scheduled
control testing by Group Financial Services,
ad hoc assignments, investigations by risk and
compliance personnel and a structured internal
audit programme executed by an external firm.
Any reporting from external parties is presented
to the Audit & Risk Committee and any
significant findings from other internal activities
are reported to the Audit & Risk Committee.
PRINCIPLE 8
SHAREHOLDER RIGHTS
& RELATIONS
The Board should respect the rights of
shareholders and foster constructive
relationships with shareholders that encourage
them to engage with the issuer.
In addition to holding its Annual Shareholders’
Meeting, the Company seeks to regularly engage
with shareholders to ensure they are informed
about its activities and the progress against its
stated priorities.
The Company website has a dedicated Investor
Relations section containing NZX / ASX
announcements, presentations and webcasts,
financial reports, frequently asked questions
and other information that might be useful to
Company shareholders.
The share registry is maintained by Link Market
Services and its contact details are available
under the Investor Relations section of the
Company’s website. Shareholders can elect
to receive communications electronically.
Continued
Corporate governance
64 NEW ZEALAND MEDIA AND ENTERTAINMENT
Statutory
disclosures
Following each results announcement, NZME
holds an investor call to present the results and
to allow investors to ask questions. This is usually
followed by an investor roadshow during which
the CEO and other members of the Executive team
to meet with as many shareholders as possible.
Shareholders are entitled to exercise their voting
rights as provided for under the applicable
legislation and listing rules.
In order for shareholders to fully participate
in shareholder meetings, the Board will
endeavour where possible, to distribute a notice
of shareholder meeting as soon as possible and
in any event at least 20 working days prior to
any shareholder meeting. During the financial
year ended 31 December 2024, shareholders
were given 20 working days’ notice of the annual
shareholder meeting of the Company held on
11 April 2024.
Interest Register Entries
In accordance with section 211(1)(e) of the
Companies Act 1993, particulars of general
disclosures of interest in the Interest Register
of NZME for current directors are set out in the
table below.
Director
Position
Company
Barbara Chapman
Chairman
Genesis Energy Limited
Deputy Chair
The New Zealand Initiative
Director
Fletcher Building Limited
Director
Bank of New Zealand
Carol Campbell
Director
Asset Plus Limited
Director
T&G Global Limited
Director
Chubb Insurance New Zealand Limited
David Gibson
Director
Rangatira Limited
Director
Contact Energy Limited
Director
Freightways Group Ltd
Deputy Chair
Goodman Property Trust (NS)
Guy Horrocks
Shareholder
Solve Data Inc.
Director
New Zealand Mint Limited
Shareholder
Tracksuit Limited
Shareholder
Setpoint Technologies Inc.
Shareholder
Ezirent
Director
Jade Technology
Sussan Turner
Director and shareholder
Aspire2 Group Limited
ANNUAL REPORT 2024 65
Disclosures of Directors’ interests in share
transactions
During 2024, no disclosures were made in
the Interests Register by Directors as to the
acquisition or disposal of relevant interests in
Company shares under section 148
of the Companies Act 1993.
Directors’ interests in shares
Ordinary shares held by directors and parties
associated with them are as follows:
Director
Number of shares as at 31 December 2024
Barbara Chapman
73,000
Carol Campbell
150,000
David Gibson
50,000
Use of Company information
No notices have been received by the Board
under section 145 of the Companies Act 1993
with regard to the use of Company information
received bythe Directors in their capacities
as Directors of the Company or its subsidiary
companies.
Indemnities or insurance effected for directors
In accordance with section 162 of the Companies
Act 1993 and the Company’s Constitution,
the Company has indemnified and arranged
insurance for all directors and executive officers
to the extent permitted by law for liabilities
arising out of the performance of their normal
duties as directors and officers. The total amount
of insurance for directors and officers contract
premiums for the period was $687,000.
SUBSIDIARY COMPANY INFORMATION
NZME’s subsidiary companies are listed at Note
6.1 of the Consolidated Financial Statements.
Directors of Subsidiary Companies
As at 31 December 2024, Michael Boggs (CEO)
and David Mackrell (CFO) were directors of the
wholly owned subsidiaries listed in Note 6.1 of the
Consolidated Financial Statements, other than
NZME Australia Pty Limited. Michael Boggs and
Mark O’Sullivan (a professional director resident
in Australia) were directors of NZME Australia
Pty Limited as at 31 December 2024. Michael
Boggs, David Mackrell and Greg Hornblow were
directors of the subsidiary OneRoof Limited.
No person ceased to be a director of any of the
companies listed in note 6.1 of the Consolidated
Financial Statements during the financial year
ended 31 December 2024.
Other than Mark O’Sullivan who received
A$12,000 for his services as a director of
NZME Australia Pty Limited, these directors
did not receive any fees or other benefit for their
services as directors to any of these companies.
Michael Boggs, David Mackrell and Greg
Hornblow receive remuneration as employees
of the Company which are not related to their
duties as directors of these companies.
Entries in interest registers of Subsidiary
Companies
For each subsidiary company in which they act
as a director Michael Boggs and David Mackrell
have made general disclosures of interests in all
other subsidiary companies as a result of their
executive positions at the Company and their
positions as directors of the other subsidiary
companies.
SHAREHOLDER INFORMATION
Substantial product holders
According to notices given to the Company
under the Financial Markets Conduct Act 2013
the following persons were substantial product
holders of the Company as at 31 December 2024.
There were 187,899,804 ordinary shares in the
Company at that date. The Company did not have
any other quoted voting products at that date.
Continued
Statutory disclosures
66 NEW ZEALAND MEDIA AND ENTERTAINMENT
Shareholder
Number of shares in which
relevant interest is held
Date of notice
Repertoire Partners LP
10,000,000
29 August 2024
Spheria Asset Management Pty Ltd
35,702,300
25 March 2024
Osmium Partners LLC
12,265,394
31 July 2024
Pinnacle Investment Management
Group Limited
20,517,147
26 November 2024
Top 20 shareholders
As at 24 February 2025
Rank Investor Name
Total Units
% Issued Capital
1
Citicorp Nominees Pty Limited
35,850,690
19.08
2
FNZ Custodians Limited
16,751,911
8.92
3
HSBC Custody Nominees (Australia) Limited
16,321,217
8.69
4
Bnp Paribas Nominees Pty Ltd
10,442,643
5.56
5
J P Morgan Nominees Australia Pty Limited
9,796,757
5.21
6
HSBC Custody Nominees (Australia) Limited
8,498,660
4.52
7
Accident Compensation Corporation
8,199,001
4.36
8
Bnp Paribas Nominees Pty Ltd
5,694,601
3.03
9
Bnp Paribas Nominees (Nz) Limited
5,280,788
2.81
10
Bnp Paribas Nominees Pty Ltd
4,301,574
2.29
11
Forsyth Barr Custodians Limited
3,309,558
1.76
12
Michael Raymond Boggs
2,988,774
1.59
13
Mmc Queen Street Nominees Ltd Acf Salt Long Short Fund
2,465,261
1.31
14
Abn Amro Clearing Sydney Nominees Pty Ltd
2,086,256
1.11
15
Odyls Pty Ltd
1,860,539
0.99
16
Caniwi Capital Partners Ltd
1,582,218
0.84
17
Mmc Queen Street Nominees Ltd Acf Salt Funds Management
1,553,188
0.83
18
New Zealand Depository Nominee
1,494,728
0.80
19
Bnp Paribas Noms Pty Ltd
1,338,804
0.71
20
Bnp Paribas Nominees Pty Ltd
1,319,399
0.70
Total
141,136,567
75.11
ANNUAL REPORT 2024 67
Spread of Quoted Financial Product holders
As at 24 February 2025
Range of Securities Held
Holders
Holders %
Issued Capital
Issued Capital %
1-1,000
3,182
65.76
772,816
0.41
1,001-5,000
850
17.57
2,139,988
1.14
5,001-10,000
275
5.68
2,165,654
1.15
10,001-50,000
379
7.83
9,004,796
4.79
50,001-100,000
62
1.28
4,543,053
2.42
Greater than 100,000
91
1.88
169,273,497
90.09
Total
4,839
100.00
187,899,804
100.00
OTHER INFORMATION
Waivers from NZX
During the financial year ended 31 December 2024,
the Company was not granted any waivers
from any of the NZX Listing Rules, nor did the
Company rely on any previously granted or
published waiver from the NZX Listing Rules.
Donations
In accordance with section 211(1)(h) of the
Companies Act 1993, NZME notes that the
Group made donations of $1,662 during the
year ended 31 December 2024. In addition,
and as discussed elsewhere in this Annual
Report (our Sustainability Commitment), NZME
regularly donates advertising space and other
services to a number of worthwhile charities.
Credit rating
As at the date of this Annual Report NZME
does not have a credit rating.
Director appointments under the Company's
Constitution
Rule 2.4.1 of the NZX Listing Rules allows a
company to include in its Constitution a right
for a product holder to appoint a director to
the Board under certain circumstances. As at
31 December 2024, none of the Directors were
appointed pursuant to Rule 2.4.1.
Continued
Statutory disclosures
68 NEW ZEALAND MEDIA AND ENTERTAINMENT
ANNUAL REPORT 2024 69
Consolidated
financial statements
For the year ended 31 December 2024
70 NEW ZEALAND MEDIA AND ENTERTAINMENT
*The notes to the financial statements have been grouped into nine sections;
aimed at grouping items of a similar nature together. The basis of preparation
section presents a summary of material information and general accounting
policies that are necessary to understand the basis on which these consolidated
financial statements have been prepared. Accounting policies specific to a
particular note are included in that note and are boxed for ease of reference.
Material accounting estimates and judgments relevant to a particular note are
also included in the relevant note, and are clearly marked as such. A summary
of the material judgments and estimates is also included under the basis of
preparation section on pages 78 to 79.
Contents
Directors' statement
72
Consolidated income statement
73
Consolidated statement of comprehensive income
74
Consolidated balance sheet
75
Consolidated statement of changes in equity
76
Consolidated statement of cash flows
77
Notes to the consolidated financial statements*
1.0 Basis of preparation
78
2.0 Group performance
80
3.0 Operating assets and liabilities
87
4.0 Capital management
100
5.0 Taxation
113
6.0 Group structure and investments in other entities
116
7.0 Related parties
119
8.0 Commitments and contingent liabilities
119
9.0 Subsequent events
119
Independent auditor's report
120
ANNUAL REPORT 2024 71
Directors'
statement
The Directors are pleased to present the consolidated financial statements of NZME Limited
(the "Company") and its subsidiaries (together the "Group") for the year ended 31 December 2024,
incorporating the consolidated financial statements and the independent auditor's report.
The Directors are responsible, on behalf of the Company, for presenting these consolidated
financial statements in accordance with applicable New Zealand legislation and generally
acceptable accounting practices in New Zealand in order to present consolidated financial
statements that present fairly, in all material respects, the financial position of the Group as
at 31 December 2024 and the results of the Group's operations and cash flows for the year
then ended.
The consolidated financial statements for the Group as presented on pages 73 to 119 are
signed on behalf of the Board of Directors, and are authorised for issue on the date below.
For and on behalf of the Board of Directors
Barbara Chapman
Carol Campbell
Chairman
Director
Date: 25 February 2025
72 NEW ZEALAND MEDIA AND ENTERTAINMENT
Note
2024
$’000
2023
$’000
Revenue
2.1
345,924
340,752
Finance and other income
2.1
4,709
6,889
Total revenue and other income
2.1
350,633
347,641
People costs
(149,777)
(146,648)
Print and distribution
(51,826)
(50,755)
Selling and marketing
(39,328)
(36,055)
Content
(21,250)
(19,667)
Property
(7,479)
(7,461)
Third party fulfilment costs
(4,737)
(6,532)
Technology and communications
(11,826)
(11,008)
Other expenses
(14,283)
(14,870)
Expenses from operations before finance costs, depreciation,
amortisation and impairment
(300,506)
(292,996)
Depreciation and amortisation
2.2.2
(29,886)
(28,623)
Finance costs
2.2.3
(7,800)
(7,656)
Share of joint ventures and associates net loss after tax
6.2.2
(210)
(588)
Impairment of intangible assets
3.1
(24,000)
-
Impairment of equity accounted investments
6.2.2
(733)
-
(Loss) / profit before income tax expense
(12,502)
17,778
Income tax expense
5.1
(3,538)
(5,578)
Net (loss) / profit after tax
(16,040)
12,200
(Loss) / profit for the year is attributable to:
Owners of the Company
(16,040)
12,789
Non-controlling interest
-
(589)
(16,040)
12,200
Cents
Cents
Earnings per share attributable to the ordinary shareholders of the Company
Basic (loss) / earnings per share
2.3
(8.59)
6.95
Diluted (loss) / earnings per share
2.3
(8.50)
6.69
The above consolidated income statement should be read in conjunction with the accompanying notes.
Consolidated
income statement
For the year ended 31 December 2024
ANNUAL REPORT 2024 73
For the year ended 31 December 2024
Consolidated statement
of comprehensive income
Note
2024
$’000
2023
$’000
Net (loss) / profit after tax
(16,040)
12,200
Other comprehensive income
Items that may be reclassified to profit or loss
Effective loss on hedging instruments
-
(1)
Reclassification to profit or loss
-
(204)
Loss on hedging instruments
-
(205)
Net exchange differences on translation of foreign operations
4.2
6
(2)
Items that will not be reclassified to profit or loss
Revaluation of freehold land and buildings
3.2
353
-
Other comprehensive income / (loss), net of tax
359
(207)
Total comprehensive (loss) / income
(15,681)
11,993
Total comprehensive (loss) / income attributable to:
Owners of the Company
(15,681)
12,582
Non-controlling interest
-
(589)
(15,681)
11,993
The above consolidated statement of comprehensive income should be read in conjunction with the
accompanying notes.
