NZME Full Year Results

NZME Limited
Results for announcement to the market

Reporting Period 12 months to 31 December 2016
Previous Reporting Period 12 months to 31 December 2015

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ 407,856 -5.2%
Profit (loss) from ordinary
activities after tax
attributable to security
holder
$NZ (50,552) -392.3%
Net profit (loss)
attributable to security
holders
$NZ 74,543 73.8%

Final Dividend Amount per security Imputed amount per
security
NZ 6.0 cents NZ 2.3333 cents
i

i A supplementary dividend of NZ 1.0588 cents per security will be payable to shareholders who are not tax resident
in New Zealand and who hold less than 10% of the shares in NZME Limited.

Record Date 11 April 2017
Dividend Payment Date 28 April 2017

Comments: A brief For the 12 months to 31 December 2016, NZME
Limited’s reported loss from ordinary activities after tax
was NZ$ 50.6 million compared to a loss of NZ$10.3 in
the comparative period. The loss from ordinary
activities contains some significant non-repeating tax
adjustments in relation to the settlement of historical
matters with the IRD.

The net profit after tax for the year to 31 December
2016 of NZ$ 74.5 million, including non-controlling
interest profit of NZ$ 13.9 million relating to the first six
months prior to the demerger from APN, includes the
impact of the demerger from APN in June 2016. This is
up 73.8% for the comparative period.

Net assets per share as at 31 December 2016 was NZ$
1.46 compared to NZ$ 3.22 as at 31 December 2015.

Net tangible assets per share as at 31 December 2016
was NZ$ (0.23) compared to NZ$ 0.18 as at 31
December 2015

Refer to the attached audited Consolidated Financial Statements for the year ended
31 December 2016 for NZME Limited and its subsidiaries and the Results
Presentation for a more detailed analysis and explanation.

---

1
CONSOLIDATED FINANCIAL
STATEMENTS
for the year ended 31 December 2016

2
CONTENTS
* In an attempt to make these financial statements easier to read, the notes to the financial statements have been grouped into
seven 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
shaded for ease of reference. Key judgments and estimates relevant to a particular note are also included in the relevant
note, and are clearly marked as such. A summary of the key judgments and estimates are also included under the Basis of
Preparation section on pages 9 to 11.
CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2016

Directors’ Statement 3
Consolidated Income Statement 4
Consolidated Statement of Comprehensive Income 5
Consolidated Balance Sheet 6
Consolidated Statement of Changes in Equity 7
Consolidated Statement of Cash Flows 8
Notes to the Consolidated Financial Statements*
Basis of Preparation 9
Group Performance 12
Operating Assets and Liabilities 18
Capital Management 28
Taxation 40
Group Structure and Investments in Other Entities 44
Other Notes 53
Independent Auditors’ Report 56

3
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 2016, incorporating the
consolidated financial statements and the
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 2016 and the results of
the Group’s operations and cash flows for the year
when ended.
The consolidated financial statements for the Group as
presented on pages 2 to 55 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
Sir John Anderson
Director
Carol Campbell
Director
DIRECTORS’ STATEMENT
Date: 23 February 2017
Sir John Anderson
Director
Carol Campbell
Director

4
NOTE
2016
$’000
2015
$’000
CONTINUING OPERATIONS
Revenue2.1
407,856
430,198
Finance and other income 2.1
2,340
1,544
Total revenue and other income
2.1
410,196
431,742
Expenses from operations before finance costs, depreciation,
amortisation
2.2.1
(363,553)
(400,726)
Depreciation & amortisation2.2.2
(23,845)
(23,683)
Finance costs2.2.3
(9,300)
(18,808)
Profit / (loss) from continuing operations before income
tax expense
13,498
(11,475)
Income tax expense5.1
(64,050)
1,207
Profit / (loss) from continuing operations for the year(50,552)
(10,268)
DISCONTINUED OPERATIONS
Profit / (loss) after tax from discontinued operations6.1.1
125,095
53,165
Profit / (loss) for the year

74 ,5 4 3
42,897
PROFIT / (LOSS) FOR THE YEAR IS ATTRIBUTABLE TO:
Owners of the Company
60,618
24,735
Non-controlling interests
13,925
18,162
Profit / (loss) for the year

74 ,5 4 3
42,897
NOTE
CENTS
CENTS
Earnings per share from continuing operations
attributable to the ordinary shareholders of the company
Basic / diluted earnings per share2.3
(28.0)
(6.6)
Earnings per share from profit for the year (continuing
and discontinued operations) attributable to the ordinary
shareholders of the Company
Basic / diluted earnings per share2.3
30.9
12.6
The above Consolidated Income Statement should be read in conjunction with the accompanying notes.
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2016

5
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2016
NOTE
2016
$’000
2015
$’000
Profit for the year74 ,5 4 3
42,897
OTHER COMPREHENSIVE INCOME
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations4.2
44,846
3,606
Items that will not be reclassified to profit or loss
Revaluation of freehold land and buildings4.2
-
356
Exchange and other differences applicable
to non-controlling interests
(14,683)
7,1 1 0
Other comprehensive income, net of tax30,163
11,072
Total comprehensive income104,706
53,969
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company
105,464
28,697
Non-controlling interests
(758)
25,272
104,706
53,969
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO
OWNERS OF THE COMPANY:
Continuing operations
(10,038)
(8,951)
Discontinued operations
115,502
37,6 4 8
105,464
28,697

6
NOTE
2016
$’000
2015
$’000
CURRENT ASSETS
Cash and cash equivalents4.7
16,242
11,065
Trade and other receivables3.3
53,631
409,870
Inventories
2,226
2,956
Tax receivable
-
770
Total current assets72,099
424,661
NON-CURRENT ASSETS
Intangible assets3.1
329,776
597,100
Property, plant and equipment3.2
75,677
99,216
Other financial assets6.4.3
5,988
128,386
Deferred tax assets5.2
-
46,065
Total non-current assets411,441
870,767
Total assets483,540
1,295,428
CURRENT LIABILITIES
Trade and other payables3.4
66,379
426,197
Interest bearing liabilities4.5
-
1,257
Current tax provision
2,800
1,620
Total current liabilities6 9,1 7 9
4 29,074
NON-CURRENT LIABILITIES
Trade and other payables3.4
13,423
13,934
Interest bearing liabilities4.5
112,168
184,500
Deferred tax liabilities5.2
3,211
36,096
Total non-current liabilities128,802
234,530
Total liabilities197,981
663,604
Net assets285,559
631,824
EQUITY
Share capital4.1
360,363
360,363
Reserves4.2
(5,198)
(34,992)
Retained earnings
(69,606)
104,584
Total Company interest285,559
429,955
Non-controlling interests-
201,869
Total equity285,559
631,824
The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.
CONSOLIDATED BALANCE SHEET
as at 31 December 2016

7
Attributable to owners of the Company
GROUP
NOTESHARE
CAPITAL
$’000
RESERVES
$’000
RETAINED
EARNINGS
$’000
TOTAL
$’000
NON-CON-
TROLLING
INTERESTS
$’000
TOTAL
EQUITY
$’000
Balance at 1 January 2015
360,363(38,616)79,511
401,258
190,736
591,994
Profit for the year--24,735
24,735
18,162
42,897
Other comprehensive
income
-3,962-
3,962
7,1 1 0
11,072
Total comprehensive
income
-3,96224,735
28,697
25,272
53,969
Transfers within equity4.2-(338)338
-
-
-
Equity transactions with
non-controlling interests
---
-
(14,139)
(14,139)
Balance at
31 December 2015
360,363(34,992)104,584
429,955
201,869
631,824
Balance at 1 January 2016
360,363(34,992)104,584
429,955
201,869
631,824
Profit for the year--60,618
60,618
13,925
74 ,5 4 3
Other comprehensive
income
-44,846-
44,846
(14,683)
30,163
Total comprehensive
income
-44,84660,618
105,464
(758)
1 04,70 5
Transfer from asset
revaluation reserve
4.2-(464)464
-
-
-
Transfer from transaction
with non-controlling
interest reserve
4.2-(14,732)14,732
-
-
-
Dividends paid4.4--(198,118)
(198,118)
-
(198,118)
Transactions with
non-controlling interests
---
-
(3,630)
(3,630)
Share based payments
expense
4.2-144-
144
-
144
Acquisitions and
divestments of subsidiaries
and operations
6--(51,886)
(51,886)
(197,481)
(249,367 )
Balance at
31 December 2016
360,363(5,198)(69,606)
285,559
-
285,559
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2016

8
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2016
NOTE
2016
$’000
2015
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
581,485
742,182
Payments to suppliers and employees
(488,558)
(609,375)
Dividends received
141
4,031
Interest received
223
277
Interest paid
(8,811)
(10,838)
Income taxes paid
(22,798)
(5,359)
Net cash inflows / (outflows) from operating activities
4.7
61,682
120,918
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
(11,549)
(27,008)
Payments for intangible assets including software
(4,407)
(9,622)
Acquisition of controlled entities, net of cash acquired6.2
-
(82,871)
Proceeds from sale of property, plant and equipment
2,251
868
Proceeds from divestment of subsidiaries, net of their cash,
as part of internal restructure
6.1.3
95,936
-
Payments for investment in other entities
(848)
-
Net loans repaid / (advanced) to other entities
2,278
480
Net cash inflows / (outflows) from investing activities83,661
(118,153)
CASH FLOWS FROM FINANCING ACTIVITIES
Loans advanced / (repaid) by related parties
(55,958)
45,752
Proceeds from borrowings
54,000
42,000
Repayments of borrowings
(127,242)
(79,222)
Payments for borrowing cost
(400)
-
Dividends paid to Company’s shareholders
(6,860)
-
Net payments to non-controlling interests
(3,630)
(16,671)
Net cash inflows / (outflows) from financing activities(140,090)
(8,141)
Net increase / (decrease) in cash and cash equivalents5,253
(5,376)
Cash and cash equivalents at beginning of the year
11,065
16,367
Effect of exchange rate changes
(76)
74
Cash and cash equivalents at end of the year
4.7
16,242
11,065
The Consolidated Statement of Cash Flows includes cashflows from continuing and discontinued operations. Refer to
Note 6.1.3 for further information on cash flows from discontinued operations. The above Consolidated Statement of
Cash Flows should be read in conjunction with the accompanying notes.

9
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.1 REPORTING ENTITY AND STATUTORY BASE
NZME Limited (NZX:NZM, ASX:NZM), formerly “Wilson
& Horton Limited”, 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 print, radio and digital media and
entertainment business.

1.2 GENERAL 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
(“IFRS”). 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 principal accounting policies adopted in the
preparation of the financial statements are either set out
below, or in the note to which it relates. These policies
have been consistently applied to all the years presented,
unless otherwise stated. These consolidated financial
statements are presented for the Group.

These consolidated financial statements were approved
for issue by the Board of Directors on 23 February 2017.