74 NEW ZEALAND MEDIA AND ENTERTAINMENT
As at 31 December 2024
Consolidated
balance sheet
Note
2024
$’000
2023
Restated A
$’000
Current assets
Cash and cash equivalents
4.5
4,641
5,524
Trade and other receivables
3.4
41,485
40,407
Inventories
3.5
2,496
5,084
Income taxation
2,524
-
Total current assets
51,146
51,015
Non-current assets
Intangible assets
3.1
115,841
142,445
Property, plant and equipment
3.2
18,218
20,311
Right-of-use assets
3.3
54,710
58,233
Other financial assets
815
815
Equity accounted investments
6.2.2
1,825
2,768
Other receivables and prepayments
3.4
3,946
4,453
Deferred tax asset
5.2
8,064
9,209
Total non-current assets
203,419
238,234
Total assets
254,565
289,249
Current liabilities
Trade and other payables
3.6
44,375
44,190
Current lease liabilities
4.5.2
13,690
12,572
Current tax provision
-
269
Total current liabilities
58,065
57,031
Non-current liabilities
Non-current lease liabilities
4.5.2
66,146
72,105
Interest bearing liabilities
4.5.1
28,731
23,490
Other payables
360
676
Total non-current liabilities
95,237
96,271
Total liabilities
153,302
153,302
Net assets
101,263
135,947
Equity
Share capital
4.1
346,698
345,365
Reserves
4.2
2,240
5,416
Retained earnings
(247,675)
(214,834)
Total equity
101,263
135,947
A Refer to note 1.2.2 for details of the restatement.
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
ANNUAL REPORT 2024 75
For the year ended 31 December 2024
Consolidated statement
of changes in equity
Attributable to owners of the Company
Note
Share
capital
$’000
Reserves
$’000
Retained
earnings
$’000
Total
$’000
Non-
controlling
interest
$’000
Total
equity
$’000
Balance at 1 January 2023
344,473
5,282
(211,188)
138,567
(789)
137,778
Opening balance correction
1.2.2
-
-
3,500
3,500
-
3,500
Restated balance at 1 January 2023
344,473
5,282
(207,688)
142,067
(789)
141,278
Net profit / (loss) after tax
-
-
12,789
12,789
(589)
12,200
Other comprehensive loss
-
(207)
-
(207)
-
(207)
Total comprehensive (loss) / income
-
(207)
12,789
12,582
(589)
11,993
Dividends paid
4.4.2
-
-
(16,552)
(16,552)
-
(16,552)
Supplementary dividends paid
4.4.2
-
-
(2,103)
(2,103)
-
(2,103)
Tax credit on supplementary
dividends paid
-
-
2,103
2,103
-
2,103
Equity transaction with
non-controlling interest
-
-
(3,383)
(3,383)
1,378
(2,005)
Deferred tax on share schemes
4.1
892
-
-
892
-
892
Share based payments expense
4.2
-
341
-
341
-
341
Balance at 31 December 2023
345,365
5,416
(214,834)
135,947
-
135,947
Balance at 1 January 2024
345,365
5,416
(214,834)
135,947
-
135,947
Net loss after tax
-
-
(16,040)
(16,040)
-
(16,040)
Other comprehensive income
-
359
-
359
-
359
Total comprehensive income / (loss)
-
359
(16,040)
(15,681)
-
(15,681)
Dividends paid
4.4.2
-
-
(16,801)
(16,801)
-
(16,801)
Supplementary dividends paid
4.4.2
-
-
(2,174)
(2,174)
-
(2,174)
Tax credit on supplementary
dividends paid
-
-
2,174
2,174
-
2,174
Deferred tax on share schemes
4.1
(26)
-
-
(26)
-
(26)
Share based payments expense
4.2
-
354
-
354
-
354
Total incentive plan
("TIP") settlements
4.1
1,359
(3,889)
-
(2,530)
-
(2,530)
Balance at 31 December 2024
346,698
2,240
(247,675)
101,263
-
101,263
The above consolidated statement of changes in equity should be read in conjunction with the
accompanying notes.
76 NEW ZEALAND MEDIA AND ENTERTAINMENT
For the year ended 31 December 2024
Consolidated statement
of cash flows
Note
2024
$’000
2023
$’000
Cash flows from operating activities
Receipts from customers
345,721
345,757
Payments to suppliers and employees
(297,348)
(293,429)
Government grants
1,754
3,651
Dividends received
49
88
Interest received
362
445
Interest paid
(7,470)
(7,167)
Income taxes paid
(5,211)
(7,839)
Net cash inflows from operating activities
4.6
37,857
41,506
Cash flows from investing activities
Payments for intangible assets
(9,076)
(7,723)
Payments for property, plant and equipment
(3,638)
(3,314)
Proceeds from sale of property, plant and equipment
-
30
Net cash outflows from investing activities
(12,714)
(11,007)
Cash flows from financing activities
Proceeds from borrowings
4.5.1
124,000
82,500
Repayments of borrowings
4.5.1
(119,000)
(82,500)
Dividends paid to Company's shareholders
4.4.2
(16,801)
(16,552)
Payments to non-controlling interests
(400)
(952)
Payments for lease liability principal
4.5.2
(13,825)
(13,141)
Net cash outflows from financing activities
(26,026)
(30,645)
Net decrease in cash and cash equivalents
(883)
(146)
Cash and cash equivalents at beginning of the year
5,524
5,670
Cash and cash equivalents at end of the year
4.5.1
4,641
5,524
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
ANNUAL REPORT 2024 77
1.0
Basis of preparation
1.1
Reporting entity and statutory base
NZME Limited (NZX:NZM and ASX:NZM) is a for-
profit company limited by ordinary shares which
are publicly traded on the NZX Main Board and
the Australian Securities Exchange as a Foreign
Exempt Listing. NZME Limited is incorporated and
domiciled in New Zealand. It is registered under
the Companies Act 1993 and is a FMC reporting
entity under Part 7 of the Financial Markets Conduct
Act 2013. The entity’s registered office is 2 Graham
Street, Auckland, 1010, New Zealand.
NZME Limited (the "Company" or "Parent") and its
subsidiaries' (together the "Group") principal activity
during the financial year was the operation of an
integrated media and entertainment business.
1.2
Material accounting policies
These consolidated financial statements have been
prepared in accordance with New Zealand Generally
Accepted Accounting Practice ("NZ GAAP"). They
comply with New Zealand equivalents to International
Financial Reporting Standards ("NZ IFRS") and
other applicable Financial Reporting Standards, as
appropriate for for-profit entities. The consolidated
financial statements also comply with International
Financial Reporting Standards Accounting Standards
("IFRS Accounting Standards"). The consolidated
financial statements have also been prepared in
accordance with Part 7 of the Financial Markets
Conduct Act 2013 and the NZX Listing Rules.
The Group has used non-GAAP measures which are
not prepared in accordance with NZ IFRS in relation
to the following:
•
total operating adjusted EBITDA (note 2.1);
•
net tangible liabilities (note 3.7); and
•
exceptional items (note 2.2.1).
These measures should not be viewed in isolation,
nor considered as a substitute for measures reported
in accordance with NZ IFRS. Non-GAAP financial
measures may not be comparable to similarly titled
amounts reported by other companies.
The material accounting policies adopted in the
preparation of the consolidated financial statements
are either set out below, or in the relevant note.
These policies have been consistently applied to
all the years presented, unless otherwise stated.
These consolidated financial statements are
presented for the Group and were approved for
issue by the Board of Directors on 25 February 2025.
1.2.1
Basis of measurement
These consolidated financial statements have been
prepared under the historical cost convention with
the exception of certain items for which specific
accounting policies are identified.
1.2.2
Prior period comparatives
The December 2023 balance sheet has been
restated as a result of corrections to:
•
derecognise subscriptions billed in advance
not yet paid for by customers. This decreases
the trade and other receivables and trade and
other payables (deferred revenue) balances by
$4.6 million (2022: $4.8 million); and
•
the deferred tax asset balance in respect of the
deferred tax treatment of lease incentives on
adoption of NZ IFRS 16: Leases. The correction
increases the deferred tax asset balance and
adjusts opening retained earnings by $3.5 million
(2022: $3.5 million) which is reflected in the
restatement of the statement of changes in equity.
These corrections have no impact on the current
year, or prior year income statement amounts
or earnings per share. No balance sheet at
31 December 2022 has been presented but the
accounts impacted have been disclosed above.
Prior period information was reclassified to ensure
consistency with current year disclosures and to
provide more meaningful comparison. This resulted
in separate disclosure of third party fulfilment costs
in the income statement (previously included in
other expenses).
1.2.3
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each
of the Group's entities are measured using the
currency of the primary economic environment in
which the entity operates (functional currency).
The consolidated financial statements are presented
in New Zealand dollars, which is the Company's
functional and the Group's presentation currency,
and rounded to the nearest thousand, except where
otherwise stated.
Notes to the consolidated
financial statements
78 NEW ZEALAND MEDIA AND ENTERTAINMENT
1.3
Material accounting estimates
and judgments
The preparation of the consolidated financial
statements requires the use of certain material
judgements, accounting estimates and assumptions,
including judgements, estimates and assumptions
concerning the future. The estimates and
assumptions are based on historical experiences
and other factors that are considered to be relevant.
The resulting accounting estimates will by definition,
seldom equal the related actual results and are
reviewed on an ongoing basis. Material areas of
estimation and judgement are provided below:
Areas of material accounting
estimates or judgements
Note
Intangible assets with indefinite
useful lives
3.1
Assumptions and judgments used in
testing for impairment of indefinite life
intangible assets
3.1.1
Lease terms and discount rates used
in determining right-of-use assets and
associated lease liabilities (see note
4.5.2 for lease liabilities)
3.3
1.4
New and amended standards
and interpretations
The Group has applied the following standards and
amendments for the first time in the preparation of
these consolidated financial statements.
•
NZ IAS 1 amendment - Classification
of liabilities as current or non-current; and
NZ IAS 1 amendment - non-current liabilities
with covenants.
•
FRS-44 amendment - Disclosure of fees
for audit firms’ services.
•
IFRS Interpretations Committee agenda
decision:
- July 2024 - Disclosure of Revenues and
Expenses for Reportable Segments (IFRS 8).
The amendments listed above did not have any
impact on the amounts recognised in the financial
statements however required the Group to provide
enhanced disclosures.
A number of new accounting standards are effective
for annual periods beginning after 1 January 2025
and earlier application is permitted. However, the
Group has not early adopted the following new or
amended accounting standards in preparing these
consolidated financial statements.
•
NZ IFRS 9 and NZ IFRS 7 amendment -
Amendments to the Classification and
Measurement of Financial Instruments.
The Group is in the process of assessing the
potential impact of the amendments on the
classification of these liabilities and the related
disclosures which is not expected to have a
significant impact on the Group's consolidated
financial statements.
•
NZ IFRS 18: Presentation and Disclosure in
Financial Statements.
This new standard, which is mandatory for the
Group in the 2027 financial year, is expected to
change the presentation of the Group’s primary
financial statements. The Group is in the
process of assessing the impact of the standard
and will disclose more information in the future.
1.5
Working capital
As at 31 December 2024 the Group had negative
working capital of $6.9 million compared to
$6.0 million as at 31 December 2023. The Group's
level of negative working capital is primarily
due to deferred revenue of $10.7 million
(31 December 2023: $13.0 million). The Directors
are satisfied that there will be adequate cash flows
generated from operating and financing activities
to meet the obligations of the Group for at least
the next 12 months.
ANNUAL REPORT 2024 79
2.0 Group performance
2.1
Segment reporting
The Group operates an integrated media and
entertainment business that incorporates the sale of
advertising, goods and services generated from the
audiences attached to the Group's media platforms
and comprises of three operating segments.
All significant operating decisions are based upon
analysis of the three operating segments. The
Executive Team and the Board of Directors have been
identified as the Chief Operating Decision Maker.
The Group’s major products and services are split
into the three segments with revenue, income, direct
and allocated costs reported to the Chief Operating
Decision Maker on this basis. Although the Group
operates in many different markets within New
Zealand, for management reporting purposes the
Group operates in one principal geographical area
being New Zealand as a whole.
The operating segments for the Group are:
•
Audio - terrestrial radio stations, digital
iHeartRadio, podcasts and Radio brand
websites.
•
Publishing - print publications (excluding
dedicated real estate publications) and
digital news websites including nzherald.co.nz.
and BusinessDesk.
•
OneRoof - comprises oneroof.co.nz and
dedicated real estate print publications.
Operating expenses comprise those costs that are
directly attributable to each segment and allocated
costs that are allocated based on different criteria
depending on the expense type.
Revenue and expenses that are not included in one of
the three operating segments are grouped together in
Other. This grouping includes corporate costs.
Audio
$’000
Publishing
$’000
OneRoof
$’000
Other
$’000
Total
$’000
For the year ended 31 December 2024
Advertising
115,080
106,361
26,807
-
248,248
Circulation and subscription
-
80,884
-
-
80,884
External printing and distribution
-
7,993
-
-
7,993
Other
968
4,679
303
-
5,950
Segment revenue from integrated
media and entertainment activities
116,048
199,917
27,110
-
343,075
Revenue from shared services centre
233
406
52
5
696
Events
-
-
-
2,153
2,153
Total revenue from external customers
116,281
200,323
27,162
2,158
345,924
Other income A
300
3,501
-
546
4,347
Finance income
-
-
-
362
362
Total finance and other income
300
3,501
-
908
4,709
Total revenue and other income
116,581
203,824
27,162
3,066
350,633
Continued
Notes to the consolidated
financial statements
80 NEW ZEALAND MEDIA AND ENTERTAINMENT
Audio
$’000
Publishing
$’000
OneRoof
$’000
Other
$’000
Total
$’000
Timing of revenue recognition
Recognised at a point in time
104,242
125,134
10,820
139
240,335
Recognised over time
12,039
75,189
16,342
2,019
105,589
Total revenue from external customers
116,281
200,323
27,162
2,158
345,924
Audio
$’000
Publishing
$’000
OneRoof
$’000
Other
$’000
Total
$’000
Operating expenses (excluding exceptional items)
People costs
56,217
77,547
8,060
3,857
145,681
Print and distribution
-
46,276
5,550
-
51,826
Selling and marketing
16,802
15,372
7,153
1
39,328
Content
8,456
10,636
2,110
48
21,250
Other
13,157
19,466
1,562
3,754
37,939
Total operating expenses
94,632
169,297
24,435
7,660
296,024
Operating adjusted EBITDA B
21,949
34,525
2,727
(5,030)
54,171
Total assets
112,994
119,849
9,334
12,388
254,565
Additions of property, plant and
equipment and intangible assets
2,709
8,066
1,920
19
12,714
Total liabilities
64,144
79,234
7,211
2,713
153,302
Audio
$’000
Publishing
$’000
OneRoof
$’000
Other
$’000
Total
$’000
For the year ended 31 December 2023
Advertising
112,197
110,472
20,370
-
243,039
Circulation and subscription
-
80,564
-
-
80,564
External printing and distribution
-
6,819
-
-
6,819
Other
991
6,252
413
-
7,656
Segment revenue from integrated
media and entertainment activities
113,188
204,107
20,783
-
338,078
Revenue from shared services centre
103
188
22
2
315
Events
-
-
-
2,359
2,359
Total revenue from external customers
113,291
204,295
20,805
2,361
340,752
Other income A
317
5,341
-
786
6,444
Finance income
-
-
-
445
445
Total finance and other income
317
5,341
-
1,231
6,889
Total revenue and other income
113,608
209,636
20,805
3,592
347,641
Audio
$’000
Publishing
$’000
OneRoof
$’000
Other
$’000
Total
$’000
Timing of revenue recognition
Recognised at a point in time
103,981
128,114
9,617
-
241,712
Recognised over time
9,310
76,181
11,188
2,361
99,040
Total revenue from external customers
113,291
204,295
20,805
2,361
340,752
ANNUAL REPORT 2024 81
Audio
$’000
Publishing
$’000
OneRoof
$’000
Other
$’000
Total
$’000
Operating expenses (excluding exceptional items)
People costs
55,826
78,048
7,553
2,943
144,370
Print and distribution
-
45,945
4,810
-
50,755
Selling and marketing
14,195
15,168
6,666
26
36,055
Content
7,714
10,144
1,766
43
19,667
Other
12,617
21,694
1,295
3,935
39,541
Total operating expenses
90,352
170,999
22,090
6,947
290,388
Operating adjusted EBITDA B
23,256
38,635
(1,287)
(4,440)
56,164
Total assets (restated) C
114,805
154,017
8,718
11,709
289,249
Additions of property, plant and
equipment and intangible assets
3,114
6,618
1,287
18
11,037
Total liabilities (restated) C
57,997
85,865
6,946
2,494
153,302
A Other income includes Government grants of $1,753,538 (2023: $3,651,371) received from the Ministry of Culture
and New Zealand On Air for the production of content, journalism training and creating greater cultural awareness.
There are no unfulfilled conditions or contingencies attaching to these grants. The Group did not benefit directly from
any other forms of Government assistance. Other income also includes rental income of $107,961 (2023: $141,353)
relating to the operating sub-leases of right-of-use assets. See note 3.4.3 for the income received from the finance
sub-leases on right-of-use assets.
B Operating adjusted Earnings before Interest, Tax, Depreciation and Amortisation ("Operating adjusted EBITDA")
which excludes exceptional items, is a non-GAAP measure that represents the Group’s total segment result which
is regularly monitored by the Chief Operating Decision Maker. Exceptional items are those gains, losses, income
and expense items that are not directly related to the primary business activities of the Group which are determined
in accordance with the NZME Exceptional Items Recognition Framework adopted by the Board. Exceptional items
include redundancies, impairment, one-off projects and the disposal of properties or businesses. These items are
excluded from the segment result that is regularly reviewed by the Chief Operating Decision Maker.
C Refer to note 1.2.2 for details of the restatement.
2.1.1
Revenue recognition
Revenue classified as generated at a point in
time comprises:
•
Revenue generated from advertising
placed in print publications and broadcast
on radio stations.
•
Circulation and subscription revenue derived
from the sale of print publications.
•
External printing and distribution for
third parties.
Revenue classified as generated overtime is:
•
Subscriptions to digital publications.
•
Revenue generated from the supply of online
advertising and other online services.
•
Revenue generated by the supply of services
including organising and running events,
back-office services and the supply of content,
created by the Group, to third parties.
Continued
Notes to the consolidated
financial statements
82 NEW ZEALAND MEDIA AND ENTERTAINMENT
2.1.2
Reconciliation of operating adjusted EBITDA to net profit before income tax expense
Note
2024
$’000
2023
$’000
Operating adjusted EBITDA
2.1
54,171
56,164
Finance income
2.1
362
445
Depreciation and amortisation
2.2.2
(29,886)
(28,623)
Finance costs
2.2.3
(7,800)
(7,656)
Share of joint ventures' and associates' net loss after tax
6.2.2
(210)
(588)
Impairment of intangible assets
3.1
(24,000)
-
Impairment of equity accounted investments
6.2.2
(733)
-
Exceptional items
Insurance income
50
644
Income from lease adjustments
26
-
Cost items
2.2.1
(4,482)
(2,608)
Net (loss) / profit before income tax expense
(12,502)
17,778
Accounting policies
The Group applies the following accounting
policies in relation to revenue:
Advertising
The Group operates an integrated media and
entertainment business and contracts with
customers to provide advertising on multiple
platforms across the divisions consisting of a
series of distinct services that are substantially
the same. Advertising is often bundled to include
publishing, audio and real estate components.
In most cases each component of the bundle is
treated as a distinct performance obligation and
the transaction price is allocated on a relative
stand-alone selling price basis. The Group also
provides advertising for non-cash consideration,
typically in exchange for advertising from another
media company. The Group concludes these
exchanges have commercial substance and
recognises revenue on a gross basis measured at
the fair value of the consideration received. For
advertising in print publications or terrestrial radio
stations the performance obligation is satisfied
at a point in time when the advertisement is
printed or aired. For advertising placed on digital
platforms the performance obligation is satisfied
over the period of the campaign.
Subscriptions
The Group enters into contracts with customers
to deliver a specified publication on specified
days. The performance obligation is satisfied,
and revenue is recognised, when the publication
is delivered. For contracts entered into with
customers for the supply of online premium
content the service obligation is satisfied,
and revenue recognised over the period
of the subscription.
Circulation
The Group enters into contracts with customers
to deliver specified publications on specified days
which the customer will on-sell to the public.
The performance obligation is satisfied when the
publication is delivered. Where customers have a
right to return unsold publications this is classed
as variable consideration and the Group includes
in the transaction price an estimate of the unsold
publications. This estimate is calculated using
the most likely amount method based on weekly
reporting from customers to the extent that it is
highly probable that a significant reversal in the
amount of cumulative revenue recognised will not
occur when the uncertainty associated with the
variable consideration is subsequently resolved.
External printing and distribution
The Group enters into contracts with customers to
print and or distribute their publications on their
behalf. The printing and delivery of publications
are two distinct performance obligations and
revenue is recognised at a point in time when the
publications are printed or delivered.
Shared services centre
The Group provides back-office support services
to customers. These services consist of a number
of functions that are largely consistent on a month-
to-month basis. Revenue is therefore recognised in
equal increments over the billing period.
ANNUAL REPORT 2024 83
Continued
Notes to the consolidated
financial statements
Deferred revenue
When a customer pays for goods or services
in advance, the Group recognises a deferred
revenue liability which is reduced, and revenue
recognised, as the Group satisfies each distinct
performance obligation.
Government grants
Cash received and receivable from Government
grants is recognised where there is reasonable
assurance that the grant will be received and the
group will comply with all attached conditions.
Government grants relating to costs are deferred
and recognised in "Other income" over the period
necessary to match them with the costs that they
are intended to compensate.
Significant financing component
The Group does not expect, at contract inception,
that the period between transferring the promised
goods or services from contracts with customers
and when the customer pays for those goods and
services to be more than one year. The Group
applies the practical expedient in NZ IFRS 15 to
not adjust the promised amount of consideration
it expects to receive for those goods or
services for the effects of a significant financing
component.
Incremental cost of obtaining a contract
The Group applies the practical expedient in
NZ IFRS 15 to recognise the incremental cost
of obtaining a contract (such as commission)
when incurred if the amortisation period is one
year or less. If material, the Group will recognise
an asset for any incremental cost of obtaining a
contract with a customer if the Group expects to
recover those costs and the amortisation period is
expected to be more than one year. Those costs
will be amortised on a systematic basis that is
consistent with the transfer of the good or service
to which the asset relates.
Costs to fulfil a contract
There are no upfront costs incurred by the Group
in respect of digital advertising placed on third
party platforms.
All revenue contracts are for periods of one
year or less. As permitted under NZ IFRS 15, the
transaction price allocated to these unsatisfied
contracts is not disclosed.
84 NEW ZEALAND MEDIA AND ENTERTAINMENT
2.2
Expenses
Note
2024
$’000
2023
$’000
2.2.1 Exceptional cost items as included in the following expenses
People costs
Redundancies and associated costs
4,096
2,691
BusinessDesk earn-out-provision
-
(413)
Property
Property lease adjustments and make good costs
-
69
Sub-lease costs
-
20
Technology and communication costs
34
-
Other expenses
NZME Advisory Limited - Commerce commission
-
(11)
Professional fees for various one-off projects
72
252
Costs associated with the acquisition of print businesses
29
-
Other - various
251
-
Total exceptional cost expenses
4,482
2,608
2.2.2 Depreciation and amortisation
Depreciation on property, plant and equipment
3.2
6,084
7,577
Depreciation on right-of-use assets
3.3
12,212
11,995
Amortisation on intangible assets
3.1
11,590
9,051
Total depreciation and amortisation
29,886
28,623
2.2.3 Finance costs
Interest and finance charges on bank facilities
2,822
2,796
Interest expense - other
144
-
Interest on interest rate swaps
-
(199)
Interest expense on leases
4,593
4,703
Loan modification adjustment
143
258
Borrowing cost amortisation
98
98
Total finance costs
7,800
7,656
2.2.4 Fees incurred for services provided by the audit firm to the Group
Audit and review of the Group's consolidated financial statements
In relation to the 2024 financial year
516
-
In relation to the 2023 financial year
17
505
Total audit and review services
533
505
Other assurance services A and other agreed-upon procedure engagements
Monthly market revenue benchmarking (January 2022 to January 2023)
(agreed-upon procedures engagement)
-
1
Non-audit assurance services on greenhouse gas emissions
(Other assurance services) A
60
-
Total fees incurred for services provided by the audit firm - PwC New Zealand
593
506
A Services were performed in 2024 relating to the 2022 and 2023 financial years.
ANNUAL REPORT 2024 85
Continued
Notes to the consolidated
financial statements
2.3
Earnings per share ("EPS")
2024
$’000
2023
$’000
(Loss) / profit attributable to owners of the parent entity used
in calculating EPS
(16,040)
12,789
2024
Number
2023
Number
Weighted average number of shares
Weighted average number of shares in the denominator
in calculating basic EPS
186,668,673
183,913,614
Adjusted for calculation of diluted EPS
1,976,392
7,217,143
Weighted average number of shares in the denominator
in calculating diluted EPS
188,645,065
191,130,757
2024
Cents
2023
Cents
Basic / diluted EPS
Basic EPS
(8.59)
6.95
Diluted EPS
(8.50)
6.69
Accounting policies
Basic earnings per share
Basic earnings per share is determined
by dividing:
•
the profit or loss attributable to owners
of the Company; by
•
the weighted average number of ordinary
shares outstanding during the financial
year, adjusted for bonus elements in
ordinary shares issued during the
financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures
used in the determination of basic earnings
per share by taking into account:
•
the after-tax effect of dividends, interest
and other changes in income or expense
associated with dilutive potential ordinary
shares; and
•
the weighted average number of additional
ordinary shares that would have been
outstanding assuming the conversion
of all dilutive potential ordinary shares.
86 NEW ZEALAND MEDIA AND ENTERTAINMENT
3.0 Operating assets and liabilities
3.1
Intangible assets
Material judgement: The Directors have determined that mastheads and brands have indefinite lives
and are therefore not amortised. Refer to the accounting policies below for further information.
Goodwill
$’000
Software
$’000
Mastheads
and
brands
$’000
Radio
licences
$’000
Capital
work in
progressA
$’000
Total
$’000
As at 1 January 2023
Cost
2,693
53,844
202,225
79,948
2,292
341,002
Accumulated amortisation and
impairment
-
(43,911)
(99,813)
(53,499)
-
(197,223)
Net book value
2,693
9,933
102,412
26,449
2,292
143,779
For the year ended 31 December 2023
Opening net book amount
2,693
9,933
102,412
26,449
2,292
143,779
Additions
-
-
-
305
7,418
7,723
Amortisation
-
(5,819)
-
(3,232)
-
(9,051)
Other transfers and adjustments
-
(6)
-
-
-
(6)
Transfers from capital work in progress B
-
9,686
-
-
(9,686)
-
Net book value
2,693
13,794
102,412
23,522
24
142,445
As at 31 December 2023
Cost
2,693
63,524
202,225
80,253
24
348,719
Accumulated amortisation and
impairment
-
(49,730)
(99,813)
(56,731)
-
(206,274)
Net book value
2,693
13,794
102,412
23,522
24
142,445
For the year ended 31 December 2024
Opening net book amount
2,693
13,794
102,412
23,522
24
142,445
Additions
-
-
-
-
9,076
9,076
Disposals
-
(90)
-
-
-
(90)
Amortisation
-
(8,346)
-
(3,244)
-
(11,590)
Impairment
(2,693)
-
(21,307)
-
-
(24,000)
Transfers from capital work in progress
-
8,711
-
-
(8,711)
-
Net book value
-
14,069
81,105
20,278
389
115,841
As at 31 December 2024
Cost
2,693
72,125
202,225
80,253
389
357,685
Accumulated amortisation and
impairment
(2,693)
(58,056)
(121,120)
(59,975)
-
(241,844)
Net book value
-
14,069
81,105
20,278
389
115,841
A Capital work in progress is transferred to the relevant asset category once the project is completed.