1.2.1 Basis of measurement
These 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 Comparatives
Certain prior period information has been re-presented
consistent with current year disclosures to provide more
meaningful comparison. The comparatives for the current
period have been re-presented for the effects of the
application of NZ IFRS 5
Non-current Assets Held for
Sale and Discontinued Operations
following the disposal
of the Group’s interest in the Australian Radio Network
(including Brisbane FM Radio Pty Ltd, Radio Perth
96FM Pty Limited and Emotive Pty Limited), The Level
3 Partnership and The Level 4 Partnership (“Disposed
Entities”). Refer to note 6.1 “Demerger from APN”. The
nature of the re-presentation is as follows:
• All income and expense items relating to the Disposed
Entities have been removed from the individual line
items in the income statement. The post-tax profit/
(loss) of the Disposed Entities is presented as a single
amount in the line item entitled “Profit/(loss)
from discontinued operations”; and

•  The net cash flows attributable to the operating,
investing and financing activities of the Disposed
Entities are each disclosed in the notes to the
financial statements.

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.

Transactions and balances
Foreign currency transactions are translated into the
functional currency using the exchange rates prevailing
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of
such transactions and from the translation at the year-
end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in
the income statement, except when deferred in other
comprehensive income as qualifying cash flow hedges
and qualifying net investment hedges. Non-monetary
items that are measured at fair value in a foreign currency
are translated using the exchange rates at the date when
the fair value was determined. Translation differences on
assets and liabilities carried at fair value are reported as
part of the fair value gain or loss. Non-monetary items
that are measured in terms of historical cost in a foreign
currency are translated using the exchange rate
at the date of the transaction.
1.0 BASIS OF PREPARATION

10
Group companies
The result and financial position of all the Group entities
that have a functional currency different from the
presentation currency are translated into the
presentation currency as follows:
• Assets and liabilities are translated at the closing rate
at the date of the balance sheet;
• Income and expenses are translated at average
exchange rates; and
• All resulting exchange differences are recognised
as a separate component of equity.

On consolidation, exchange differences arising from
the translation of any net investment in foreign entities,
and of borrowings and other currency instruments
designated as hedges of such investments are taken
to equity. When a foreign operation is sold or a
partial disposal occurs, a proportionate share of such
exchange differences is recognised in the income
statement as part of the gain or loss on disposal.

Goodwill and fair value adjustments arising on the
acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and translated at the
closing rate.

1.2.4 Goods and Services Tax (‘GST’)
The income statement has been prepared so that all
components are stated exclusive of GST. All items in
the balance sheet are stated net of GST, with exception
of receivables and payables, which include GST
invoiced. On the statements of cash flows receipts
from customers and payments to suppliers are shown
inclusive of GST.
1.3 SIGNIFICANT ACCOUNTING ESTIMATES
AND JUDGEMENTS
The preparation of the consolidated financial statements
requires the use of certain significant 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.
The estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying
amounts of the assets and liabilities within the next
financial year are discussed in further detail in the
notes to the consolidated financial statements to which
they relate. A list of those areas of significant estimation
or judgement and a reference to the notes containing
further information is provided below:

Areas of significant accounting
estimates or judgements NOTE
Impact of Performance Rights on earnings 2.3
per share
Determination of number of segments 2.4
Intangible assets with indefinite useful lives 3.1
Assumptions used in testing for impairment 3.1.1
of indefinite life intangible assets
Controlled entities 6.3

1.4 SIGNIFICANT CHANGES IN THE CURRENT
REPORTING PERIOD

1.4.1 Demerger from APN News & Media Limited
The Company completed its demerger from APN News
& Media Limited (“APN”) on 29 June 2016, marking the
creation of a standalone NZ Group focused on the
operation of an integrated print, radio and digital
media and entertainment business.
NZME shares were distributed to eligible APN
shareholders at a ratio of one NZME share for every
one APN share. Refer to note 6.1 and NZME NZX
announcements on 27 June 2016 and 29 June 2016 for
further details.

1.4.2 Proposed Merger with Fairfax New Zealand
Limited
As noted in the combined NZME Limited and Fairfax
Media Limited announcement dated 22 August 2016,
Fairfax New Zealand Limited (“Fairfax NZ”) and NZME
Limited received and agreed to a request from the New
Zealand Commerce Commission (“NZCC”) to extend the
date for the NZCC’s decision on the proposed merger of
the two businesses until 15 March 2017.

On 7 September 2016 NZME Limited and Fairfax NZ
announced the signing of a merger implementation
agreement to effect the merger of NZME Limited and
Fairfax NZ.

Overseas Investment Office (“OIO”) consent to the
merger was obtained on 22 September 2016.

On 8 November 2016 the NZCC issued a Draft
Determination setting out its preliminary view that,
based on the information received as at that date, it
should decline the proposed merger between NZME
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

11
and Fairfax NZ. The purpose of the Draft Determination
is to elicit further submissions and evidence to assist
the NZCC in making a Final Determination.
On 28 November 2016 NZME announced that it had
filed a joint submission with Fairfax NZ to the NZCC in
response to the issues raised in the Draft Determination.
The NZCC held a conference on 6 & 7 December 2016
to consider matters relating to the merger to assist the
NZCC in making a Final Determination on the merger.
The NZCC is due to make a Final Determination on the
proposed merger on or before 15 March 2017.

1.4.3 Taxation
On 23 June 2016, the Company and APN reached a
binding heads of agreement with the Inland Revenue
Department (“IRD”) to settle the Mandatory Convertible
Note transaction, the Branch financing transaction,
non-resident withholding tax and thin capitalisation
issues, and a further matter that was under review by
the IRD. Refer to note 5.3 for further details.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

12
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2016
$’000
2015
$’000
FROM CONTINUING OPERATIONS
Advertising revenue
295,141
314,655
Circulation and subscription revenue
86,782
93,582
Services revenue
12,206
11,826
Other revenue
1 3,72 7
10,135
Revenue from continuing operations 407,856
430,198
Dividends
141
267
Rental income from sub-leases
586
521
Profit / (loss) on disposal of properties and businesses
1,320
441
Other income2,047
1,229
Interest income – related parties
91
-
Interest income – other entities
202
315
Finance income293
315
Total finance and other income 2,340
1,544
Total revenue and other income 410,196
431,742
FROM DISCONTINUED OPERATIONS (REFER TO NOTE 6.1.1)
Total revenue and other income127,542
252,019
2.1 REVENUE AND OTHER INCOME
Accounting policies
Revenue is measured at the fair value of consideration received or receivable. Amounts disclosed as revenue are
net of returns, rebates and taxes paid.
The Group recognises revenue when:
· the amount of revenue can be reliably measured;
· it is probable that the economic benefits will flow to the Group; and
· the criteria for revenue recognition has been satisfied.
Advertising revenue is recognised when the advertisement is published or broadcast, when the coupon is sold,
or over the period the advertisement is displayed.
Circulation and subscription revenue is recognised when the publication is purchased or on a straight-line basis
over the subscription period.

Services revenue is recognised by reference to the stage of completion of the transaction, when it can be
measured reliably. Services revenue includes printing and production and revenue generated by the shared
services centre.

Other revenue includes revenue from events, recycling of waste, distribution charges and digital design
and is recognised when the event occurs, the product is delivered or the goods are sold.

2.0 GROUP PERFORMANCE

13
2016
$’000
2015
$’000
FROM CONTINUING OPERATIONS
Employee benefits expense
161,610
164,621
Production and distribution expense
82,301
99,394
Selling and marketing expense
45,840
50,220
Rental and occupancy expense
2 3,7 11
23,785
Masthead license fees
12,216
22,853
Costs in relation to one-off projects
6,946
5,312
Redundancies and associated costs
6,009
7,1 78
Asset write-downs and business closures
-
3,028
Repairs and maintenance costs
6 ,1 6 6
5,771
Travel and entertainment costs
4,086
3,892
Other
14,668
14,672
Total expenses from operations before finance costs,
depreciation, amortisation
363,553
400,726
2.2 EXPENSES
2.2.1 Expenses from operations before finance costs, depreciation, amortisation
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2016
$’000
2015
$’000
2.2.2 Depreciation & amortisation
FROM CONTINUING OPERATIONS
Depreciation
16,173
14,023
Amortisation
7,6 7 2
9,660
Total depreciation & amortisation23,845
23,683
2.2.3 Finance cost
FROM CONTINUING OPERATIONS
Interest and finance charges – related parties
2 ,76 5
6,305
Interest and finance charges – other entities
6,482
12,503
Borrowing cost amortisation
53
-
Total finance cost9,300
18,808

14
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2016
$’000
2015
$’000
2.2.4 Fees paid to auditors
Fees paid to the Group’s auditors, PricewaterhouseCoopers, consist of:
Audit or review of financial statements
A
454
379
Other services
Other assurance services
B
6
64
Tax services
C
1,057
750
Other services
D
1,231
93
Total other services2,294
907
Total fees paid to auditors2 ,74 8
1,286
(A) Includes the fee for both the audit of the annual financial statements and the independent review of the interim financial statements. (B) Includes
regulatory and other assurance services, including New Zealand circulations. (C) Includes services relating to transactional advice, tax compliance
services, tax pooling services and services relating to the IRD settlement (refer to note 5.3). (D) Includes due diligence and advisory services relating
to the proposed merger with Fairfax New Zealand Limited of $1,224,179 in 2016 and other advisory services.

15
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2.3 EARNINGS PER SHARE
(A) Due to the share consolidation in the current period (refer to note 4.1), the number of ordinary shares outstanding during the year ended
31 December 2015 was retrospectively adjusted.

2016
$’000
2015
$’000
RECONCILIATION OF EARNINGS USED IN CALCULATING BASIC / DILUTED
EARNINGS PER SHARE (“EPS”)
Profit / (Loss) from continuing operations attributable to owners of the parent entity
(54,884)
(12,913)
Profit from discontinuing operations attributable to owners of the parent entity
115,502
37,6 4 8
Profit / (Loss) attributable to owners of the parent entity used in calculating EPS60,618
24,735
2016
NUMBER
2015
NUMBER
WEIGHTED AVERAGE NUMBER OF SHARES
Weighted average number of shares in the denominator in calculating basic EPS
A
196,011,282
196,011,282
Adjusted for calculation of diluted EPS
-
-
Weighted average number of shares in the denominator in calculating diluted EPS 196,011,282
196,011,282
2016
CENTS
2015
CENTS
BASIC / DILUTED EARNINGS PER SHARE
From continuing operations attributable to owners of the parent entity
(28.0)
(6.6)
From discontinuing operations attributable to owners of the parent entity
58.9
19.2
Total basic / diluted earnings per share attributable to owners of the parent entity30.9
12.6
Significant Judgement
Under the Group’s Total Incentive Plan (“TIP”) as discussed in Note 4.3, Performance Rights were issued to certain
participating employees that will convert into fully paid ordinary shares. Under the TIP, the Company would either
repurchase those shares from the market or issue new shares. Any new shares issued would have a dilutive effect
on the Earnings Per Share calculations noted below. It is currently the intention of the Company to repurchase
shares from the market and not to issue new shares.

16
Significant Judgement
The Group has one reportable segment – being “Integrated Media and Entertainment”. All significant operating
decisions are based upon analysis of NZME as one operating segment. 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 by channel only at the revenue level into Print, Radio & Experiential and Digital & e-Commerce which
is the way in which revenue is reported to the Chief Operating Decision Maker. Although the Group operates
in many different markets within New Zealand, for management reporting purposes the Group operates in one
principle geographical area being New Zealand as a whole.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2.4 SEGMENT INFORMATION
2.4.1 Determination and description of segments
Following the demerger and internal restructure which resulted in the Company being listed as a separate standalone
entity, the segmental reporting was revised to align to the format that is used to report to the Chief Operating Decision
Maker. The corresponding information for 2015 has been re-presented.
Accounting policies
Basic earnings per share (from continuing operations)
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 (from continuing operations)
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.
(Note that there are no dilutive potential ordinary shares in 2016 (2015: nil)).
Basic / dilutive earnings per share (from discontinued operations)
Basic / dilutive earnings per share (from discontinued operations) are calculated on the same basis as the
policies described above, except that net profit or loss attributable to the owners of the Company is replaced
with profit or loss from discontinued operations attributable to the owners of the Company.
Integrated Media and Entertainment incorporates the sale of advertising, goods and services generated from the
audiences attached to the Group’s media platforms. Discontinued operations have been presented in Note 6.1.

17
2.4.2 Segment revenues and results
The segment information provided to the Directors and Executive Team for the year ended 31 December 2016
is as follows:
2016
$’000
2015
$’000
REVENUES FROM EXTERNAL CUSTOMERS BY CHANNEL
Print
239,127
262,006
Radio & Experiential
114,849
120,173
Digital & e-Commerce
52,153
48,019
Total revenues from external customers excluding revenue
from shared service centre
406,129
430,198
Dividend income
141
267
Rental income from sub-leases
586
521
Expenses from operations before finance costs, depreciation,
amortisation and exceptional items
(338,382)
(362,355)
Total Segment Adjusted EBITDA
A
68,474
68,631
Revenue from shared services centre
1,72 7
-
Depreciation and amortisation
(23,845)
(23,683)
Interest income
293
315
Finance cost
(9,300)
(18,808)
EXCEPTIONAL ITEMS
Gain on disposal of properties and businesses
B
1,320
441
Masthead royalty charges
C
(12,216)
(22,853)
Redundancies and associated costs
D
(6,009)
( 7,1 78 )
Costs in relation to one off projects
E
(6,946)
(5,312)
Asset write downs
F
-
(3,028)
Profit / (Loss) before tax from continuing operations13,498
(11,475)
(A) Adjusted Earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) from continuing operations and before exceptional items,
is a non-GAAP measure that represents the Group’s total segment result and is regularly monitored by the Chief Operating Decision Maker. (B) Gains on
disposal of properties is the gain on sale of the Wairarapa Times Age, Whakatane News offset by loss on sale of property in Nelson in 2016, and the gain
on sale of a property in Invercargill, New Zealand in 2015. (C) Costs charged from a subsidiary company of APN for use of NZ publishing mastheads. On
24 June 2016, the Group acquired certain NZ publishing mastheads on normal commercial terms from this subsidiary company of APN (refer to note
3.1). As a result, masthead royalty charges have not been incurred by the Group from 24 June 2016 onwards. (D) The redundancies and associated costs
relate to the restructuring and integration of the New Zealand operations. (E) The costs related to one off projects refers primarily to costs of external
consultants assisting with the listing, integration and co-location of NZME and the proposed merger with Fairfax New Zealand. (F) The asset write downs
includes a write off of leasehold improvements in the Group as a result of the office co-location.

As the Group has one operating segment, the assets and liabilities as reported on the consolidated balance sheet are
also the segment assets and liabilities, and the income tax expense in the consolidated income statement is also the
segment income tax.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

18
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.1 INTANGIBLE ASSETS
GOODWILL
$’000
SOFTWARE
$’000
MASTHEAD
BRANDS
$’000
RADIO
LICENCES
$’000
BRANDS
$’000
TOTAL
$’000
AT 1 JANUARY 2015
Cost165,84837,14 015,830401,44759,079
679,344
Accumulated amortisation
and impairment
(95,614)(28,609)(15,830)(30,245)-
(170,298)
Net book value
70,2348,531-371,20259,079
509,046
FOR THE YEAR ENDED 31 DECEMBER 2015
Opening net book amount70,2348,531-371,20259,079
509,046
Additions-9,622---
9,622
Disposals-(189)---
(189)
Acquisition of controlled entities11,237--72,408-
83,645
Amortisation-(6,707)-(3,889)-
(10,596)
Foreign exchange differences(79)14-5,637-
5,572
Net book value
81,39211,271-445,35859,079
597,100
AS AT 31 DECEMBER 2015
Cost177,00646,587-479,49259,079
762,164
Accumulated amortisation
and impairment
(95,614)(35,316)-(34,134)-
(165,064)
Net book value
81,39211,271-445,35859,079
597,100
Significant Judgement
The Directors have determined that Masthead Brands and Brands have indefinite lives and are therefore not
amortised. Refer to the accounting policies below for further information.
3.0 OPERATING ASSETS & LIABILITIES

19
(A) Prior to the implementation of the demerger, the Group acquired certain NZ publishing Masthead Brands on normal commercial terms from a
subsidiary company of APN News & Media Limited (“APN”). These Masthead Brands were purchased for consideration of $146,976,000 together with
a termination amount in regard to the masthead license of $2,065,575, which was incurred as the Group early terminated the masthead licences
agreement with APN. (B) The Company completed its demerger from APN on 29 June 2016. Refer to Note 6.1 for further details around assets
disposed and acquired as part of the Internal Restructure.
Accounting policies
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net
identifiable assets of the acquired business at the date of the acquisition. Goodwill is not amortised but rather is
subject to periodic impairment testing.
Software
Costs incurred in developing systems, acquiring software and licences are capitalised to software. Costs
capitalised include materials, services, payroll and payroll related costs of employees involved in development.
Amortisation is calculated on a straight line basis over the useful life of the asset (typically 3 to 10 years).
Radio licences
Commercial radio licences are accounted for as identifiable assets and are brought to account at cost. The
current New Zealand radio licences have been renewed to 31 March 2031 and are being amortised on a straight
line basis to that date.
Masthead Brands
Masthead Brands, being the titles, logo’s and similar items of the integrated media assets of the Group are
accounted for as identifiable assets and are brought to account at cost. The Directors believe the mastheads
have indefinite lives as there is no foreseeable limit over which the mastheads are expected to generate net
cash inflows for the Group. Accordingly, Masthead Brands are not amortised but are tested for impairment each
year (refer to note 3.1.1 below).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
GOODWILL
$’000
SOFTWARE
$’000
MASTHEAD
BRANDS
$’000
RADIO
LICENCES
$’000
BRANDS
$’000
TOTAL
$’000
FOR THE YEAR ENDED 31 DECEMBER 2016
Opening net book amount81,39211,271-445,35859,079
597,100
Additions
A
-4,286146,976--
151,262
Disposals-----
-
Divestment of subsidiaries
and operations
B
(10,804)--(390,454)-
(401,258)
Acquisition of controlled entities-----
-
Amortisation-(4,721)-(3,422)-
(8,143)
Foreign exchange differences19534-(9,414)-
(9,185)
Net book value
70,78310,870146,97642,06859,079
329,776
AS AT 31 DECEMBER 2016
Cost166,39749,309146,9767 7,4 5759,079
499,218
Accumulated amortisation
and impairment
(95,614)(38,439)-(35,389)-
(169,442)
Net book value
70,78310,870146,97642,06859,079
329,776

20
Significant Judgement
As disclosed in note 2.4 the Directors have determined that, following the demerger and internal restructure,
the Group has one reportable segment – being “Integrated Media and Entertainment”. The Directors have also
determined that this is the only cash generating unit (“CGU”) for impairment testing because this is 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. Accordingly all goodwill and intangibles with indefinite useful lives are
allocated to one CGU. This note also includes details of certain key estimates and assumptions made during the
impairment testing calculations.
Key estimates and assumptions
Year 1 cash flows:
Based on Board approved annual budget.

Years 2 to 5 cash flows
Revenue forecasts are prepared based on management’s current expectations, with consideration given to
internal information and relevant external industry data and analysis. In particular:
· Print revenues are forecast to decline in line with recent experience and industry trends.
· Digital revenues are forecast to grow based on recent experience and industry trends.
· Radio and experiential revenues are forecast to grow based on management expectations of
performance as a result of investment in key initiatives.

Expenses are forecast based on management expectations, with consideration given to internal information
and relevant external data.
A comprehensive impairment review was conducted at 31 December 2016. The recoverable amount of the CGU
(which includes goodwill and indefinite life intangible assets) is determined based on the higher of fair value less costs
to sell and value in use calculations using management budgets and forecasts. The recoverable amount of the CGU
is compared against the carrying value of the CGU to determine whether there has been an impairment.
(A) Prior to the Demerger from APN, the Group undertook impairment testing for four CGU’s. The post-tax discount rate used in those calculations ranged
from 10% to 10.5%. (B) Prior to the Demerger from APN, the Group undertook impairment testing for four CGU’s. The long-term growth rate used in those
calculations ranged from 0% to 2.5%.
2016
Post-tax
discount rate
2016
Long-term
growth rate
2015
Post-tax
discount rate
2015
Long-term
growth rate
Integrated Media and Entertainment CGU
9.5%0%
AB
3.1.1 Year-end impairment review
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Accounting policies (continued)
Brands
Brands are accounted for as identifiable assets and are brought to account at cost. The Directors have
considered the geographic location, legal, technical and other commercial factors likely to impact the assets’
useful lives and consider that they have indefinite lives. Accordingly, Brands are not amortised but are tested for
impairment each year (refer to note 3.1.1 below).

21
3.1.2 Impact of reasonably possible change
in key assumptions
The forecasts are sensitive to certain key assumptions,
particularly forecast print and digital revenues. If the
ratio of the growth in digital revenue as compared to the
decline in print revenue reduced by 8% over the period
of forecast, and no other mitigation activities were
taken into account, then the recoverable amount would
be equal to the carrying amount of the CGU and any
further fall in this ratio would result in impairment.
Based on all available information the Directors do
not consider this to be a reasonably possible scenario.
Accordingly, based on the assessment performed,
there is no impairment.
Accounting policies
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment and whenever there is an indication that they may be impaired. Intangible assets that
are subject to amortisation are tested for impairment whenever events or changes in circumstances indicate
that the 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. 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). Currently, the
group has only one CGU, being Integrated Media and Entertainment. Non-financial intangible assets, other than
goodwill, that suffer impairment are reviewed for possible reversal of the impairment at each reporting date.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

22
FREEHOLD
LAND
B
$’000
BUILDINGS
B
$’000
PLANT AND
EQUIPMENT
C
$’000
TOTAL
$’000
AT 1 JANUARY 2015
Cost or fair value3,1051,514398,812
403,431
Accumulated depreciation and impairment-(357)(311,571)
(311,928)
Net book amount
3,1051,15787, 24 1
91,503
YEAR ENDED 31 DECEMBER 2015
Opening net book amount3,1051,15787, 24 1
91,503
Additions-3127,3 9 9
27,430
Acquisitions of controlled entity--426
426
Disposals(341)(771)(2,365)
(3,477)
Depreciation-(290)(17,308)
(17,598)
Revaluations224375-
599
Foreign exchange differences2(22)353
333
Net book amount
2,9904809 5,746
99,216
AS AT 31 DECEMBER 2015
Cost or fair value2,990480404,483
407,953
Accumulated depreciation and impairment--(308,737)
(308,737)
Net book amount
2,9904809 5,746
99,216
YEAR ENDED 31 DECEMBER 2016
Opening net book amount2,9904809 5,746
99,216
Additions-1,57610,160
11,73 6
Disposals(752)(98)(172)
(1,022)
Divestment of subsidiaries and operations
A
(1,133)(714)(14,928)
(16,775)
Depreciation-(2,217)(15,832)
(18,049)
Transfers and other adjustments
C
30213,335(12,701)
936
Foreign exchange differences(26)(17)(322)
(365)
Net book amount
1,38112,34561,951
75,677
AS AT 31 DECEMBER 2016
Cost or fair value1,38114,562386,520
402,463
Accumulated depreciation and impairment-(2,217)(324,569)
(326,786)
Net book amount
1,38112,34561,951
75,677
3.2 PROPERTY, PLANT AND EQUIPMENT
(Footnotes on the next page)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