Capital work in progress is not amortised prior to being transferred to the relevant asset category.
Intangible assets not yet available for use, that are included in capital work in progress, are subject
to annual impairment tests. Capital work in progress at 31 December 2024 and 31 December 2023
comprised of expenditure on digital development projects.
B $1.3 million has been reclassified from capital work in progress to software to reflect the newly
completed assets that had not been transferred at 31 December 2023.
ANNUAL REPORT 2024 87
Continued
Notes to the consolidated
financial statements
Accounting policies
Goodwill
Goodwill arises on the acquisition of businesses
and represents the excess of the consideration
paid above the fair value of the net identifiable
assets, liabilities and contingent liabilities
acquired.
Software
Internal and external costs directly incurred
in the purchase or development of software
controlled by the Group are recognised as
intangible assets, including subsequent
improvements, when it is probable that they
will generate a future economic benefit. Costs
capitalised include materials, services, payroll
and payroll related costs of employees involved
in development. Amortisation of software
assets is calculated on a straight-line basis
over the useful life of the asset (typically
2 to 10 years).
Cloud computing arrangements provide the
Group with the right to access a supplier's cloud
based software for a specified contract period.
Where the Group controls an identifiable asset
in relation to the integration and customisation
of cloud computing arrangements these
costs will be capitalised and amortised over
the life of the arrangement. Control exists
where the Group determines that the asset
could be transferred to an alternative supplier
without incurring substantial additional costs.
If the Group does not control the cloud based
software, the related development costs
(external and internal) are recognised as either:
(a) an expense when they are incurred, for
internal costs, and the costs of an integrator
not related to the software provider, or
(b) as a prepayment and then expensed over
the term of the cloud computing arrangement
for the costs of the software provider or its
subcontractor.
Mastheads and brands
Mastheads, being the titles, logos and similar
items of the integrated media assets of the
Group, and brands are initially recognised at
cost. The Directors believe the mastheads
and brands have indefinite lives as there is no
foreseeable limit over which they are expected
to generate net cash inflows for the Group.
Accordingly, mastheads and brands are not
amortised but are tested for impairment each
year (refer to note 3.1.1 below).
Radio licenses
Commercial radio licenses are accounted for as
identifiable assets and are initially recognised
at cost. The current New Zealand radio
licenses expire on 31 March 2031 and are being
amortised on a straight line basis to that date.
Impairment of goodwill, mastheads and brands
Assets that have an indefinite useful life are
reviewed annually for impairment or whenever
events or changes in circumstances indicate
that the carrying amount of the asset may not be
recoverable. An impairment loss is recognised
for the amount by which the asset’s carrying
amount exceeds its recoverable amount.
3.1.1
Year-end impairment review by cash generating unit ("CGU")
The Directors are required to assess at each reporting
date, whether there are any indicators of impairment
for finite life assets. For any indefinite life assets, the
Directors are required to undertake an impairment test
at the lowest level of cash generating unit ("CGU").
As disclosed in note 2.1 the Directors have
determined that the Group has three operating
segments – being "Audio", "Publishing" and
"OneRoof". The Directors have also determined
that there are three CGUs for impairment testing
because these are the lowest level for which there
are separately identifiable cash inflows which are
largely independent of the cash inflows from other
assets or groups of assets. The table below contains
the allocation of the Group's indefinite life intangible
assets across the CGUs.
88 NEW ZEALAND MEDIA AND ENTERTAINMENT
Audio
$’000
Publishing
$’000
OneRoof
$’000
Total
$’000
As at 31 December 2024
Goodwill
-
-
-
-
Mastheads and brands
29,169
51,936
-
81,105
Non-amortising intangible assets
29,169
51,936
-
81,105
Audio
$’000
Publishing
$’000
OneRoof
$’000
Total
$’000
As at 31 December 2023
Goodwill
-
2,693
-
2,693
Mastheads and brands
29,169
73,243
-
102,412
Non-amortising intangible assets
29,169
75,936
-
105,105
As an integrated media and entertainment business,
the Directors consider the mastheads and brands of
each CGU to be complimentary which as a group
represent the highest and best use of the assets.
For the OneRoof CGU, no impairment indicators were
identified and, as it does not have any indefinite life
intangible assets, no further impairment testing has
been carried out.
The recoverable amount of a CGU is determined
based on the higher of fair value less costs
of disposal ("FVLCD") and value-in-use ("VIU")
calculations using management forecasts. The
recoverable amount of each CGU is compared
against the carrying value of the assets of that CGU
to determine whether there has been impairment.
Any impairment is recognised immediately as
an expense and in relation to goodwill, is not
subsequently reversed.
An impairment review was conducted at
31 December 2024 using VIU calculations to
determine the respective recoverable amounts
of each CGU. FVLCD calculations were also used
to determine the recoverable amount of the
Publishing CGU.
Based on the key estimates and assumptions outlined
below no impairment of indefinite life intangible
assets has been recognised in the income statement
for the Audio CGU (2023: $nil).
An impairment of Publishing CGU intangible assets
of $24.0 million has been recognised in the income
statement. The impairment has been allocated to
reduce goodwill by $2.7 million and mastheads and
brands by $21.3 million.
The 2024 impairment of Publishing CGU intangible
assets has been identified using the recoverable
amount determined by FVLCD calculations, as this
was higher than the recoverable amount determined
by VIU calculations. The recoverable amount
was calculated to be $50.2 million, measured in
accordance with level 3 of the fair value hierarchy
(as defined by IFRS 13) and applying a discounted
cash flow valuation technique.
The cash flow forecasts used in calculations of the
recoverable amounts are based off the Group's
Board-approved medium-term plans over a five-
year period, after applying a more conservative
set of assumptions that are considered the most
appropriate for impairment testing. Cash flows
beyond the five-year period are extrapolated by
calculating a terminal value. This assessment is
required to be made based on events and knowledge
as at 31 December 2024.
ANNUAL REPORT 2024 89
Continued
Notes to the consolidated
financial statements
Key estimates and assumptions used for calculating the recoverable amounts of each CGU
Discount rates and terminal growth rates assessed as appropriate for each CGU are as follows:
2024
Audio
2024
Publishing
2023
Audio
2023
Publishing
Forecast period
2025-2029
2025-2029
2024-2028
2024-2028
Discount rate (post tax)
10.0%
10.0%
10.0%
10.0%
Terminal value growth / (decline)
0%
1.0%
0%
(1.0%)
The 2024 Publishing CGU terminal growth rate
shown in the above table is the rate used in FVLCD
calculations. The difference compared with the rate
used in the previous year reflects the increased
proportion of forecast cash flows derived from digital
revenue, which is expected to contribute to positive
long-term growth for the Publishing CGU.
The discount rate represents the current market
assessment of the risks specific to each CGU,
considering the time value of money and individual
risks of the underlying assets that have not been
incorporated in the cash flow estimates.
The terminal value used in the recoverable amount
calculations has used the terminal growth rate
assumptions provided in the above table.
The forecasts are prepared by management
based on current expectations for each CGU, with
consideration given to internal information and
relevant external industry data and analysis. This
requires assumptions and judgements about the
future, such as discount rates, long term growth
rates, and forecasted revenues to which the model
is sensitive and which are inherently uncertain.
Specifically, the Publishing CGU is expected to be
impacted by the continued decline of the print
advertising market, and this uncertainty has been
reflected in forecast assumptions.
Compared with the previous year, Publishing CGU
forecasts reflect an adjusted allocation of future
capital expenditure across the Group, the impact of
slower than anticipated short-term market recovery
across print and digital, and the decision made in
December 2024 to close certain Community print
publications. These closures were not anticipated
in 2023 and therefore not reflected in forecasts used
for 2023 impairment testing.
Future capital expenditure for the Group as a whole
is estimated at historical replacement levels, noting
the allocation to CGUs within the Group has been
adjusted to better reflect the strategic focus of each
CGU. The capital cost of renewing radio licenses
that expire in 2031 may impact the amount of future
capital expenditure for the Audio CGU.
Key forecast revenue assumptions used are as follows:
Publishing
2024
Audio
Print advertising
and subscriptions
Digital advertising
and subscriptions
2025 - 2029 CAGR^
2.2%
(5.8%)
3.7%
Publishing
2023
Audio
Print
advertising
Digital
advertising
Print and digital
subscriptions
2024 - 2028 CAGR^
3.6%
(7.6%)
4.8%
(1.0%)
^CAGR = compound annual growth rate.
90 NEW ZEALAND MEDIA AND ENTERTAINMENT
Accounting policy
Goodwill and intangible assets that have
an indefinite useful life are not subject to
amortisation and are tested annually for
impairment and at the end of each reporting
period if there is an indication that they may be
impaired. An impairment charge is recognised
for the amount by which the asset’s carrying
amount exceeds its recoverable amount.
The recoverable amount is the higher of an
asset’s fair value less costs to sell and value-in-
use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for
which there are separately identifiable cash
inflows which are largely independent of the
cash inflows from other assets or groups of
assets (cash-generating units). Non-financial
intangible assets, other than goodwill, that
suffer impairment are reviewed for possible
reversal of the impairment at each balance
sheet date.
Impairment testing on assets other than
indefinite life intangible assets are carried
out only if impairment indicators exist.
The key revenue assumptions used for the 2024
impairment review of the Publishing CGU reflect
the ‘fair value’ characteristics of FVLCD calculations
and that market participants would likely make
separate assessments about future print and digital
revenue growth. For the 2023 impairment review, VIU
calculations were used for the Publishing CGU and key
assumptions did not distinguish between print and
digital revenue in the same way.
The forecasts used in impairment testing have been
prepared to comply with the requirements of IAS 36
for that specific purpose. They should not be read
as a forecast of, or guidance to, the future financial
performance and earnings of the Group. Actual results
may differ materially from those forecast or implied.
Whilst management considers that its forecast
assumptions are reasonable, short term volatility
may be experienced due to the impact of external
environmental and economic conditions. It is
reasonably possible, on the basis of existing
knowledge, that actual outcomes are different from
the forecast assumptions used and which could
require a material adjustment to the carrying amount
of the asset or liability affected.
The Directors have reviewed the potential changes
to the recoverable amounts that could arise from
changes in key assumptions and concluded that,
at this time, there are no reasonably possible adverse
changes in key assumptions that would result in
impairment of the Audio CGU.
Any reasonably possible adverse change in the key
assumptions of the Publishing CGU may result in
further impairment. The impact of any reasonably
possible changes that resulted in an additional 1.0%
CAGR decline in Print publishing revenue would
increase impairment by approximately $8.0 million.
Note this calculation does not include any adjustments
for certain CGU expenses in line with revenue.
In addition, an increase or decrease in the discount
rate used of 0.5% would increase or decrease the
impairment recognised of the Publishing CGU by
approximately $2.0 million. An increase or decrease in
the terminal growth rate used of 0.5% would increase
or decrease the impairment recognised of the
Publishing CGU by approximately $1.5 million.
It is reasonably possible that additional CAGR decline
in Print publishing revenue could exceed 1.0% and it
is reasonably possible that discount rates, or terminal
growth rates could move adversely in excess of 0.5%.
These declines may result in further impairment of the
Publishing CGU on a FVLCD approach. These impacts
could also occur in combination with each other.
The Directors determined that the increase in the
headroom of the Audio CGU, since the impairment
recognised as at 31 December 2019, is not directly
attributable to the brands existing at the time and
as a result a reversal of previously recognised
impairment of indefinite life intangible assets has
not been recognised.
The Group compares the carrying amount of net
assets with the market capitalisation value at each
balance date. The share price at 31 December 2024
was $1.06 equating to a market capitalisation of
$199.2 million. This market value excludes any control
premium and may not reflect the value of 100% of
NZME’s net assets. The carrying amount of NZME’s
net assets at 31 December 2024 was $101.3 million,
post impairment, ($0.54 per share).
ANNUAL REPORT 2024 91
Continued
Notes to the consolidated
financial statements
3.2
Property, plant and equipment
Freehold
land A
$’000
Buildings A
$’000
Leasehold
improvements
$’000
Plant and
equipment
$’000
Capital
work in
progress B
$’000
Total
$’000
As at 1 January 2023
Cost
265
67
14,425
254,804
1,503
271,064
Accumulated depreciation
-
(11)
(11,004)
(235,451)
-
(246,466)
Net book value
265
56
3,421
19,353
1,503
24,598
Year ended 31 December 2023
Opening net book amount
265
56
3,421
19,353
1,503
24,598
Additions
-
-
-
11
3,303
3,314
Disposals
-
-
-
(30)
-
(30)
Depreciation
-
(2)
(954)
(6,621)
-
(7,577)
Other adjustments
-
-
-
6
-
6
Transfers from capital work
in progress
-
-
359
3,595
(3,954)
-
Net book value
265
54
2,826
16,314
852
20,311
As at 31 December 2023
Cost or fair value
265
67
14,784
247,173
852
263,141
Accumulated depreciation
-
(13)
(11,958)
(230,859)
-
(242,830)
Net book value
265
54
2,826
16,314
852
20,311
Year ended 31 December 2024
Opening net book amount
265
54
2,826
16,314
852
20,311
Additions
-
-
-
5
3,633
3,638
Depreciation
-
(5)
(951)
(5,128)
-
(6,084)
Revaluation
315
38
-
-
-
353
Transfers from capital work
in progress
-
158
160
3,247
(3,565)
-
Net book value
580
245
2,035
14,438
920
18,218
As at 31 December 2024
Cost or fair value
580
261
14,944
248,244
920
264,949
Accumulated depreciation
-
(16)
(12,909)
(233,806)
-
(246,731)
Net book value
580
245
2,035
14,438
920
18,218
92 NEW ZEALAND MEDIA AND ENTERTAINMENT
Accounting policies
Owned land and buildings are held at fair value
less subsequent accumulated depreciation
for buildings. Leasehold improvements and
plant and equipment are stated at cost less
accumulated depreciation and impairment
losses. Cost includes the purchase price and
all directly attributable costs of bringing the
asset to its location and condition necessary
to operate as intended.