23
Accounting policies
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:
Furniture and fittings 3 to 25 years
Buildings 10 to 25
Leasehold improvements 3 to 25 years
Motor vehicles 5 to 10 years
Plant & equipment 3 to 25 years
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at each balance sheet
date. Gains and losses on disposals are determined by comparing proceeds with carrying amount and are
included in the income statement.
Land and buildings are shown at fair value, based on periodic valuations (at least every 3 years) by external
independent valuers, less subsequent depreciation for buildings. 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.
Plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that
is directly attributable to the acquisition of the items. Subsequent costs are included in the assets carrying
amount or recognised as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Group and the cost of the item can be reliably measured.
All other repairs and maintenance are charged to the income statement during the financial period in which
they are incurred.
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 reporting date.
(A) The Company completed its demerger from APN News & Media Limited (APN) on 29 June 2016. Refer to Note 6.1 for further details around assets
disposed and acquired as part of the Internal Restructure. (B) Freehold land and buildings are held at fair value based on independent valuations. If land
and buildings were stated on the historical cost basis, the net book value of land would have been $658,270 (2015: $939,270) and the net book value of
buildings would have been $688,435 (2015: $1,039,690). The last revaluation was performed for the year ended 31 December 2015. (C) Included in plant
and equipment is capitalised work in progress with a net book value of $7,285,650 (2015: $25,460,875) which is transferred to the relevant asset category
(including software) once the project is complete. Transfers and other adjustments primarily comprise of transfers from work in progress during the year.
All transfers from work in progress in 2015 related to plant and equipment and are therefore reflected in the plant and equipment additions.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

24
3.3 TRADE AND OTHER RECEIVABLES
2016
$’000
2015
$’000
Trade receivables
45,043
96,382
Provision for impairment
(1,042)
(2,146)
44,001
94,236
Amounts due from related companies (note 7.1.2)
750
304,931
Other receivables and prepayments
8,880
10,703
Total current trade and other receivables53,631
409,870
Movements in the provision for impairment are as follows:
Balance at beginning of the year
2,146
1,805
Provision for impairment expense
596
1,356
Receivables written off
(1,700)
(1,015)
Provision for impairment1,042
2,146
3.3.1 Classification
Trade receivables are amounts due from customers for
goods sold or services performed in the ordinary course
of business. Receivables and other financial assets are
classified as 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. Loans to related
parties are unsecured, interest bearing and repayable at
call. If collection of the amounts is expected in one year
or less they are classified as current assets.
3.3.2 Fair values of trade and other receivables
Due to the short-term nature of the current receivables,
their carrying amount is considered to be the same as
their fair value.
3.3.3 Impairment and risk exposure
The maximum exposure to credit risk at the reporting
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 4.8.3 for credit risk and note
4.9 for fair value information.
Accounting policies
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 company 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 against other income in the income statement.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

25
3.4 TRADE AND OTHER PAYABLES
2016
$’000
2015
$’000
CURRENT PAYABLES
Lease liability
833
833
Amounts due to related companies (note 7.1.2)
2,654
322,304
Employee entitlements
7,1 0 4
11,302
Trade payables and accruals
55,788
91,758
Total current trade and other payables66,379
426,197
NON-CURRENT PAYABLE
Lease liability
13,423
12,859
Employee entitlements
-
1,075
Total non-current trade and other payables13,423
13,934
Refer to note 4.8 for information regarding risk exposure, note 4.9 for further fair value considerations and note
4.6 for lease commitments.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

26
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.
Leases
Finance leases are leases of property, plant and equipment where the Group, as lessee, has substantially all
the risk and rewards of ownership. Finance leases are capitalised at the lease’s inception at the lower of the fair
value of the leased property and the present value of the minimum lease payments. A corresponding liability
is also established and each lease payment is allocated between the liability and finance charges. The interest
element is charged to the income statement over the period of the lease. Leased assets are amortised on a
straight line basis over the term of the lease, or where it is likely that the Group will obtain ownership of the
asset, the life of the asset. Leased assets held at balance date are amortised over the shorter of the estimated
useful life or the lease term. The Group does not currently have any material finance leases.
Operating leases are other leases under which all the risks and benefits of ownership are effectively retained by
the lessor. Operating lease payments, excluding contingent payments are charged to the income statement
on a straight line basis over the period of the lease, net of lease incentives, which are classified as payables and
amortised over the life of the associated lease.
Lease incentives are presented as part of the lease liabilities and are recognised in the income statement on a
straight line basis over the lease term.
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 reporting date are recognised in payables and accruals in respect of
employees’ services up to the reporting 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 reporting 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.

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, note 7.1.1 for key management
compensations and note 6.1 for further information on the demerger.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

27
3.5 NET TANGIBLE ASSETS
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:
2016
$’000
2015
$’000
AS AT 31 DECEMBER
Total assets
483,540
1,295,428
Less intangible assets
(329,776)
(597,100)
Less total liabilities
(197,981)
(663,604)
Net tangible assets(44,217)
34,724
Number of shares issued (in thousands)
A
196,011
196,011
Net tangible assets per share($0.23)
$0.18
(A) Due to the share consolidation in the current period (refer to note 4.1), the number of ordinary shares outstanding during the year ended
31 December 2015 was retrospectively adjusted to enhance comparability. Had the shares outstanding as at 31 December 2015 of 378,550,000
been used, the net tangible assets per share as at 31 December 2015 would be $0.09.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

28
Accounting policies
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.
4.1 SHARE CAPITAL
4.2 RESERVES
AUTHORISED, ISSUED
AND PAID UP SHARE CAPITAL
2016
NUMBER
2015
NUMBER
2016
$’000
2015
$’000
Balance at the beginning of the period
378,550
378,550
360,363
360,363
Shares consolidated as part of the demerger
A
(182,539)
-
-
-
Balance at the end of the period196,011
378,550
360,363
360,363
(A) On demerger, NZME shares were distributed to eligible APN shareholders at a ratio of one NZME share for every one APN share. Also refer to note
6.1 for further details on the demerger.
2016
$’000
2015
$’000
SHARE BASED PAYMENTS RESERVE
Balance at the beginning of the year
-
-
Share based payment expense
144
-
Balance at end of the year144
-
ASSET REVALUATION RESERVE
Balance at beginning of the year
1,186
1,185
Revaluation of freehold land and buildings
-
356
Transfer to foreign currency translation reserve
-
(17)
Transfer to retained earnings due to asset disposals and discontinued operations
(464)
(338)
Balance at end of year722
1,186
FOREIGN CURRENCY TRANSLATION RESERVE
Balance at beginning of the year
(44,537)
(48,160)
Foreign exchange transfers
44,844
17
Net exchange difference on translation of foreign operations
2
3,606
Total movement for the year
44,846
3,623
Balance at end of year309
(44,537)
TRANSACTIONS WITH NON-CONTROLLING INTERESTS RESERVE
Balance at beginning of the year
8,359
8,359
Transfer to retained profit relating to discontinued operations
(14,732)
-
Balance at end of year(6,373)
8,359
Total reserves(5,198)
(34,992)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
4.0 CAPITAL MANAGEMENT

29
4.3 SHARE BASED PAYMENTS
20162015
AVERAGE PRICE
PER RIGHT
(CENTS)
NUMBER OF
RIGHTS
AVERAGE PRICE
PER RIGHT
(CENTS)
NUMBER OF
RIGHTS
As at 1 January
- -
- -
Granted
0.58 745,301
- -
Forfeited
- -
- -
Exercised
- -
As at 31 December 0.58 745,301
- -
Share rights outstanding at the end of the year have the following expiry date and fair value at grant date:
PERFORMANCE RIGHTS
GRANT DATEVESTING DATEVALUE OF RIGHT
AT GRANT DATE
(CENTS)
2016
$’000
“2015
$’000”
20 December 201631 Dec 2017 0.58
432
-
As at 31 December432
-
Share based payment expense recognised
in the current period (refer to note 4.2)
144
-
2016
2015
Weighted average remaining contractual life of rights outstanding at
the end of the period
12 months
none
4.2.1 Nature and purpose of reserves
Share based payments reserve
The share based payments reserve is used to
recognise the fair value of the performance rights
issued but not yet vested as described in note 4.3.

Asset revaluation reserve
The asset revaluation reserve is used to record
increments and decrements on the revaluation of non-
current assets, as described in note 3.2. The balance
standing to the credit of the reserve may be used to
satisfy the distribution of bonus shares to shareholders
and is only available for the payment of cash dividends
in limited circumstances as permitted by law. In the
event of the sale of an asset, the revaluation surplus is
transferred to retained earnings.

Foreign currency translation reserve
Exchange differences arising on translation of any
foreign controlled entities are taken to the foreign
currency translation reserve, as described in the basis
of preparation.

Transactions with non-controlling
interests reserve
This reserve is used to record the differences
described in note 6.4.1 of the basis of preparation
which may arise as a result of transactions with
non-controlling interests that do not result
in a loss of control.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

30
4.3.1 Background
Long-term incentive plans - performance rights
(pre-Demerger)
Share-based compensation benefits were provided
to employees by APN News & Media Limited (“APN”)
prior to the demerger via a Long-term Incentive (“LTI”)
plan. The fair value of rights granted under the LTI plan
is recognised as an employee benefit expense with a
corresponding increase in equity of APN prior to the
demerger. The fair value is measured at grant date and
recognised over the period during which the employee
becomes unconditionally entitled to the rights.

Total incentive plan (“TIP”) (post-Demerger)
As described in the Explanatory Memorandum for the
Demerger of NZME by APN, the Group has now adopted
an executive incentive structure similar to that used by
APN. The TIP is designed to align the reward outcomes
with the shareholders’ interest and to support the
achievement of the Group’s business strategy and was
approved by the Board on 20 December 2016. Under
the TIP, and at the absolute discretion of the Board, the
CEO and other executive key management personnel
are eligible to participate in the TIP. Eligible participants
have a target award opportunity, which varies between
50% and 100% of fixed remuneration, depending on
the participant’s role and responsibilities. A new TIP
opportunity will be offered at the commencement
of each financial year. The award is dependent on
performance over a one year period (“performance
period”) and there is no opportunity for retesting.
Performance is formally evaluated on the date that
the full year financial performance is announced
to the market.

Performance measures
• Financial performance conditions (75%): Performance
will be measured against earnings before interest, tax,
depreciation and amortisation (“EBITDA”). This portion
is determined based on actual EBITDA against
budgeted EBITDA on the following scale:

% of EBITDA % of target
opportunity awarded
•    < 95% 0%
•    > 95% to 100% Pro-rata vesting between
25% and 100%
•    > 100% to 110% Pro-rata vesting between
100% and 150%

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
• Non-financial performance conditions (25%):
Performance will be measured against specific
measures, as determined for each participant at
the commencement of the performance period.