Land is not depreciated. Depreciation on
other assets is calculated using the straight
line method to allocate their cost or revalued
amounts, net of their residual values, over their
estimated useful lives, as follows:
•
Buildings
•
10 to 50 years
•
Leasehold
improvements
•
2.5 to 50 years
•
Plant &
equipment
•
1.5 to 29 years
The gain or loss on the disposal or retirement
of an asset is the difference between the sale
proceeds and the carrying amount of the asset
and is included in the income statement.
Fair value of land and owned buildings
At the end of each reporting period, the
Directors update their assessment of the fair
value of each property. Any accumulated
depreciation at the date of revaluation is
eliminated against the gross carrying amount of
the asset and the net amount is restated to the
revalued amount of the asset. Increases in the
carrying amounts arising on revaluation of land
and buildings are credited to revaluation reserves
in equity. To the extent that the increase reverses
a decrease previously recognised in the income
statement, the increase is first recognised in
the income statement. Decreases that reverse
previous increases of the same asset are first
charged against the revaluation reserves directly
in equity to the extent of the remaining reserve
attributable to the asset. All other decreases are
charged to the income statement.
Impairment of assets
An asset’s carrying amount is written down
immediately to its recoverable amount if the
asset’s carrying amount is greater than its
estimated recoverable amount. Assets that are
subject to depreciation are tested for impairment
whenever changes in circumstances indicate
that the asset’s carrying amount may exceed
its recoverable amount. An impairment charge
is recognised for the amount by which the
asset’s carrying amount exceeds its recoverable
amount. Assets that suffer an impairment are
reviewed for possible reversal of the impairment
at each balance sheet date.
A Freehold land and buildings are held at fair value based on Directors' valuations. If land and buildings
were stated on the historical cost basis, the net book value of land would have been $214,000
(2023: $214,000) and the net book value of buildings would have been $174,895 (2023: $20,181).
An independent valuation was performed in February 2024 which supports the Directors' valuation
at balance sheet date.
B Capital work in progress is transferred to the relevant asset category once the project is completed.
Capital work in progress is not depreciated prior to being transferred to the relevant asset category.
Capital work in progress at 31 December 2024 and 31 December 2023 is primarily comprised of
expenditure on technology projects.
ANNUAL REPORT 2024 93
Continued
Notes to the consolidated
financial statements
3.3
Right-of-use assets
Material judgement: Where a discount rate is not explicit in a lease the Group determines an
applicable discount rate to use based on publicly available rates for Government Bonds, Bloomberg
corporate bond spreads and yields and New Zealand swap rates and then applies an adjustment
to these rates to apply a company specific credit risk. In determining the lease term the Group
includes any periods covered by options to extend where the Group is reasonably certain to
exercise that option.
Buildings
$’000
Transmission
$’000
Vehicles
$’000
Other
$’000
Total
$’000
As at 1 January 2023
Net book value
39,410
23,269
934
44
63,657
Year ended 31 December 2023
Additions
536
-
564
-
1,100
Depreciation
(7,596)
(3,830)
(559)
(10)
(11,995)
Transfer to lease receivables
(4)
-
-
-
(4)
Changes in scope or lease terms
3,372
2,085
18
-
5,475
As at 31 December 2023
Net book value
35,718
21,524
957
34
58,233
Year ended 31 December 2024
Additions
946
5,341
1,137
-
7,424
Depreciation
(7,388)
(4,089)
(725)
(10)
(12,212)
Impairment of right-of-use assets
(74)
-
-
-
(74)
Transfer to lease receivables
(321)
-
-
-
(321)
Changes in scope or lease terms
1,279
441
(60)
-
1,660
Net book value
30,160
23,217
1,309
24
54,710
94 NEW ZEALAND MEDIA AND ENTERTAINMENT
3.4
Trade and other receivables
Note
2024
$’000
2023
Restated A
$’000
Trade receivables
36,161
32,645
Provision for impairment
(747)
(631)
35,414
32,014
Amounts due from related companies
7.2
336
330
Finance lease receivables
3.4.3
610
545
Other receivables and prepayments
5,125
7,518
Total current trade and other receivables
41,485
40,407
Movements in the provision for impairment are as follows:
Balance at beginning of the year
631
516
Provision for impairment expense
2
228
Receivables recovered / (written off)
114
(113)
Provision for impairment
747
631
Other receivables and prepayments
367
561
Finance lease receivables
3.4.3
3,579
3,892
Total non-current trade and other receivables
3,946
4,453
A Refer to note 1.2.2 for details of restatement.
3.4.1
Classification
Trade receivables are amounts due from customers
for goods sold or services performed in the ordinary
course of business as well as receivables in relation
to goods or services to be sold or performed in the
future. Receivables and other financial assets are
classified and subsequently measured at amortised
cost on the basis of both the Group's business
model for managing the financial assets and the
contractual cash flow characteristics of the financial
asset. If collection of the amounts is expected in
one year or less they are classified as current assets.
If collection is expected to be in greater than one
year they are classified as non-current.
3.4.2 Impairment and risk exposure
The maximum exposure to credit risk at the balance
sheet date is the higher of the carrying value and
fair value of each receivable. The Group does not
hold any collateral as security. Refer to note 4.7.3 for
credit risk and note 4.8 for fair value information.
Accounting policy
The Group leases various offices, transmission
towers, vehicles and other equipment which
are all classified as operating leases.
Leases are recognised as a right-of-use asset
and a corresponding lease liability. Each
lease payment is allocated between the lease
principal and finance costs. Finance costs are
charged to profit or loss over the lease period
and the right-of-use asset is depreciated over
the shorter of the asset's useful life and the
lease term on a straight-line basis.
Assets and liabilities arising from a lease are
initially measured on a present value basis.
Lease liabilities include the net present value
of the following lease payments:
•
fixed payments (including in-substance
fixed payments), less any lease incentives
receivable;
•
variable lease payments that are based on
an index or a rate;
•
amounts expected to be payable by the
lessee under residual value guarantees;
•
the exercise price of a purchase option if
the lessee is reasonably certain to exercise
that option; and
•
payments of penalties for terminating the
lease, if the lease term reflects the lessee
exercising that option.
ANNUAL REPORT 2024 95
Continued
Notes to the consolidated
financial statements
3.4.3 Finance lease receivables
Finance lease receivables relate to the sub-leases of parts of the Graham Street and Whangarei right-of-use
assets sub-let during the financial year.
2024
$’000
2023
$’000
As at 1 January
4,437
4,963
Transfer from right-of-use assets
321
4
Interest on lease receivables
217
236
Total lease receivables before cash payments
4,975
5,203
Interest received
(217)
(236)
Principal received
(569)
(530)
Net investment in lease receivables at 31 December A
4,189
4,437
Current assets
610
545
Non-current assets
3,579
3,892
Net investment in lease receivables at 31 December
4,189
4,437
A Make good provisions are included in material sub-leases to ensure the Group's exposure to risk
is minimised.
Accounting policy
Trade receivables are recognised initially at fair
value and subsequently measured at amortised
cost using the effective interest method, less
provision for impairment.
Receivables are monitored on an individual
basis and the Group considers the probability
of default upon initial recognition of the receivable
and throughout the period and provides for
receivables expected to be impaired.
The amount of loss is recognised in the income
statement within other expenses. When a
trade receivable is uncollectible, it is written
off against the provision account for trade
receivables. Subsequent recoveries of amounts
previously written off are credited to the income
statement against the impairment losses on
receivables.
96 NEW ZEALAND MEDIA AND ENTERTAINMENT
3.5
Inventories
Inventories is predominantly the stock of newsprint
held at the Ellerslie print plant and is valued at cost.
The longevity of the commodity, and the short
period of time that stock is on hand, reduces the
Group's risk of holding obsolete stock.
During the year ended 31 December 2024
inventories totalling $13,422,694 were expensed
through production and distribution expenses
(2023: $13,186,488).
Accounting policy
When the Group acts as a lessor in sub-leasing
its right-of-use assets, it determines, at lease
commencement date, whether each lease
is a finance lease or an operating lease by
assessing whether the lease transfers to the
lessee substantially all the risks and rewards
of ownership incidental to ownership of the
underlying asset. If this is the case then the
lease is a finance lease; if not then it is an
operating lease. As part of this assessment the
Group considers certain indicators such as
whether the lease is for the major part of the
economic life of the asset.
For the purposes of classifying the sub-lease
reference is to the right-of-use asset arising
from the head lease, not with reference to the
underlying asset.
Assets arising from a sub-lease are initially
measured on a present value basis and include
the following:
•
initial direct costs incurred in acquiring
the sub-lease;
•
fixed payments (including in-substance
fixed payments), less any lease incentives
payable;
•
variable lease payments that are based
on an index or a rate;
•
amounts expected to be receivable under
residual value guarantees;
•
the exercise price of a purchase option if
the lessee is reasonably certain to exercise
that option; and
•
payments of penalties for terminating the
lease, if the lease term reflects the lessee
exercising that option.
Accounting policy
Inventories are measured at cost and are expensed using the first in first out ("FIFO") method,
as used.
The table below details the Group’s contractual undiscounted cash flows for the finance lease receivable
assets to maturity.
2024
$’000
2023
$’000
Less than 1 year
808
755
1 to 5 years
2,561
2,269
Greater than 5 years
1,472
2,230
Total lease payments receivable
4,841
5,254
Unearned finance income
(652)
(817)
Net investment in lease receivables at 31 December
4,189
4,437
ANNUAL REPORT 2024 97
Continued
Notes to the consolidated
financial statements
3.6
Trade and other payables
2024
$’000
2023
Restated A
$’000
Current payables
Employee entitlements
4,608
5,930
Deferred revenue
10,705
12,989
Trade payables and accruals
29,062
25,271
Total current trade and other payables
44,375
44,190
A Refer to note 1.2.2 for details of restatement.
All deferred revenue at 31 December 2023 was recognised in revenue during 2024.
Accounting policies
Trade and other payables
Trade payables, including accruals not yet
billed, are recognised when the Group
becomes obliged to make future payments as a
result of a purchase of assets or services. Trade
payables are carried at amortised cost which
is the fair value of the consideration to be paid
in the future for goods and services received.
Trade payables are unsecured and are generally
settled within 30 to 45 days.
Employee entitlements
Wages and salaries and annual leave
Liabilities for wages and salaries, including non-
monetary benefits and annual leave expected
to be wholly settled within 12 months from the
balance sheet date are recognised in payables
and accruals in respect of employees’ services
up to the balance sheet date and are measured
at the amounts expected to be paid when the
liabilities are settled. Amounts to be settled
more than 12 months after the balance sheet
date are recognised as a non-current payable.
Liabilities for non-accumulating sick leave
are recognised when the leave is taken and
measured at the rates paid or payable.
Short-term incentive plans
A liability for short-term incentives is recognised
in trade payables when there is an expectation
of settlement and at least one of the following
conditions is met:
•
there are contracted terms in the plan for
determining the amount of the benefit;
•
the amounts to be paid are determined
before the time of completion of the
financial statements; or
•
past practice gives clear evidence
of the amount of the obligation.
•
amounts expected to be receivable under
residual value guarantees;
•
the exercise price of a purchase option
if the lessee is reasonably certain to
exercise that option; and
•
payments of penalties for terminating the
lease, if the lease term reflects the lessee
exercising that option.
Liabilities for short-term incentives are expected
to be settled within 12 months and are recognised
at the amounts expected to be paid when they
are settled.
Refer to note 4.3 for disclosures relating to
share based payments and note 7.1 for key
management compensation.
Deferred revenue
The accounting policy for deferred revenue
is disclosed in note 2.1.
98 NEW ZEALAND MEDIA AND ENTERTAINMENT
3.7
Net tangible liabilities
Net tangible assets per share is a non-GAAP
measure that is required to be disclosed by the
NZX Listing Rules.
The calculation of the Group's net tangible assets
per share and its reconciliation to the consolidated
balance sheet is presented below:
2024
$’000
2023
$’000
As at 31 December
Total assets (2023 restated)
254,565
289,249
Deferred tax asset (2023 restated)
(8,064)
(9,209)
Intangible assets
(115,841)
(142,445)
Total liabilities (2023 restated)
(153,302)
(153,302)
Net tangible liabilities for the owners of the Company
(22,642)
(15,707)
Number of shares issued (in thousands)
187,900
183,914
Net tangible liabilities per share (in $)
($0.12)
($0.09)
ANNUAL REPORT 2024 99
Continued
Notes to the consolidated
financial statements
4.0 Capital management
4.1
Share capital
2024
’000
2023
’000
2024
$’000
2023
$’000
Authorised, issued and paid up share capital
Balance at the beginning of the period
183,914
183,914
345,365
344,473
Deferred tax on share schemes
-
-
(26)
892
Shares issued during the year
3,986
-
1,359
-
Balance at the end of the period
187,900
183,914
346,698
345,365
Accounting policy
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
4.2
Reserves
Share based
payments
$’000
Equity
investments
revaluation
$’000
Other
$’000
Total
$’000
As at 1 January 2023
3,658
1,063
561
5,282
Share based payments expense
341
-
-
341
Effective gain on hedging instruments
-
-
(1)
(1)
Reclassification to profit or loss
-
-
(204)
(204)
Net exchange difference on translation
of foreign operations
-
-
(2)
(2)
As at 31 December 2023
3,999
1,063
354
5,416
Share based payments expense
354
-
-
354
TIP settlement
(3,889)
-
-
(3,889)
Revaluation of freehold land and buildings
-
-
353
353
Net exchange difference on translation
of foreign operations
-
-
6
6
As at 31 December 2024
464
1,063
713
2,240
Other reserves include the asset revaluation reserve and the foreign currency translation reserve.