Awards under the TIP are granted to participants
following the assessment of performance. To the
extent the performance measures are met:
• 50% of awards are made in cash; and
• 50% of awards are granted in rights to acquire
fully paid ordinary shares in the Company for $nil
consideration (“Rights”).
The performance period for the 2016 awards is a 6
month period which commenced on 1 July 2016. Going
forward, the performance period will be a 12 month
period commencing at the start of the financial year.
Subject to remaining employed by the Company for
a further one year period following the performance
period (“service period”), rights will vest and will be
kept in trust for a further two years (“deferral period”).
Vested rights will automatically convert into ordinary
shares for $nil consideration at the end of the deferral
period without the requirement for the participant
to exercise their Rights. Participants will receive an
additional allocation of shares at vesting equal to the
dividends paid on vested Rights over the Service Period.
The Company may reduce unvested equity awards
in certain circumstances such as gross misconduct,
material misstatement or fraud. The Board may also
reduce unvested awards to recover amounts where
performance that led to payments being awarded is
later determined to have been incorrectly measured
or not sustained. Awards are normally forfeited if the
participant leaves before the end of the performance
period, except in limited circumstances that are
approved by the Board on a case-by-case basis. If a
participant leaves during the service period, the rights
that will vest will be determined on a pro-rata basis
based on when they leave during the service period. If
a participant leaves during the deferral period, no rights
will be forfeited, but rights will still only convert into
ordinary shares at the end of the deferral period.
The fair value of the rights at grant date was estimated
based on the NZME share price as at 20 December
2016, being the date after the Board approved the
TIP and the terms were communicated to the eligible
participants. The number of rights awarded are based
on the Volume Weighted Average Price (“VWAP”) of the
Company’s shares.

31
Accounting policies
Long-term incentive plans - performance rights (pre-Demerger)
The fair value at grant date is determined using a combination of the Binomial option pricing model and the
Monte-Carlo option pricing model which take into account the exercise price, the term of the right, the vesting
and performance criteria, the impact of dilution, the non-tradeable nature of the right, the share price at grant
date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest
rate for the term of the right.
The fair value of the rights granted is adjusted to reflect the market vesting condition, but excludes the impact
of any non-market vesting conditions. Non-market vesting conditions are included in assumptions about the
number of rights that are expected to become exercisable. At each reporting date, its estimate of the number
of rights that are expected to become exercisable are revised. The employee benefit 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.
Total incentive plan (TIP) (post-Demerger)
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 service period and the deferral 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.
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 reporting date, the Group revises its estimate of the number of rights that are expected to
become exercisable.
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
4.3.2 Model inputs
The following is a summary of the key inputs in calculating the share-based payment expense under the 2016 for the year:
• Performance Period 1 July 2016 to 31 December 2016
• Service Period 1 January 2017 to 31 December 2017
• Vesting Period (being the Performance Period and the 1 July 2016 to 31 December 2017
Service Period)
• Deferral Period 1 January 2018 to 31 December 2019
• Share price at grant date 58 cents
• VWAP 70 cents
• It is assumed that all participating employees will remain employed with the Company until the end of the Vesting Period.

32
4.4 DIVIDENDS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
4.5 INTEREST BEARING LIABILITIES
2016
$’000
2015
$’000
Current interest bearing liabilities
Bank loans – secured
-
1,257
Total current interest bearing liabilities-
1,257
Non-current interest bearing liabilities
Bank loans – secured
112,486
184,500
112,486
184,500
Deduct:
Capitalised borrowing costs
(318)
-
Total non-current interest bearing liabilities112,168
184,500
NET DEBT
Current interest bearing liabilities
-
1,257
Non-current interest bearing liabilities
112,486
184,500
Capitalised borrowing costs
(318)
-
Cash and cash equivalents
(16,242)
(11,065)
Total debt less cash and cash equivalents95,926
174,69 2
4.4.3 Franking and imputation credits
2016
‘000
2015
‘000
Imputation credits available for subsequent reporting periods
based on the New Zealand 28% tax rate for the Group
NZ$ 4,739NZ$2,709
Franking credits available to the Company for subsequent
reporting periods based on the Australia 30% tax rate for the Group
AU$ 0
A
AU$ 0
A
(A) Although the Company does not have any franking credits available for use, other entities within the Group has AU$10,828,676 (2015:AU$10,824,821)
available that might become available to the Company in future periods.
4.4.1 Dividends paid
On 24 June 2016, the Company declared and settled a
dividend of $191,257,897 to APN International Pty Limited.
This occurred as part of the Internal Restructure. Refer to
Note 6.1 for further details. On 25 August 2016, the Board
declared an interim dividend of 3.5 cents per fully paid
ordinary share. This was paid on 28 October 2016. No
dividends were declared or paid in 2015.
4.4.2 Dividends declared after balance date
On 23 February 2016, the Board of Directors declared
a fully imputed final dividend of 6 cents per share, to
be paid on 28 April 2017 to registered shareholders as
at 11 April 2017. The Board of Directors also declared
a supplementary dividend of 1.06 cents per share, to
be paid on 28 April 2017 to registered shareholders
as at 11 April 2017, to those shareholders who are
not tax residents in New Zealand. The payment of a
supplementary dividend effectively puts non-resident
shareholders in the position they would have been
had they received imputation credits (which are only
available to resident shareholders).

33
Prior to the Demerger, NZME was funded by a combination
of internal cash flows and external financing arrangements.
Following the Demerger, funding is from a combination
of its own cash reserves and NZ$160 million bilateral bank
loan facility, which NZME entered into on 29 June 2016,
of which $112 million is drawn and $48 million is undrawn
as at 31 December 2016. The facility expires on
1 January 2020.
The interest rate for the drawn facility is the applicable
bank screen rate plus credit margin.
The NZME Bilateral Facilities contain undertakings which
are customary for a facility 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 30 June and 31 December. The Group has
complied with these covenants.

Capitalised borrowing costs related to the refinancing
were $0.3 million.
Consideration received on the sale of the Partnership
Interests (refer to note 6.1.1) to APN prior to Demerger,
was used to pay down secured bank loans. This is the
main reason for the decrease in interest bearing liabilities
from 31 December 2015.
Accounting policies
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.

2016
$’000
2015
$’000
Commitments for minimum lease payments in relation to rental
commitments contracted for at the reporting date and not
recognised as liabilities, payable:
Not later than one year
16,406
18,390
Later than one year but not later than five years
52,307
49,976
Later than five years
71,856
80,692
Commitments not recognised in the financial statements140,569
149,058
4.6 COMMITMENTS
The group leases certain premises under operating leases. The leases have varying terms, escalation
clauses and renewal rights. Excess space is sub-let to third parties under non-cancellable operating leases.
4.6.1 Lease commitments
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

34
2016
$’000
2015
$’000
RECONCILIATION OF CASH
Cash at end of the year, as shown in the statements of cash flows,
comprises:
Cash and cash equivalents16,242
11,065
RECONCILIATION OF NET CASH INFLOWS (OUTFLOWS) FROM
OPERATING ACTIVITIES TO PROFIT / (LOSS) FOR THE YEAR:
Profit / (loss) for the year
74 ,5 4 3
42,897
Depreciation and amortisation expense
26,193
28,194
Borrowing cost amortisation
53
-
Net gain on sale of non-current assets
9
(492)
Gain on sale of business after tax
(192,519)
-
Reclassification of foreign currency translation reserve
65,326
-
Change in current / deferred tax payable
41,289
(3,969)
Current tax funded through related party balances
(12,842)
24,870
Foreign exchange losses / (gains)
1,086
(763)
Asset write offs and business closure
15
597
Revaluation/impairment of financial assets
(2,245)
( 7,0 67 )
Change in fair value of financial instrument
31,481
12,623
Share based payment expense
144
-
Changes in assets and liabilities net of effect of acquisitions:
Trade and other receivables
51,104
(8,572)
Inventories
730
(634)
Prepayments
(306)
758
Trade and other payables and employee benefits
(22,379)
32,476
Net cash inflows/(outflows) from operating activities61,682
120,918
4.7 CASH FLOW INFORMATION
Accounting policies
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

35
4.8 FINANCIAL RISK MANAGEMENT
4.8.1 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 capital requirements.
The Group’s activities expose it to a variety of financial
risks: market risk (including foreign exchange risk,
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 foreign exchange
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 CFO to cover specific areas,
such as foreign exchange risk, interest rate risk, credit
risk, use of derivative financial instruments and non-
derivative financial instruments, and investment of
excess liquidity.

4.8.2 Market risk
(a) 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. The Group makes decisions re-
garding variable or fixed rate debt as and when debt
contracts are entered into. Current interest bearing debt
are fixed for 30 days on a rolling basis.
Based on the outstanding net floating debt at 31
December 2016, a change in interest rates of +/-1% per
annum with all other variables being constant would
impact post-tax profit and equity by $1.1 million lower/
higher (2014: $1.5 million lower/higher).

(b) Foreign exchange risk
Foreign exchange risk arises from future commercial
transactions and recognised assets and liabilities that
are denominated in a currency that is not the entity’s
functional currency. Individual transactions are assessed
and forward exchange contracts are used to hedge the
risk where deemed appropriate.
Whilst the Group as a whole (pre-Demerger) had assets
and liabilities in multiple currencies, individual entities in
the Group did not have a significant foreign exchange
exposure to receivables or payables in currencies
that are not their functional currency. Post-Demerger,
the Group’s operations in foreign jurisdictions have
significantly reduced to the extent that the Group does
not have a significant foreign exchange exposure.