100 NEW ZEALAND MEDIA AND ENTERTAINMENT
4.3
Share based payments
2024
2023
Average price
per right ($)
Number of
rights
Average price
per right ($)
Number of
rights
As at 1 January
0.60
7,217,143
0.64
6,715,262
Granted (2022 TIP STI component) A
-
-
1.43
(3,504)
Granted (2023 TIP LTI component) B
-
-
0.73
496,765
Granted (2024 TIP LTI component) B
0.64
681,695
-
-
Adjustment for dividends foregone C
0.82
97,217
0.85
287,771
Surrendered D
0.32
(2,386,087)
-
-
Shares issued (2020 TIP) E
0.47
(2,512,716)
-
-
Shares issued (2021 TIP) E
0.79
(1,219,343)
-
-
Shares issued (2022 TIP- STI component) E
1.43
(254,131)
-
-
Forfeited F
-
-
0.92
(279,151)
Granted and awarded as at 31 December
1,623,778
7,217,143
2024 TIP STI component (estimation) G
0.84
352,614
-
-
As at 31 December
0.52
1,976,392
0.60
7,217,143
A Adjustment to the number of actual rights issued under the various TIP schemes.
B The number of performance rights granted in relation to the LTI components of the 2023
and 2024 TIP schemes.
C For the 2020 and 2021 TIP schemes the Board has approved that participants will be entitled to
additional shares, or a cash payment, when the rights are exercised for any dividends foregone
during the period that the rights are held. For dividends declared during the period 1 January 2024
to 31 December 2024, this resulted in an additional 146,797 shares accrued.
D Surrendered performance rights relate to the 2020 TIP and 2021 TIP schemes, with participants
surrendering rights in lieu of PAYE owing on the issue of shares.
E The rights granted under the 2020 TIP and 2022 TIP (STI component) were issued on 3 January 2024
with a total of 2,766,847 shares being issued. The share price at the date of issue was $1.06. The rights
granted under the 2021 TIP were issued on 31 December 2024 with a share price of $1.06.
F The forfeited shares are in relation to the 2022 and 2021 schemes where participants have not
met the service period criteria.
G The number of performance rights expected to be granted in 2025 in respect of the 2024 TIP
STI component.
ANNUAL REPORT 2024 101
Continued
Notes to the consolidated
financial statements
In relation to the 2022 TIP, 2023 TIP and 2024
TIP the Group expects to issue the net shares
after withholding shares with a value equal to the
participants tax obligations under New Zealand tax
legislation arising as a result of the issue of shares at
the relevant exercise date. This reduces the dilutive
impact of the rights on the earnings per share
calculation for the Group for the years ended
31 December 2024 and 31 December 2023.
The shares that are expected to be withheld are
excluded from the rights table above.
Participants of the 2022 TIP, the 2023 TIP and the 2024
TIP are not entitled to receive any dividends paid by
the Company as a holder of rights.
Share rights outstanding at the balance sheet date have the following exercise date:
Vesting date
Exercise date
2024
Number of
rights
2023
Number of
rights
2020 TIP scheme
31 Dec 2021
3 Jan 2024
-
4,119,216
2021 TIP scheme
31 Dec 2022
31 Dec 2024
-
1,901,713
2022 TIP (STI)
1 Jan 2024
3 Jan 2024
-
254,131
2022 TIP (LTI)
1 Jan 2025
1 Jan 2025
445,318
445,318
2023 TIP (LTI)
1 Jan 2026
1 Jan 2026
496,765
496,765
2024 TIP (STI)
1 Jan 2026
1 Jan 2026
352,614
-
2024 TIP (LTI)
1 Jan 2027
1 Jan 2027
681,695
-
As at 31 December
1,976,392
7,217,143
2024
2023
Weighted average remaining time until rights outstanding at the end of the
period automatically convert to ordinary shares.
25 months
7 months
No rights were awarded for the 2023 TIP (STI) component.
4.3.1
2022, 2023 and 2024 TIP schemes
The Company's current TIP is designed to align
reward outcomes with individual performance
and the performance of the Company and value
creation for shareholders over both the short and
long term. The framework was approved by the
Board in February 2022.
The TIP framework includes both a short-term
component ("STI") and a long-term incentive ("LTI").
The STI comprises 60% of the total TIP opportunity
with the LTI comprising the remaining 40%.
The number of rights awarded for each scheme
are based on the Volume Weighted Average Price
("VWAP") of the Company's shares for the first 20
business days of trading following the Group's results
announcement for the preceding financial year.
The following table summarises the grant date price
and VWAP for the each Scheme.
102 NEW ZEALAND MEDIA AND ENTERTAINMENT
Grant date
Share Price
at Grant Date
VWAP
2020 TIP scheme
5 Mar 2020
$0.36
$0.40
2021 TIP scheme
4 Dec 2020
$0.71
$0.74
2021 TIP scheme
10 Dec 2020
$0.66
$0.74
2021 TIP scheme
5 Nov 2021
$1.25
$0.74
2022 TIP scheme - STI and LTI
22 Apr 2022
$1.43
$1.39
2023 TIP scheme - STI and LTI
4 Jul 2023
$0.96
$1.15
2024 TIP scheme - STI and LTI
31 May 2024
$0.84
$0.93
STI component of the schemes
The STI is based on the performance of the
Company for the financial year measured in terms
of earnings and the achievement of various specific
targets set for each individual participant that
align with the Company’s strategic goals. The STI
component includes both a cash element and a
share rights element. The cash payment is payable
following the end of the financial year period, with
share rights issued at the same time and deferred
for an additional year before they vest, subject to
continued employment over that extended period.
STI Performance measures
•
A minimum EBITDA threshold to be met before
any STI awards will be payable.
•
Individual performance target payments
(60% to 130%).
% of target
% of target opportunity
awarded
< minimum target
0%
minimum up to 100%
Pro-rata vesting between
50% and 100%
> 100%
Potential of receiving 150%
Awards under the STI portion of the TIP are
granted to participants following the assessment
of performance. To the extent that performance
measures are met.
•
58.3% of awards are made in cash; and
•
41.7% of awards are granted in rights to acquire
fully paid ordinary shares in the Company for nil
consideration ("Rights").
The periods and dates relevant to each Scheme are
defined below:
•
Performance
period
the financial year of the
Scheme
•
Deferral period
the 12 months following the
end of the financial year to
which the scheme relates
•
Vesting date
of rights
1 January following the end
of the deferral period
It is assumed that all participating employees will
remain employed with the Company until the end
of the deferral period (unless already resigned).
LTI Performance measures
The LTI is based on a three-year performance period
commencing on 1 January of the financial year for
which the Scheme is offered with awards subject to
both earnings per share ("EPS") and total shareholder
return ("TSR") performance targets. The long-term
component comprises an issue of share rights
that may vest at the end of three years, subject
to achievement of the EPS and TSR performance
targets and continued employment by the Company.
The EPS and TSR components both comprise equal
portions of the LTI.
The Board will determine the performance of the
EPS and TSR compared to target and the Board
may adjust calculations at the relevant date to take
account of any capital reconstructions, corporate
transactions or any other circumstances which in
its opinion are appropriate in the circumstances
and consistent with the intention in respect of the
LTI performance conditions.
ANNUAL REPORT 2024 103
Continued
Notes to the consolidated
financial statements
The allocation of rights to participants of the scheme,
for both the EPS and TSR components, is based on
the following levels of performance:
% of target
% of target opportunity
awarded
•
< minimum
target
0%
•
minimum up to
100%
Pro-rata vesting between
50% and 100%
•
> 100%
100%
The periods and dates relevant to each scheme are
defined below:
•
Performance
period
36 months from 1 January
of the financial year for
which the scheme relates
•
Vesting date
of rights
A date after LTI
performance conditions
determined
Accounting policy
Total incentive plan ("TIP")
The fair value of rights granted under the TIP
plan is recognised as an employee benefits
expense with a corresponding increase in
equity over the vesting period, being the
performance period and the service period.
The fair value is measured at grant date and
the number of rights are determined using
the volume weighted average price of NZME's
shares on the NZX over the first 5 trading days
of the performance period, for the 2020 and
2021 TIP schemes, and the first 20 consecutive
NZX trading days after the release of the
Group's financial result for the preceding year
for the 2022, 2023 and 2024 TIP schemes.
The fair value at grant date is determined
taking into account the share price, any market
performance conditions and any non-vesting
conditions, but excluding the impact of any
service and non-market performance vesting
conditions.
Non-market vesting conditions are included in
assumptions about the number of rights that are
expected to vest. At each balance sheet date,
the Group revises its estimate of the number of
rights that are expected to become exercisable.
The performance target for the TSR component
of current and future incentive plans is a market
vesting condition which is taken into account
in calculating the grant date fair value. The
fair value reflects the likelihood of various TSR
outcomes and adjustments to unvested rights
are only made to reflect changes in the number
of participants that will meet the service
condition.
The employee benefits expense recognised
each period takes into account the most recent
estimate. The impact of the revision to the
original estimates, is recognised in profit or loss
with a corresponding adjustment to equity.
104 NEW ZEALAND MEDIA AND ENTERTAINMENT
4.4
Dividends
4.4.1
Dividend policy
The Group’s dividend policy is to pay dividends
of between 50-80% (2023: 50-80%) of free cash
flow while having regard to the Company’s capital
requirements, operating performance and financial
position. The payment of dividends is also subject to
the Company being within the leverage ratio range
of 0.5 to 1 times the rolling 12 month trading EBITDA.
The Board approved dividend payments for 2023
and 2024 were higher than the policy range with
the leverage ratio remaining at the lower end of
the target range.
4.4.2 Dividends paid and declared
Amounts recognised as distributions to equity holders during the year:
2024
Cents per
Share
2023
Cents per
Share
2024
$'000
2023
$'000
Final dividend for 2023 declared
20 February 2024, paid 20 March 2024
6.0
6.0
11,201
11,035
Interim dividend for 2024, declared
26 August 2024, paid 25 September 2024
3.0
3.0
5,600
5,517
Total dividends declared and paid during
the year
16,801
16,552
Supplementary final dividend for 2023
paid 20 March 2024
1.06
1.06
1,494
1,514
Supplementary interim dividend for 2024
paid 25 September 2024
0.53
0.88
680
589
Total supplementary dividends declared
and paid
2,174
2,103
Proposed final dividend for the year ended
31 December 2024
6.0
6.0
11,274
11,201
The dividends paid in 2024 and 2023 were not franked.
Supplementary dividends were paid to registered
shareholders who were not tax residents in New
Zealand and who held less than 10% of the shares
in the Company at the record date for the related
distribution.
The proposed dividend, declared by the Board of
Directors on 25 February 2025, is to be paid on
31 March 2025 to registered shareholders as at
19 March 2025.
4.4.3 Imputation credits
2024
$’000
2023
$’000
Imputation credits available for subsequent reporting periods based on the
New Zealand 28% tax rate for the Group
22,642
24,205
ANNUAL REPORT 2024 105
Continued
Notes to the consolidated
financial statements
4.5
Interest bearing liabilities
The following table details the Group’s combined net debt at 31 December 2024.
The movements in these balances during the year are provided in note 4.5.1 Secured bank loans and note
4.5.2 Lease liabilities.
2024
$’000
2023
$’000
Bank loans
28,731
23,490
Cash and cash equivalents
(4,641)
(5,524)
Net bank debt
24,090
17,966
Lease liabilities
79,836
84,677
Net debt at 31 December
103,926
102,643
4.5.1
Secured bank loans
2024
$’000
2023
$’000
Bank loans
As at 1 January
23,490
23,134
Proceeds from borrowings
124,000
82,500
Repayments of borrowings
(119,000)
(82,500)
Amortisation of borrowing costs
98
98
Loan modification adjustment
143
258
As at 31 December
28,731
23,490
Cash and cash equivalents
As at 1 January
(5,524)
(5,670)
Cash flows
883
146
As at 31 December
(4,641)
(5,524)
Net bank debt
24,090
17,966
The Group is funded from a combination of its
own cash reserves and NZ$50.0 million bilateral
bank loan facilities, which NZME refinanced on
21 November 2018, 22 July 2020 and 9 December
2022, of which $29.0 million (2023: $24.0 million)
is drawn and $21.0 million (2023: $26.0 million)
is undrawn as at 31 December 2024. This facility
expires on 31 January 2026. The Group expects to
be able to renew the debt within the normal course
of business.
The interest rate for the drawn facility is
the BKBM plus credit margin.
The NZME bilateral facilities contain undertakings
which are customary for facilities of this nature
including, but not limited to, provision of
information, negative pledge and restrictions on
priority indebtedness and disposals of assets.
The assets of the Group are collateral for the interest
bearing liability.
In addition, the Group must comply with financial
covenants (a net debt to EBITDA ratio and an EBITDA
to net interest expense ratio) for each 12 month
period ending on 31 March, 30 June, 30 September
and 31 December. The Group has complied with
these covenants throughout the year.
106 NEW ZEALAND MEDIA AND ENTERTAINMENT
4.5.2 Lease liabilities
2024
$’000
2023
$’000
As at 1 January
Current lease liabilities
12,572
11,596
Non-current lease liabilities
72,105
79,578
Total lease liabilities
84,677
91,174
Interest on lease liabilities
4,593
4,703
New leases
7,424
1,100
Changes in scope, lease terms and other adjustments
1,560
5,544
Total lease liabilities before cash payments
98,254
102,521
Interest paid on leases
(4,593)
(4,703)
Principal payments
(13,825)
(13,141)
Total cash payments
(18,418)
(17,844)
Total lease liabilities at 31 December
79,836
84,677
Current lease liabilities
13,690
12,572
Non-current lease liabilities
66,146
72,105
Total lease liabilities at 31 December
79,836
84,677
Accounting policy
Borrowings are initially recognised at fair value less attributable transaction costs and subsequently
measured at amortised cost. Any difference between cost and redemption value is recognised in
the income statement over the period of the borrowing on an effective interest basis.
Costs incurred in connection with the arrangement of borrowings are deferred and amortised over
the period of the borrowing. These costs are netted off against the carrying value of borrowings in
the balance sheet.
ANNUAL REPORT 2024 107
Continued
Notes to the consolidated
financial statements
4.6
Cash flow information
2024
$’000
2023
$’000
Reconciliation of net cash inflows from operating activities
to (loss) / profit for the year:
(Loss) / profit for the year
(16,040)
12,200
Depreciation and amortisation
29,886
28,623
Borrowing cost amortisation
98
98
Non-cash movement on overhedged swaps
-
74
Loan modification adjustment
143
258
Change in current / deferred tax
(1,675)
(2,261)
Loss on sale of non-current assets
90
-
Group's share of retained losses in joint ventures' and associates'
210
675
Impairment of intangible assets
24,000
-
Impairment of equity accounted investments
733
-
Lease adjustments
(26)
68
Share based payment expense
354
341
Change in BusinessDesk earn-out provision
-
(413)
Changes in assets and liabilities:
Trade and other receivables
(399)
4,122
Inventories
2,588
560
Prepayments
150
631
Trade and other payables and employee entitlements
(2,255)
(3,470)
Net cash inflows from operating activities
37,857
41,506
Accounting policy
For the purposes of presentation on the statement of cash flows, cash and cash equivalents
includes cash on hand and short term deposits held at call with finance institutions, net of bank
overdrafts.
108 NEW ZEALAND MEDIA AND ENTERTAINMENT
4.7
Financial risk management
4.7.1
Capital and risk management
The Group's objectives when managing capital
are to:
•
safeguard their ability to continue as a going
concern, so that they can continue to provide
returns for shareholders and benefits for other
stakeholders; and
•
maintain an optimal capital structure to reduce
the cost of capital.
In order to maintain or adjust the capital structure,
the Group may adjust the amount of dividends paid
to shareholders, return capital to shareholders, issue
new shares or sell assets to reduce debt.
Refer to note 4.5 for undrawn facilities to which
the Group has access to as well as the net debt
calculation that is used by the Group to manage
capital requirements.
The Group’s activities expose it to a variety
of financial risks:
•
market risk, including interest rate risk and
price risk;
•
credit risk; and
•
liquidity risk.
The Group’s overall risk management programme
focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on
the financial performance of the Group. The Group
uses different methods to measure different types
of risk to which it is exposed. These methods include
sensitivity analysis in the case of interest rate and
ageing analysis for credit risk.
Financial risk management is carried out by the
Group Treasury function. The Group Treasury
function meet regularly with the Group Chief
Financial Officer to cover specific areas, such as
interest rate risk and credit risk, use of derivative
financial instruments and non-derivative financial
instruments, and investment of excess liquidity.
Due to the Group's limited operations in foreign
jurisdictions, the Group does not have a significant
foreign exchange exposure.
4.7.2
Market risk
Cash flow and fair value interest rate risk
Long term borrowings issued at variable rates expose
the Group to cash flow interest rate risk. Borrowings
issued at fixed interest rates expose the Group to
fair value interest rate risk however this risk is not
significant.
Based on the outstanding net floating debt at
31 December 2024 a change in interest rates of
+/-1% per annum with all other variables being
constant would have impacted post-tax profit
and equity by $0.2 million lower / higher
(2023: $0.2 million lower / higher).
Price risk
The Group is not exposed to significant price risk.
There is some risk associated with other financial
assets however this is not deemed to be significant.
4.7.3 Credit risk
Credit risk is managed on a Group basis. Credit risk
arises from cash and cash equivalents and deposits
with banks and financial institutions, as well as
credit exposures to wholesale and retail customers,
including outstanding receivables and committed
transactions. For banks and financial institutions,
the creditworthiness is assessed prior to entering
into arrangements and approved by the Board. For
other customers, NZME's credit control department
assesses the credit quality, taking into account
financial position, past experience and other factors.
The utilisation of credit limits is regularly monitored
and the Group does not normally obtain collateral
from its customers.
ANNUAL REPORT 2024 109
Continued
Notes to the consolidated
financial statements
The table below sets out additional information about the credit quality of trade receivables net of the
provision for impairment.
Past due
Current
$’000
Less than
one month
$’000
One to
three
months
$’000
Three to six
months
$’000
Over six
months
$'000
Total
$'000
31 December 2024
Expected loss rate
0.5%
1.9%
5.6%
13.7%
26.4%
Trade receivables
25,646
6,628
1,989
957
941
36,161
Impaired receivables
(134)
(123)
(111)
(131)
(248)
(747)
Total
25,512
6,505
1,878
826
693
35,414
31 December 2023
Expected loss rate
0.5%
1.0%
6.3%
10.6%
15.3%
Trade receivables
20,735
7,725
1,718
1,403
1,249
32,830
Impaired receivables
(102)
(81)
(108)
(149)
(191)
(631)
Total
20,633
7,644
1,610
1,254
1,058
32,199
Trade receivables are generally settled within 30 to 45
days. The Directors consider the carrying amount of
trade receivables approximates to their net fair value.
Trade receivables are monitored on an individual basis
and the Company considers the probability of default
upon initial recognition of the trade receivable and
throughout the year and provides for trade receivables
considered to be impaired.
As at 31 December 2024, trade receivables of
$3,397,000 (2023: $3,922,000) were past due
but not impaired.
The maximum exposure to credit risk at
31 December 2024 is equal to the carrying
amount of cash and cash equivalents and trade
and other receivables. The Group manages any
concentration of credit risk for its banks and
financial institutions through creditworthiness
assessments. The Group is not exposed to credit
risk within trade and other receivables.
Credit risk further arises in relation to financial
guarantees given to certain parties from time to time.
4.7.4 Liquidity risk
Prudent liquidity risk management implies maintaining
sufficient cash and marketable securities, the
availability of funding through an adequate amount
of committed credit facilities and the ability to close
out market positions. Due to the dynamic nature
of the underlying business, Group Treasury aims
at maintaining flexibility in funding by keeping
committed credit lines available. Management
monitors rolling forecasts of the Group’s liquidity
reserve on the basis of expected cash flows.
The following tables analyse the Group’s financial
liabilities including interest to maturity into relevant
maturity groupings based on the remaining period
at the balance sheet date to the contractual maturity
date. The amounts disclosed in the tables are the
contractual undiscounted cash flows.
110 NEW ZEALAND MEDIA AND ENTERTAINMENT
Less than
one year
$’000
Between one
and two years
$’000
Between
two and
five years
$’000
Over five
years
$’000
Total cash
flows
$’000
31 December 2024
Trade, other payables and accruals
29,062
360
-
-
29,422
Lease liabilities
17,373
16,473
45,739
13,020
92,605
Bank loans
2,175
29,000
-
-
31,175
Total
48,610
45,833
45,739
13,020
153,202
31 December 2023
Trade, other payables and accruals
25,271
350
326
-
25,947
Lease liabilities
16,660
15,802
43,875
23,437
99,774
Bank loans
2,040
2,040
26,040
-
30,120
Total
43,971
18,192
70,241
23,437
155,841
4.8
Fair value measurement
The Group measures and recognises the
following assets and liabilities at fair value
on a recurring basis:
•
Financial assets at fair value through
profit or loss (FVTPL);
•
Land and buildings (excluding leasehold
improvements).
4.8.1 Fair value hierarchy
NZ IFRS 13 requires disclosure of fair value
measurements by level of the following fair
value measurement hierarchy:
•
Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities;
•
Level 2: inputs other than quoted prices included
within level 1 that are observable for the asset or
liability, either directly or indirectly; and
•
Level 3: inputs for the asset or liability that
are not based on observable market data
(unobservable inputs).
4.8.2 Recognised fair value measurements
Note
2024
$’000
2023
$’000
Recurring fair value measurements
Non-financial assets (Level 3)
Freehold land
3.2
580
265
Buildings
3.2
245
54
Total non-financial assets
825
319
ANNUAL REPORT 2024 111
Continued
Notes to the consolidated
financial statements
Other financial assets are measured at amortised
cost and comprise of a loan to Eventfinda NZ Ltd.
The loan is interest bearing and is repayable under
certain conditions.
All fair value measurements referred to above are in
either level 2 or level 3 of the fair value hierarchy and
there were no transfers between levels. The Group’s
policy is to recognise transfers between fair value
hierarchy levels as at the end of the year.
4.8.3 Disclosed fair values
The Group also has a number of assets and liabilities
which are not measured at fair value but for which
fair values are disclosed in these notes.
The carrying amounts of current trade receivables
and payables are assumed to approximate their fair
values due to their short-term nature.
The fair value of the non-current trade receivables
are assumed to approximate their carrying values as
the balances comprise of prepayments in relation
to cash already received by the Group and lease
receivables where the carrying value has been
calculated based on net present values of future
cash inflows.
The fair value of interest bearing liabilities disclosed
in note 4.5 is estimated by discounting the future
contractual cash flows at the current market
interest rates that are available to the Group for
similar financial instruments. For the year ended
31 December 2024, the borrowing rates were
determined to be between 6.4% and 7.9% (2023:
between 6.1% and 7.9%), depending on the
type of borrowing. The fair value of borrowings
approximates the carrying amount, as the impact
of discounting is not significant (level 2).
4.8.4 Valuation techniques used to derive
at level 2 and 3 fair values
Recurring fair value measurements
The fair value of financial instruments that are not
traded in an active market is determined using
valuation techniques. These valuation techniques
maximise the use of observable market data where
it is available and rely as little as possible on entity
specific estimates. If all significant inputs required
to fair value an instrument are observable, the
instrument is included in level 2.
If one or more of the significant inputs is not based
on observable market data, the instrument is
included in level 3.
The Group uses Directors' valuations, supported by
an independent valuation performed in February
2024, for its freehold land and buildings less
subsequent depreciation for buildings, to ensure
that the carrying value of the assets is materially
consistent with their fair value. The land and
buildings owned by the Group are transmission
sites and associated buildings, and as such are
specialised and have limited saleability. The best
evidence of fair value is current prices in an active
market for similar properties; however, these are not
readily available for such specialised sites in such
locations. The Directors believe that the current
carrying value of the assets equates to their fair
value given the nature and location of the assets.
All resulting fair value estimates for properties are
included as level 3.
112 NEW ZEALAND MEDIA AND ENTERTAINMENT
5.0 Taxation
5.1
Income tax expense
2024
$’000
2023
$’000
Reported income tax expense comprises:
Current tax expense
2,648
5,920
Deferred tax expense / (benefit)
1,119
(858)
(Over) / under provision in prior years
(229)
516
Income tax expense
3,538
5,578
Income tax expense differs from the amount prima facie payable
as follows:
(Loss) / profit before income tax expense
(12,502)
17,778
Prima facie income tax at 28%
(3,501)
4,978
Non-assessable loss from equity accounting of investments in joint
ventures and associates
59
165
Non-deductible expenses
283
145
Share schemes' assessable cost
-
(226)
Non-deductible impairment
6,926
-
(Over) / under provision in prior years
(229)
516
Income tax expense
3,538
5,578
ANNUAL REPORT 2024 113
Continued
Notes to the consolidated
financial statements
5.2
Deferred tax
Deferred tax assets and liabilities are attributable to:
Opening
balance
Restated A
$’000
Recognised
in income
$’000
Recognised
in equity
$’000
Closing
balance
$’000
2023
Employee entitlements
1,357
(266)
-
1,091
Provision for impairment
145
32
-
177
Accruals / restructuring
(22)
309
-
287
Intangible assets
(307)
37
-
(270)
Property, plant and equipment
932
411
-
1,343
Right-of-use assets A
(19,651)
1,751
-
(17,900)
Lease liabilities
25,529
(1,819)
-
23,710
Finance lease receivables
(1,391)
149
-
(1,242)
Share schemes
1,024
96
892
2,012
Other
(157)
158
-
1
As at 31 December 2023
7,459
858
892
9,209
2024
Employee entitlements
1,091
(318)
-
773
Provision for impairment
177
32
-
209
Accruals / restructuring
287
(130)
-
157
Intangible assets
(270)
37
-
(233)
Property, plant and equipment
1,343
519
-
1,862
Right-of-use assets
(17,900)
1,220
-
(16,680)
Lease liabilities
23,710
(1,356)
-
22,354
Finance lease receivables
(1,242)
69
-
(1,173)
Share schemes
2,012
(1,199)
(26)
787
Other
1
7
-
8
As at 31 December 2024
9,209
(1,119)
(26)
8,064
A The opening deferred tax balance has been restated. Refer to note 1.2.2 for details of the restatement.
There are unrecognised tax losses of $1,928,824 (A$1,744,812) (2023: $1,881,808 (A$1,744,812)) in an
Australian subsidiary of the Company which have not been recognised as there is uncertainty as to their
future recoverability. The deferred tax asset on these losses was not offset against the deferred tax liabilities
of the rest of the Group because they are levied by a different tax authority.
114 NEW ZEALAND MEDIA AND ENTERTAINMENT
Accounting policies
The tax expense for the year comprises
current and deferred tax. Tax is recognised in
the income statement, except to the extent
that it relates to items recognised in other
comprehensive income or directly in equity.
In this case the tax is also recognised in other
comprehensive income or directly in equity,
respectively.
Assets and liabilities are offset when there is a
legally enforceable right to offset current tax
assets against current tax liabilities and when
the deferred income tax assets and liabilities
relate to income taxes levied by the same
taxation authority on either the same taxable
entity or different taxable entities where there
is an intention to settle the balances on a net
basis.
Income tax
The current income tax charge is calculated
on the basis of the tax laws enacted or
substantively enacted at the balance sheet
date in the countries where the Company and
its subsidiaries operate and generate taxable
income. Management periodically evaluates
positions taken in tax returns with respect to
situations in which applicable tax regulation is
subject to interpretation. It establishes provision
where appropriate on the basis of amounts
expected to be paid to the tax authorities.
Deferred tax
Deferred tax is recognised, using the liability
method, on temporary differences arising
between the tax bases of assets and liabilities
and their carrying amounts in the consolidated
financial statements. However, deferred tax
liabilities are not recognised if they arise from
the initial recognition of goodwill; deferred
income tax is not accounted for if it arises from
initial recognition of an asset or liability in a
transaction other than a business combination
that at the time of the transaction affects neither
accounting nor taxable profit or loss. Deferred
income tax is determined using tax rates (and
laws) that have been enacted or substantially
enacted by the balance sheet date and are
expected to apply when the related deferred
income tax asset is realised or the deferred
income tax liability is settled.