(c) 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 as other
financial assets are categorised as level 3 in the fair value
hierarchy and have been impaired, where applicable, to
the present value of expected future cash flows.
4.8.3 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, risk control 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

36
The table below sets out additional information about the credit quality of trade receivables net of the provision for
doubtful debts:
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
2016
Expected loss rate0.0%0.7%6.5%47.8%62.0%
Trade Receivables23,8901 7,1 862,616619732
45,043
Impaired receivables(121)(171)(296)(454)
(1,042)
23,89017,0652,445323278
44,001
2015
Expected loss rate0.1%1.4%7.0 %65.3%21.8%
Trade Receivables63,06724,1315,7081,3972,079
96,382
Impaired receivables(35)(345)(401)(912)(453)
(2,146)
63,03223,7865,3074851,626
94,236
Trade receivables are generally settled within 30 to
45 days. The Directors consider the carrying amount
of trade receivables approximates their net fair value.
Receivables are monitored on an individual basis and
the company considers the probability of default upon
initial recognition of the receivable and throughout the
period and provides for receivables considered
to be impaired.
As of 31 December 2016, trade receivables of
$3,046,000 (2015: $7,418,000) were past due
but not impaired.
For the year ended 31 December 2015, credit risk
associated with the receivable balances from other
related entities and the maximum exposure to credit
risk is the total of the related party receivables.
The maximum exposure to credit risk at 31 December
2016 is equal to the carrying amount of cash and cash
equivalents and trade and other receivables.
The Group is not exposed to any concentrations
of credit risk within cash and cash equivalents or
trade and other receivables.
Credit risk further arises in relation to financial
guarantees given to certain parties from time
to time.
4.8.4 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

37
LESS THAN
ONE YEAR
$’000
BETWEEN ONE
AND TWO YEARS
$’000
BETWEEN TWO
AND FIVE YEARS
$’000
OVER FIVE YEARS
$’000
31 DECEMBER 2016
Trade payables 55,788 - - -
Bank loans 4,480 4,480 116,966 -
Related party loans - - - -
Gross liability 60,268 4,480 116,966 -
Less: interest (4,480) (4,480) (4,480)
Total financial liabilities
55,788 - 112,486 -
31 DECEMBER 2015
Trade payables 91,758---
Bank loans 9,6949,694199,054-
Related party loans322,304---
Gross liability423,7569,694199,054-
Less: interest(9,746)(9,694)(14,554)
Total financial liabilities
414,010-184,500-
The tables below analyse the Group’s financial liabilities including interest to maturity into relevant maturity groupings
based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the
tables are the contractual undiscounted cash flows.
4.9 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.
4.9.1 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).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

38
2016
$’000
2015
$’000
RECURRING FAIR VALUE MEASUREMENTS (LEVEL 3)
FINANCIAL ASSETS
Financial assets at fair value through profit or loss
Shares in other companies
A
-
31,701
Financial Instrument
B
-
94,095
Total financial assets
C
-
125,796
NON-FINANCIAL ASSETS
Freehold land and buildings
Freehold land
1,381
2,990
Buildings
12,345
480
Total non-financial assets1 3,72 6
3,470
4.9.2 Recognised fair value measurements
(A) Shares in other companies represent ownership interests in companies that are not consolidated or equity accounted. These were disposed of as
part of the sale of the Group’s interest in Australian Radio Network on 24 June 2016. Refer to Note 6.1 for further details. (B) Financial instrument held by
Level 4 Partnership refers to an investment in a debenture issued by Nathco Holdings Pty Ltd (Nathco), a member of the APN News and Media Group.
The terms of debenture entitle the Level 4 Partnership to receive 95% of the profits of Nathco. This was disposed of on 24 June 2016, refer to note 6.1.
(C) Other financial assets of $5,988,765 (Dec 2015: $2,590,000) are held at cost and therefore have been excluded from this table.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
All fair value measurements referred to above are in 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
reporting period.

39
4.9.3 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 trade receivables and payables
are assumed to approximate their fair values due to their
short-term nature. There are no outstanding non-current
receivables as at 31 December 2016 or 31 December
2015 (level 3).

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 period ending 31 December 2016,
the borrowing rates were determined to be between
3.5% and 4% (2015: between 5.0% and 6.1%), 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).

4.9.4 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. This is the case for certain shares in other
corporations disclosed in notes 4.9.2 and 6.4.3, which
are valued using discount rates, forecast cash flows,
EBITDA multiples estimated by management based on
comparable transactions and industry data. These were
disposed of as part of the demerger. Refer to note 6.1.
Specific valuation techniques used to value financial
instruments include:
• The use of quoted market prices or dealer quotes
for similar instruments; and
• Other techniques, such as discounted cash flow
analysis, are used to determine fair value for the
remaining financial instruments.

The Group obtains independent valuations at least
every three years for its freehold land and buildings
(classified as property, plant and equipment in note
3.2), less subsequent depreciation for buildings. This
is considered sufficient regularity to ensure that they
carrying amount does not differ materially from that
which would be determined using fair value at the end
of the reporting period. All resulting fair value estimates
for properties are included as Level 3.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

40
2016
$’000
2015
$’000
REPORTED INCOME TAX EXPENSE / (BENEFIT) COMPRISES:
Current tax expense / (benefit)
70,79 1
26,536
Deferred tax expense / (benefit)
8 ,1 7 5
(316)
(Over) / under provision in prior years
(3,310)
(648)
Income tax expense75,656
25,572
Income tax is attributable to:
Profit from continuing operations
64,050
(1,207)
Profit from discontinued operations
11,606
26,779
Total income tax expense75,656
25,572
INCOME TAX EXPENSE DIFFERS FROM THE AMOUNT
PRIMA FACIE PAYABLE AS FOLLOWS:
Profit from operations before tax
From continuing operations
13,498
(11,475)
From discontinued operations
136,701
79,944
150,199
68,469
Prima facie income tax at 28%
42,056
19,17 1
IRD settlement
16,968
-
Non assessable asset sales and exempt distribution receipts
(275)
(773)
Non-deductible impairment / revaluation
-
3,748
Non-deductible expenses
1,554
664
Derecognition of deferred tax on losses and foreign tax credits
62,035
-
Derecognition of deferred tax on intangible assets
(15,803)
-
Differences in international tax rates
(2)
2,943
Effects of accounting for discontinued operations
(26,498)
-
Other
(1,069)
467
(Over) / under provision in prior years
(3,310)
(648)
Income tax expense75,656
25,572
5.1 INCOME TAX
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5.0 TAXATION

41
Deferred tax assets and liabilities are attributable to:
BALANCERECOGNISED
IN INCOME
$’000
RECOGNISED
IN EQUITY
$’000
OTHER
MOVEMENTS
$’000
BALANCE
$’000
2015
Tax credits912978--
1,890
Tax losses60,5761,593-4,980
6 7,1 4 9
Employee benefits2,398589--
2,987
Doubtful debts520116--
636
Accruals / restructuring(1,563)(849)-3,117
705
Intangible assets (41,396)1,529(171)(3,117 )
(43,155)
Property Plant and
Equipment
(12,963)(4,787)-8,890
(8,860)
Other(3,640)1,147-(8,890)
(11,383)
4,844316(171)4,980
9,969
2016
Tax credits1,890(1,887)--
3
Tax losses67,14 9(61,549)-(5,600)
-
Employee benefits2,987(1,554)--
1,433
Doubtful debts636(345)--
291
Accruals / restructuring705397--
1,102
Intangible assets (43,155)42,031595-
(529)
Property Plant and
Equipment
(8,860)3,490--
(5,370)
Other(11,383)11,242--
(141)
9,969(8,175)595(5,600)
(3,211)
5.2 DEFERRED TAX
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

42
Group deferred income tax assets and liabilities are
presented net in the analysis above. These include net
deferred income tax liabilities of $33,778,000 (2015:
$36,944,000) arising from the Group’s Australian
subsidiaries. Also refer to note 6.1 for further information
regarding the Demerger. For the year ended 31 December
2015 the net deferred tax asset of $9,969,000 consisted
of a deferred tax asset of $46,065,000 and a deferred tax
liability of $36,096,000 as shown on the balance sheet.
There are unrecognised tax losses of $1,811,935
(AUD1,744,812) 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 were not offset against the deferred tax
liabilities of the rest of the Group because they are
levied by a different tax authority.
5.3 IRD SETTLEMENT

The tax expense from continuing operations of NZ$64.05
million comprises a NZ$17 million cash payment to
fully settle historical tax disputes with the New Zealand
Inland Revenue Department (“IRD”), the utilisation and
derecognition of historically recognised tax losses
and other deferred tax balances related to the
demerged business.
The Company has previously disclosed that the IRD was
auditing or reviewing several taxation matters, including
the dispute with the IRD regarding the Mandatory
Convertible Note (“MCN”) transaction. These matters
were disclosed in previous financial statements and in an
Explanatory Memorandum dated 11 May 2016 relating to
the Demerger of the Company from APN.

On 23 June 2016, the Company and APN reached a
binding heads of agreement with the IRD to settle the
MCN transaction, the Branch financing transaction, non-
resident withholding tax and thin capitalisation issues,
and a further matter that was under review by the IRD.
This settlement closes off all current areas of audit
and dispute between the IRD and the Company. The
settlement was for the total sum of NZ$33.9 million, with
the cost of settlement shared between the Company
and a subsidiary of APN on a near equal basis. Payment
occurred on 26 August 2016. The settlement utilised
NZ$56 million of tax losses.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

43
Accounting policies
The tax expense for the period 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.
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 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.
Deferred income tax 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.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates,
except for deferred income tax liability 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.
Deferred income tax 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 taxes 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

44
6 .1 NZME DEMERGER FROM APN
On 11 May 2016, APN News & Media Limited (“APN”), then
the ultimate parent entity of the Company announced
a demerger of 100% of the Group to APN shareholders
(“Demerger”), subject to a majority shareholder vote
held on 16 June 2016. The Demerger was approved by
the requisite majority of APN Shareholders and all other
conditions precedent to the Demerger were satisfied or
waived. The Demerger was completed on 29 June 2016.
On 27 June 2016 the Company was listed as a separate
standalone entity on the NZX Main Board and ASX under
the ticker code NZM on a deferred settlement basis (on
a post consolidation basis). Trading of NZME shares
commenced on a normal settlement basis on 1 July 2016.

Prior to the Demerger, APN initiated an internal
restructure, being an internal restructure to separate and
align the relevant businesses, assets and liabilities of APN
with the appropriate entity prior to the Demerger (the
“Internal Restructure”).
The Demerger Implementation Deed, entered into by the
Company and APN, provided for the Internal Restructure
to be completed so that:
• The Group was created as an identifiable and separate
corporate group under NZME Limited, capable of
operating on a standalone basis; and
• All subsidiaries, assets and liabilities which did not
relate directly to the Group business were held by APN
following the Demerger.

Broadly, the Internal Restructure entailed the following:
• Certain subsidiaries, business, assets and liabilities
relating to the Group business were aligned or
transferred to entities that would be subsidiaries of the
Company following the Demerger;
• Certain subsidiaries, business, assets and liabilities
relating to the APN business which are held by
subsidiaries of the Company were aligned or
transferred to entities that would be subsidiaries of
APN following the Demerger;
• Various intercompany loans, receivables and payables
were repaid (other than ordinary trading receivables
and payables which will be settled on normal
commercial terms) so that upon the Demerger there
were no loans across the APN and NZME businesses
outstanding; and
• Various distributions were made between the
subsidiaries of NZME and subsidiaries of APN.
On 24 June 2016, the Company declared and
settled a dividend of $191,257,897 to APN International
Pty Limited.
In order to give effect to the share and asset
transfers forming part of the Internal Restructure, a series
of share and asset sale agreements were entered into
between APN and the Group. These sale agreements
were on standard terms for intra-group share and asset
sales, including limited title and capacity warranties
given by both parties.

Acquisition of businesses
The acquisition of the entities have been recognised
as common control transactions. The Group applies
the predecessor values method, without any step up
to fair value. All the assets and liabilities acquired were
recognised at book values per the consolidated financial
statements of the highest entity that had common
control (i.e. APN) immediately prior to the Internal
Restructure. The difference between the consideration
established under the Internal Restructure and the
adjusted carrying value of the assets and liabilities (at
the date of the transaction) acquired totalling $51.9
million has been recognised in equity. No goodwill was
created or recognised. The Group financial statements
incorporate the acquired entity’s results only from the
date of acquisition. The corresponding amounts of the
previous period are not restated.

Disposal of businesses
Upon the disposal of entities, where there was a loss
of control, the Group has derecognised the assets and
liabilities of the subsidiary, any related non-controlling
interests and other components of equity. Any resulting
gain or loss is recognised in the income statement. The
Group’s interest in Australian Radio Network (“ARN”), The
Level 3 Partnership and The Level 4 Partnership were
acquired by a subsidiary company of APN on normal
commercial terms.

Asset acquisition
On 24 June 2016, the Group acquired certain NZ
publishing masthead brands (refer to note 3.1) on
normal commercial terms from a subsidiary
company of APN.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6.0 GROUP STRUCTURE AND INVESTMENTS IN OTHER ENTITIES

45
6.1.1 Business disposed – discontinued operations
The results of ARN, The Level 3 Partnership and The
Level 4 Partnership prior to disposal are reported as
discontinued operations. Information relating to the
discontinued operations for the period to the date of
disposal is set out below.

As a result of the Internal Restructure, the disposals resulted
in a recognition of a gain of $192,519,000 (tax impact: $nil).

For the entities disposed where there was a loss of
control, the Group has derecognised the assets and
liabilities of the subsidiary, any related non-controlling
interests and other components of equity. Any resulting
gain or loss is recognised in the income statement.
Balances in the foreign currency translation reserve in
respect of NZME’s net investment in entities disposed
have been recycled through the income statement.
The Group’s 98% interest in The Level 3 Partnership was
sold to a subsidiary of APN on normal commercial terms.
This APN subsidiary had previously held a 1% interest
in The Level 3 Partnership. The consideration received
was $119,937,000. This transaction, alongside the sale
of the Group’s interest in ARN, resulted in a decrease in
non-controlling interests in ARN. The carrying amount of
the non-controlling interests in ARN on the date of the
transaction was $180,520,000. The Group recognised
a decrease in non-controlling interests of $180,520,000.
The combined results of discontinued operations
included in profit or loss and cash flows for the period are
set out below.

The comparative income statement has been
re-presented to include those operations classified as
discontinued in the current year.
2016
$’000
2015
$’000
Revenue and other income
127,542
252,019
Expenses from operations before finance costs, depreciation
& amortisation
(83,606)
(154,518)
Finance costs
(599)
(422)
Depreciation and amortisation
(2,348)
(4,512)
Change in fair value of financial instruments
A
(31,481)
(12,623)
Profit / (loss) before income tax9,508
79,944
Income tax expense
(11,606)
(26,779)
Profit / (loss) after income tax of discontinued operations(2,098)
53,165
Profit / (loss) on sale of businesses after income tax
192,519
-
Reclassification of foreign currency translation reserves to the
income statement
(65,326)
-
Profit / (loss) after income tax from discontinued operations125,095
53,165
Profit / (loss) from discontinued operations is attributable to:
Owners of the parent entity
115,502
37,649
Non-controlling interests
9,593
15,516
Profit / (loss) from discontinued operations125,095
53,165
Net cash inflows from operating activities
3 7, 3 2 2
84,128
Net cash outflows from investing activities
(1,120)
(88,763)
Net cash inflows/(outflows) from financing activities
( 3 7, 2 7 7 )
3,978
Net decrease in cash generated by the businesses(1,075)
(657)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Footnote on the next page.

46
(A) Change in fair value of financial instruments relates to the Level 4 Partnership’s investments in a debenture issued by Nathco Holdings Pty Ltd,
a member of the APN group. NZME’s interest in the Level 4 Partnership was subsequently sold to APN, prior to Demerger.
2016
$’000
Cash and cash equivalents
2,564
Trade and other receivables
230,754
Intangible assets
401,258
Property, plant and equipment
1 6,7 7 5
Other financial assets
91,294
Other assets
324
Trade and other payables
(34,365)
Current tax payable
(82)
Provisions
(3,996)
Deferred tax liabilities
( 33,7 78 )
Net assets derecognised670,74 8
Less: net assets attributable to non-controlling interests
(180,520)
Net assets derecognised attributable to equity holders of NZME Limited490,228
Consideration received
682,747
Profit / (loss) on sale192,519
Income tax expense on gain
-
Profit / (loss) on sale after income tax192,519
Carrying value of net assets derecognised
Accounting policies
Discontinued operations and assets held for sale
Non-current assets (or disposal Groups) are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use. They are measured at the lower of
their carrying amount, and their fair value less costs to sell, except for assets such as deferred tax assets, assets
arising from employee benefits, financial assets and investment property that are carried at fair value and
contractual rights under insurance contracts, which are specifically exempt from this requirement.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while
they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group
classified as held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are
presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as
held for sale are presented separately from other liabilities in the balance sheet.
A discontinued operation is a component of the entity that has been disposed of or is classified as held for
sale and that represents a separate major line of business or geographical area of operations, is part of a
single coordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired
exclusively with a view to resale. The results of discontinued operations are presented separately on the face of
the income statement.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

47
2016
$’000
Net assets acquired
Trade and other receivables
579
Masthead brands
146,976
Other
17
Total assets147,572
Trade and other payables
216
Current tax payable
425
Total liabilities641
Net assets attributable to equity holders of NZME Limited146,931
6.1.3 Net cash flow
The net cash flow from the sale of businesses, acquisitions of businesses and net assets and the settlement of
dividends was NZ$96 million and has been presented within investing activities in the cash flow statement.
This is made up as follows:
2016
$’000
NET CASH FLOW
Cash consideration received 98,500
Cash and cash equivalents disposed of(2,564)
Net cash inflow of internal restructure95,936
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6.1.2 Businesses and net assets acquired
As part of the Internal Restructure undertaken by the
Group pursuant to the Merger Implementation Deed
with APN, several entities, assets and liabilities have
been acquired by the Group.

The acquisition of the non-controlling interest in NZME
Radio Limited (“NZME Radio”) has been treated as
a common control transaction. Any gain or loss on
acquisition of an ownership interest held by a non-
controlling party is recognised directly in equity. The
difference between the consideration transferred and
the carrying value of APN’s non-controlling interest in
NZME Radio at 24 June 2016 resulted in an adjustment
of $45,776,000 being recognised directly within equity.

The acquisition of NZME Educational Media Limited
has been recognised as common control transaction.
The difference between the consideration established
under the internal restructure and the carrying value of
the assets and liabilities (at the date of the transaction)
acquired totalling $6,110,000 has been recognised
in equity.

The Group also acquired certain NZ publishing
masthead brands (refer to note 3.1) on normal
commercial terms from a subsidiary company of APN.
The total carrying value of the assets and liabilities
that were acquired by the Group as part of the Internal
Restructure that occurred prior to the Demerger
were as follows:

48
Accounting policies
Common control transactions
Business combinations in which all of the combining entities or businesses ultimately controlled by the same
party or parties both before and after the combination are recognised as common control transactions.
The Group applies the predecessor values method, without any step up to fair value. The net assets acquired,
including goodwill, are incorporated in the Group financial statements at the book values as per the
consolidated financial statements of the highest entity that has common control (i.e. APN). The difference
between any consideration given and the aggregate book value of net assets (at the date of the transaction)
of the acquired entity is recorded as an adjustment to equity. No additional goodwill is created.
The Group financial statements incorporate the acquired entity’s results only from the date of acquisition.
The corresponding amounts of the previous period are not restated.
6.2 BUSINESS COMBINATION

During the year ended 31 December 2015, the Group gained control over Radio 96FM Perth Pty Ltd for a consideration
of AU$78,000,000 less working capital adjustments. The acquisition accounting was disclosed in the Company’s
financial statements for the year ended 31 December 2015. Radio 96FM Perth Pty Ltd was subsequently disposed of as
part of the Demerger (refer to note 6.1).
Significant judgement
Prior to the Demerger as described in note 5.1, the Group held 50% of the issued capital of ARN, but exercised
effective control over the entity based on the Board and management representation and the 76.8% economic
interest held by the Group.
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 unless otherwise stated. Changes in control over entities occurred on Demerger
(see note 6.1).
6.3 CONTROLLED ENTITIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

49
NAME OF ENTITY
2016
2015
Adhub Limited
100%
100%
APN Braiside Pty Limited
-
100%
APN Milperra Pty Limited
-
100%
Australian Radio Network Pty Ltd
-
50%
Cardcorp (Manufacturing) Pty Limited
-
100%
ESKY Limited
100%
100%
Grabone Limited
100%
100%
Idea HQ Limited
100%
100%
Mt Maunganui Publishing Co Limited
100%
100%
NZME 2014 Limited
100%
100%
NZME Australia Pty Limited (Previously GrabOne Australia Pty Limited)
A
100%
100%
NZME Digital Limited
100%
100%
NZME Educational Media Limited
100%
-
NZME Finance Limited
100%
100%
NZME Holdings Limited (Previously: APN Holdings NZ Limited)
100%
100%
NZME Investments Limited (Previously: APN NZ Investments Limited)
100%
100%
NZME Online Limited
100%
100%
NZME Print Limited (Previously: APN Print NZ Limited)
100%
100%
NZME Publishing Limited
100%
100%
NZME Radio Investments Limited
100%
50%
NZME Radio Limited
B
100%
50%
NZME Specialist Limited (Previously: APN Specialist Publications NZ Limited)
100%
100%
NZME Trading Limited
100%
100%
Radio 96FM Perth Pty Limited
A
-
50%
Regional Publishers Limited
100%
100%
Sell Me Free Limited
100%
100%
Sella Limited
100%
100%
Stanley Newcomb & Co Limited
100%
100%
The Hive Limited
100%
100%
The Level 3 Partnership
-
98%
The Level 4 Partnership
-
99%
The New Zealand Radio Network Limited
100%
50%
The Radio Bureau Limited
100%
50%
Trade Debts Collecting Co Limited
100%
100%
W & H Interactive Limited
100%
100%
Wilson & Horton Australia Pty Limited
-
100%
(A) Incorporated in, and operate in, Australia. (B) One “Kiwi Share” held by the Minister of Finance.
The rights and obligations are set out in the NZME Radio Limited constitution.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

50
(A) The ARN owned 100% of NZME Radio as at 31 December 2015. As at 31 December 2016, the Group owns 100% of NZME Radio.

Refer to note 6.1 for further transactional information on the disposed entities.
Accounting policies
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated
income statement, statement of comprehensives income, statement of changes in equity and balance sheet
respectively. The effects of all transactions with non-controlling interests are recorded in equity if there is no
change in control. Where there is a loss of control, any remaining interest in the entity is remeasured to fair value
and a gain or loss is recognised in the consolidated income statement. Any losses are allocated to the non-
controlling interest in subsidiaries even if the accumulated losses should exceed the non-controlling interest in
the individual subsidiary’s equity.
Accounting policies
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 (refer note 6.2), other than for common control transactions
(refer note 6.1).
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 comprehensives income, statement of changes
in equity and balance sheet respectively.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Ownership
interest held by
the Group
Ownership
interest held by
non-controlling
interest
NAME OF ENTITYPLACE OF
BUSINESS
COUNTRY OF
INCORPORATION
2016
2015
2016
2015PRINCIPLE
ACTIVITIES
Australian Radio
Network Pty
Limited
A
Australia
and New
Zealand
Australia
-
50%
-
50%
Commercial
radio
6.4 INTERESTS IN OTHER ENTITIES
6.4.1 Material subsidiaries with
non-controlling interests
Set out below are the Group’s principal subsidiaries with
material non-controlling interests. Unless otherwise
stated, the subsidiaries as listed below have share capital
consisting solely of ordinary shares, which are held directly
by the Group, and the proportion of ownership interests
held equals to the voting rights held by the Group.