Assets are recognised only to the extent that
it is probable that future taxable profit will
be available against which the temporary
differences can be utilised.
Tax is provided on temporary differences arising
on investments in subsidiaries and associates,
except for tax liabilities where the timing of
the reversal of the temporary difference is
controlled by the Group and it is probable that
the temporary difference will not reverse in the
foreseeable future.
ANNUAL REPORT 2024 115
Continued
Notes to the consolidated
financial statements
6.0 Group structure and investments in other entities
6.1
Controlled entities
The consolidated financial statements incorporate
the assets, liabilities and results of the subsidiaries
listed below. Unless otherwise stated, they have
share capital consisting solely of ordinary shares
that are held directly by the Group, and the
proportion of ownership interest held equals the
voting rights held by the Group. All entities are
incorporated in, and operate in, New Zealand and
the ownership interest is 100% unless otherwise
stated. There were no changes in control during the
year ended 31 December 2024.
Name of entity
Name of entity
NZME Advisory Limited
NZME Radio Investments Limited
NZME Australia Pty Limited A
NZME Radio Limited B
NZME Educational Media Limited
NZME Specialist Limited
NZME Holdings Limited
The Hive Online Limited
NZME Investments Limited
New Zealand Radio Network Limited
NZME Print Limited
The Radio Bureau Limited
NZME Publishing Limited
OneRoof Limited
A Incorporated in, and operates in, Australia.
B One "Kiwi Share" held by the Minister of Finance. The rights and obligations are set out in the
NZME Radio constitution.
Accounting policy
The Group controls an entity when the Group is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power
to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are de-consolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group
companies are eliminated. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the Group. Non-controlling
interests in the results and equity of subsidiaries are shown separately in the consolidated
income statement, statement of comprehensive income, statement of changes in equity
and balance sheet respectively.
116 NEW ZEALAND MEDIA AND ENTERTAINMENT
6.2
Interests in other entities
6.2.1
Associates, joint ventures and joint operations
The Group has the following associates, joint ventures and joint operations:
2024
Ownership
Interest
2023
Ownership
Interest
Name of entity
Eveve New Zealand Limited A
40%
40%
New Zealand Press Association Limited A
38.82%
38.82%
Restaurant Hub Limited A
38%
38%
The Beacon Printing & Publishing Company Limited A
21%
21%
The Gisborne Herald Company Limited A
49%
49%
The Wairoa Star Limited A
40.41%
40.41%
The Radio Bureau B
50%
50%
A These entities are classified as joint ventures or associates and are accounted for using the equity method
in the consolidated financial statements.
B The Radio Bureau is classified as a joint operation and the Group has included its direct right to the assets,
liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets,
liabilities, revenues and expenses in these consolidated financial statements.
6.2.2 Equity accounted investments
2024
$’000
2023
$’000
As at 1 January
2,768
3,443
Share of operating losses
(210)
(588)
Dividends received
-
(87)
Impairment of investments
(733)
-
As at 31 December
1,825
2,768
An impairment of $0.7 million has been recognised in the income statement as a result of evidence that
the economic performance of two of the Group’s investments is worsening, and with no clear indications
of an improving outlook, it is unlikely performance will improve. Accordingly, the recoverable amount of
these investments has been assessed at zero.
The equity accounted investments are not considered to be material to the Group's operations or results and
therefore no disclosures of the summarised financial information for these investments have been made.
ANNUAL REPORT 2024 117
Continued
Notes to the consolidated
financial statements
Accounting policies
Associates
Associates are all entities over which the Group
has significant influence but not control or joint
control. Interests in associates are accounted
for in the consolidated financial statements
using the equity method (see below), after
initially being recognised at cost. The Group’s
investment in associates includes goodwill (net
of any accumulated impairment loss) identified
on acquisition.
Joint arrangements
Under NZ IFRS 11: Joint Arrangements
investments in joint arrangements are classified
as either joint operations or joint ventures.
The classification depends on the contractual
rights and obligations of each investor, rather
than the legal structure of the joint arrangement.
The Group recognises its direct right to the
assets, liabilities, revenues and expenses of
joint operations and its share of any jointly held
or incurred assets, liabilities, revenues and
expenses. These have been incorporated in the
consolidated financial statements under the
appropriate headings.
The Group's interests in joint ventures are
accounted for using the equity method
(see below) after initially being recognised
at cost in the consolidated balance sheet.
Equity method of accounting
Under the equity method of accounting, the
investments are initially recognised at cost and
adjusted thereafter to recognise the Group’s
share of the post-acquisition profits or losses
of the investee in profit or loss, and the Group’s
share of movements in other comprehensive
income of the investee in other comprehensive
income. Dividends received or receivable from
associates and joint ventures are recognised
as a reduction in the carrying amount of the
investment.
When the Group’s share of losses in an equity-
accounted investment equals or exceeds
its interest in the entity, including any other
unsecured long-term receivables, the Group
does not recognise further losses, unless it
has incurred obligations or made payments
on behalf of the other entity.
Unrealised gains on transactions between the
Group and its associates and joint ventures
are eliminated to the extent of the Group’s
interest in these entities. Unrealised losses
are also eliminated unless the transaction
provides evidence of an impairment of the
asset transferred. Accounting policies of equity
accounted investees have been changed where
necessary to ensure consistency with the
policies adopted by the Group.
118 NEW ZEALAND MEDIA AND ENTERTAINMENT
7.0
Related parties
7.1
Key management compensation
Note
2024
$’000
2023
$’000
Total remuneration for Directors and other
key management personnel:
Short term benefits
4,128
5,403
Post-employment benefits
89
123
Termination benefits
-
335
Dividends (relating to shares held in the Company during the year)
325
211
Share-based payments
4.2
354
341
4,896
6,413
The table above includes remuneration of the Board of Directors and the Executive Team, including amounts
paid to members of the Executive Team who left during the year. Where a staff member was acting in a
position on the Executive Team, that portion of their remuneration has been included in the table above.
7.2
Other transactions with related parties
The following table details the year end balances between the Group and its associates.
2024
$’000
2023
$’000
Balances with associates
Receivables
336
330
The following table details the transactions between the Group and its associates during the year.
2024
$’000
2023
$’000
Transactions with associates
Advertising revenue earned
12
33
Services provided by the Group
296
731
Services received by the Group
(34)
(2)
8.0 Commitments and
contingent liabilities
The Group is subject to litigation incidental to the
business, none of which is expected to be material.
9.0 Subsequent events
The Directors are not aware of any material events
subsequent to the balance sheet date.
ANNUAL REPORT 2024 119
Independent auditor’s report
To the shareholders of NZME Limited
Our opinion
In our opinion, the accompanying consolidated financial statements (the financial statements) of
NZME Limited (the Company), including its subsidiaries (the Group), present fairly, in all material
respects, the financial position of the Group as at 31 December 2024, its financial performance, and its
cash flows for the year then ended in accordance with New Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS) and International Financial Reporting Standards Accounting
Standards (IFRS Accounting Standards).
What we have audited
The Group's financial statements comprise:
●
the consolidated balance sheet as at 31 December 2024;
●
the consolidated income statement for the year then ended;
●
the consolidated statement of comprehensive income for the year then ended;
●
the consolidated statement of changes in equity for the year then ended;
●
the consolidated statement of cash flows for the year then ended; and
●
the notes to the financial statements, comprising material accounting policy information and other
explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the financial statements section of our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards Board and the
International Code of Ethics for Professional Accountants (including International Independence
Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), and we
have fulfilled our other ethical responsibilities in accordance with these requirements.
In our capacity as auditor and assurance practitioner, our firm provides review services and, for the
year ended 31 December 2023, our firm provided other assurance services in relation to greenhouse
gas emissions. Our firm also has a corporate subscription with the Group on normal terms. In addition,
certain partners and employees of our firm may deal with the Group on normal terms within the
ordinary course of trading activities of the business. The firm has no other relationship with, or
interests in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current year. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, www.pwc.co.nz
120 NEW ZEALAND MEDIA AND ENTERTAINMENT
Description of the key audit matter
How our audit addressed the key audit matter
Impairment assessment of indefinite life
intangible assets
As at 31 December 2024, the total carrying
amount of the Group’s indefinite life
intangible assets, comprising goodwill,
masthead brands and other brands (the
assets), amounted to $81.1 million, after
recording an impairment of $24.0 million
during the year.
The assets have been allocated to the
Group’s Audio and Publishing cash
generating units (CGUs). Annual impairment
testing for indefinite life intangible assets is
required under NZ IFRS.
To assess the recoverable amount of these
assets, the Group prepared discounted cash
flow models on a Value-In-Use (VIU) basis.
Where impairment was identified on a VIU
basis; the fair value less cost of disposal
(FVLCOD) was also calculated and the
recoverable amount of the CGUs were
based on the higher of VIU or FVLCOD.
The impairment assessment is considered a
key audit matter due to the significance of
the carrying value of the assets as well as
the inherent judgements involved in
performing an impairment assessment. Key
estimates and assumptions included in the
VIU and FVLCOD impairment assessments
are:
●
the expected future cash flows of each
CGU, which include estimates and
assumptions around revenue;
●
discount rates; and
●
long-term growth rates.
Based on the assumptions above, an
impairment of the assets held within the
Publishing CGU has been recognised. No
impairment was identified in the Audio CGU.
Management determined that reasonably
possible adverse change in the key
assumptions of the Publishing CGU may
result in further impairment.
Refer to note 3.1.1 of the financial
statements for further information.
We performed the following audit procedures in
relation to the impairment assessment and key
management judgements:
●
held discussions with management and
understood the processes undertaken and basis
for determining the key assumptions;
●
evaluated the design of controls regarding
management’s process to assess impairment,
determined if they are designed effectively, and
confirmed that they have been implemented;
●
considered the appropriateness of
management’s CGU assessment;
●
considered the appropriateness of the basis of
allocation of the Group’s assets and liabilities
and the forecast cash flows to the CGUs;
●
considered the reasonableness of unallocated
costs and whether these should be allocated to
a CGU;
●
gained an understanding of the forecast outlook
for the industry and the strategic direction of the
business; and
●
performed our own sensitivity assessment on
the cash flow forecasts to determine whether
reasonably possible adverse changes in the key
assumptions would result in further impairment.
In relation to the recoverable amounts determined
using VIU for the Audio CGU and FVLCOD for the
Publishing CGU, we:
●
tested the mathematical accuracy of the
calculations and the resulting impairment;
●
compared the forecast cash flows used for 2025
to the Board approved budget which is adjusted
to comply with NZ IAS 36 requirements;
●
assessed and challenged the reasonableness of
the forecast cash flows used for 2026 to 2029,
including management’s estimates and
assumptions around forecast revenues, with
reference to historical performance and external
market evidence; and
●
engaged our auditor’s valuation expert to assist
us to assess and challenge the reasonableness
of the discount rates and terminal growth rates.
We also considered the appropriateness of
disclosures made including key assumptions and
sensitivities.
PwC
ANNUAL REPORT 2024 121
Our audit approach
Overview
Overall group materiality: $1,710,000, which represents
approximately 0.5% of total revenue.
We chose total revenue as the benchmark because, in our
view, it is the benchmark against which the performance of the
Group is most commonly measured by users, and is a
generally accepted benchmark. In our judgement, revenue
provides a more stable measure for establishing our materiality
benchmark and best reflects performance of the Group. We
chose 0.5% based on our professional judgement, noting that it
is also within the range of commonly accepted thresholds for
entities where revenue is considered the appropriate
benchmark.
We performed a full scope audit over the consolidated
information of the Group.
As reported above, we have one key audit matter, being:
●
Impairment assessment of indefinite life intangible assets.
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements. In particular, we considered where management made
subjective judgements; for example, in respect of significant accounting estimates that involved
making assumptions and considering future events that are inherently uncertain. As in all of our audits,
we also addressed the risk of management override of internal controls, including among other
matters, consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the financial statements as a whole as set out above. These,
together with qualitative considerations, helped us to determine the scope of our audit, the nature,
timing and extent of our audit procedures, and to evaluate the effect of misstatements, both
individually and in the aggregate, on the financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion
on the financial statements as a whole, taking into account the structure of the Group, the accounting
processes and controls, and the industry in which the Group operates.
Other information
The Directors are responsible for the other information. The other information comprises the
information included in the Annual Report, but does not include the financial statements and our
auditor’s report thereon.
PwC
122 NEW ZEALAND MEDIA AND ENTERTAINMENT
Our opinion on the financial statements does not cover the other information and we do not express
any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If, based on the work we have performed on the other information that we obtained prior to
the date of this auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the financial statements in accordance with NZ IFRS and IFRS Accounting Standards, and for such
internal control as the Directors determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern, and using the
going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole,
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the
External Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report, or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Lisa Crooke.
For and on behalf of
PricewaterhouseCoopers
Auckland
25 February 2025
PwC
ANNUAL REPORT 2024 123
Directory
Registered Address
NZME Limited, 2 Graham Street,
Auckland 1010, New Zealand
Registred Office Contact Details
Postal Address: Private Bag 92198,
Victoria Street West, Auckland 1142, New Zealand
Phone: +64 9 379 5050
Website: www.nzme.co.nz
Email: Investor_Relations@nzme.co.nz
Auditors
PricewaterhouseCoopers
Principal Bankers
Westpac
Principal Solicitors
Bell Gully
Share Registry
MUFG Pension & Market Services,
Postal Address: PO Box 91976
Auckland 1142
Street Address: Level 30 PwC Tower
15 Customs Street West
Auckland
Phone: +64 9 375 5998
Website: www.mpms.mufg.com
Email: enquiries.nz@cm.mpms.mufg.com
124 NEW ZEALAND MEDIA AND ENTERTAINMENT
ANNUAL REPORT 2024 125