On 24 June 2016, as part of the Internal Restructure,
the Group’s interest in ARN (including Brisbane FM Radio
Pty Limited, Radio 96FM Perth Pty Limited and Emotive
Pty Limited) was sold to APN on normal commercial
terms. NZME Radio, which was previously owned by
the ARN, was acquired by an entity within the
NZME Group on 24 June 2016. Refer to Note 6.1
for further details.

51
OWNERSHIP
INTEREST
2016
OWNERSHIP
INTEREST
2015
Chinese New Zealand Herald Limited
A
50%
-
Eveve New Zealand Limited
A
40%
-
KPEX Limited
A
25%
25%
New Zealand Press Association Limited
A
38.82%
38.82%
Restaurant Hub Limited
A
40%
-
The Beacon Printing & Publishing Company Limited
A
21%
21%
The Gisborne Herald Company Limited (held through Essex
Castle Limited as a trust company for NZME Publishing Limited)
A
49%
49%
The Radio Bureau
B
50%
50%
The Wairoa Star Limited
A
40.41%
40.41%
Ratebroker Limited
A
20%
-
The Newspaper Publishers Association of New Zealand Incorporated
C
-
-
Online Media Standards Authority Incorporated
C
-
-
New Zealand Press Council
C
-
-
Radio Broadcasters Association Incorporated
C
-
-
6.4.2 Associates, joint ventures and joint operations
The Group has the following associates, joint ventures and joint operations:
(A) These entities are classified as joint ventures or associates. Because the effects of equity accounting are immaterial, these investments are carried at
cost (refer note 6.4.3). (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.(C) These are bodies with which entities in the Group have memberships, but no ownership interest.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

52
6.4.3 Other financial assets
2016
$’000
2015
$’000
Shares in other corporations
5,988
34,291
Financial instrument held by Level 4 Partnership
-
94,095
Total other financial assets5,988
128,386
For the year ended 31 December 2016, shares in other corporations consist of investments in entities that are not
consolidated or equity accounted (see also note 6.4.2). These investments are carried at cost.
For the year ended 31 December 2015, shares in other corporations consisted of:
• Investments in entities that are not consolidated or equity accounted of $2,590,000 (see also note 6.4.2), and
•  Interests in other companies that are not consolidated or equity accounted, but was carried at fair value of
$31,701,000. This was disposed as part of the sale of the Group’s interest in ARN on 24 June 2016. Refer to
Note 6.1 for further details on the Demerger.
Accounting policies
Associates
Associates are all entities over which the Group has significant influence but not control or joint control. Material
investments in associates are accounted for in the consolidated financial statements using the equity method
of accounting, 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.
For material joint operations, 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 financial statements under the appropriate headings.
Interests in material 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
The carrying amount of equity-accounted investments is tested for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. Where the effects of equity
accounting is immaterial, investments are carried at cost.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6.4.3 Other financial assets

53
2016
$’000
2015
$’000
TOTAL REMUNERATION FOR DIRECTORS
AND OTHER KEY MANAGEMENT PERSONNEL :
Short term benefits
5,510
3,838
Post-employment benefits
-
125
Termination benefits
52
482
Share-based payments
144
315
5,70 6
4,760
7.1 RELATED PARTIES

7.1.1 Key management compensation
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.
The table excludes any dividends that may have been
received due to shares of the Company being held by
the Directors or other key management personnel.

7.1.2 Transactions with other related parties
The Company was, until the 29 June 2016, a wholly
owned subsidiary of the APN News & Media Limited
(“APN”) group. With the exception of transactions
relating to tax losses, transactions with Beacon Print
Limited and transactions relating to new associates and
joint ventures which includes transactions for the full
year, the transactions with related parties as described
below include transactions up to 29 June 2016, the date
on which these parties ceased being related parties to
the Group.

Since 31 December 2015, amounts due from related
parties of $304,931,000 and amounts due to related
parties of $322,304,000 have been settled as reported
in the interim financial statements for the six months
ended 30 June 2016, with a significant portion of the
settlement occurring as part of the Internal Restructure
(refer to Note 6.1 for further details).

During the period, the Group charged interest of
$358,780 (2015: $1,032,232) to Biffin Pty Ltd a member
of the APN Group. Biffin Pty Ltd charged management
fees to NZME Holdings Limited (previously: APN Holdings
NZ Limited) of $611,056 (2015: $2,050,000). A Group
company, NZME Holdings Limited charged shared
services fees totalling $1,456,000 (2015: $2,258,000) to
related parties. The Group purchased print services worth
$4,134,000 (2015: $4,949,000) from Beacon Print Limited,
a company in which the Group holds an interest in. Biffin
Pty Ltd repaid loans of $5,012,246 (2015: $104,990,779)
to Group companies and borrowed $nil (2015:
$3,452,707) from group companies.

Wilson & Horton Finance Pty Ltd, New Zealand Branch
(the “Branch”), charged royalty fees of $12,216,000
(2015: $22,853,000), advanced $13,200,000 (2015:
$17,762,603), repaid loans of $539,000 (2015: $297,000)
and charged interest of $2,765,000 (2015: $6,186,000) to
the Group. The Group charged the Branch, office rental
and service fees of $78,000 (2015: $168,000).
New Zealand entities within the Group received tax
losses from New Zealand entities outside the Group of
$nil (2015: $18,437,826) for consideration of $nil (2015:
$5,162,591). New Zealand entities in the Group offset
tax losses to New Zealand entities outside the Group
of $35,110,134 (2015: $650,905) for consideration of
$9,830,837 (2015: $182,253).

In November 2015, the Company, Fairfax Media, TVNZ
and MediaWorks launched a new local advertising
exchange service, KPEX Limited, offering media
agencies and clients a programmatic option for
purchasing online advertising. The group received
advertising revenue of $2,359,475 (2015: $84,788) and
paid commission of $358,782 (2015: $12,467).

During 2016, the Group acquired interests in certain
joint ventures and associates. The Group has entered
into commitments to provide future services to joint
ventures and associates (such as house advertising,
occupancy space at NZME offices, business as usual
finance and human resources support). During the year
such services were provided to Eveve, valued at $10,706
(2015:$nil), and Restaurant Hub, valued at $41,415
(2015:$nil). The outstanding balances for future services
are included in the table on the next page.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
7.0 OTHER NOTES

54
2016
RECEIVABLES
$’000
2015
RECEIVABLES
$’000
2016
PAYABLES
$’000
2015
PAYABLES
$’000
Balances with related party
Biffin Pty Limited
-
25,807
-
37,78 5
Media Tek Pty Limited
-
53,434
-
1,068
APN Newspapers Pty Limited
-
225,184
-
55,206
NZME Educational Media Limited
-
216
-
1,428
Wilson & Horton Finance Pty Limited
– New Zealand Branch
-
-
-
153,224
APN News & Media Limited
-
-
-
67,898
KPEX Limited
750
-
113
-
Chinese New Zealand Herald Limited
-
-
43
-
Eveve New Zealand Limited
-
-
194
-
Restaurant Hub Limited
-
-
604
-
Ratebroker Limited
-
-
1,70 0
-
Other related party balances
-
290
-
5,695
Total related party receivables and payables750
304,931
2,654
322,304
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

55
7.2 CONTINGENT LIABILITIES
7.2.1 Claims
Claims for damages are made against the Group from
time to time in the ordinary course of business. Sky
Network Television Limited initiated proceedings against
NZME Publishing Limited and other NZ media companies
alleging breaches of copyright in relation to the use of
rugby video footage in news stories. The Directors cannot
presently estimate a potential liability, if any. The Group
continues to defend this claim.
7.3 SUBSEQUENT EVENTS
Refer to note 1.4.2 for a description of events relating to
the proposed merger with Fairfax New Zealand.

The Directors are not aware of any other material events
subsequent to the balance sheet date.
7.4 NEW STANDARDS AND INTERPRETATIONS
ADOPTED IN THE CURRENT YEAR
The Group applied the following new or revised
pronouncements for the first time during the year.
None of these pronouncements had a material
impact on the disclosures or amounts recognised
in the Group’s consolidated financial statements.

Accounting for acquisitions of interests in joint
operations (amendments to NZ IFRS 11)
(effective 1 January 2016)
The amendment to NZ IFRS 11 clarifies the accounting for
the acquisition of an interest in a joint operation where
the activities of the operation constitute a business.

XRB A1 Application of the accounting standards
framework (effective 1 January 2016)
XRB A1 Application of the Accounting Standards
Framework supersedes all previous versions of XRB
A1. This final version of XRB A1 does not change the
requirements of the accounting standards framework,
however the XRB took the opportunity to
remove duplications and clarify the meaning
of public accountability.
Amendments to for-profit accounting standards as
a consequence of XRB A1 and other amendments
(effective 1 January 2016)
Amendments to clarify minor points, align terminology
with that used in XRB A1, amend RDR concessions and
update for editorial changes in various accounting
standards, including NZ IFRS 1, NZ IFRS 4, NZ IAS 1,
NZ IAS 8, NZ IAS 33, NZ IAS 34, FRS-43 and FRS-44.
All other new standards, interpretations and amendments
are either not applicable to the Group or not material.
7.5 STANDARDS AND INTERPRETATIONS ISSUED
BUT NOT YET EFFECTIVE
NZ IFRS 15 Revenue from contracts with customers
replaces NZ IAS 18 and NZ IAS 11 and is effective for
periods commencing 1 January 2018. The new standard is
based on the principle that revenue is recognised when
control of a good or service transfers to a customer. The
notion of control therefore replaces the existing notion of
risks and rewards.

NZ IFRS 16
Leases replaces NZ IAS 17 and is effective
for periods commencing 1 January 2019. It requires a
lessee to recognise a lease liability reflecting future lease
payments and a “right-of-use asset” for virtually all lease
contracts. Included is an optional exemption for certain
short-term leases and leases of low-value assets
for lessees.
The impact that these standards will have on
the Group’s financial statements has not yet
been determined.
All other standards, interpretations and amendments
issued but not yet effective are either not applicable
to the Group or not material.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz
Independent auditor’s report
To the shareholders of NZME Limited
The consolidated financial statements comprise:
• the balance sheet as at 31 December 2016
• the income statement for the year then ended
• the statement of comprehensive income for the year then ended
• the statement of changes in equity for the year then ended
• the statement of cash flows for the year then ended
• the notes to the financial statements, which include a summary of significant accounting policies.
Our opinion
In our opinion, the consolidated 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 2016, 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 (IFRS).
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 consolidated 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.
We are independent of the Group in accordance with Professional and Ethical Standard 1 (Revised)
Code of Ethics for Assurance Practitioners (PES 1) issued by the New Zealand Auditing and Assurance
Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Our firm carries out other services for the Group in the areas of taxation compliance and advisory
services, tax pooling services, advisory services in connection with the potential merger with Fairfax,
and other assurance services. The provision of these other services has not impaired our
independence as auditor of the Group.

PwC 2
Our audit approach
Overview

An audit is designed to obtain reasonable assurance whether the financial
statements are free from material misstatement.
Overall Group materiality: $1,865,000, which represents 5% of profit before
tax from continuing operations excluding one-off items of the Group.
We chose profit before tax 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. We have adjusted
this benchmark for one-off transactions to reduce volatility and to reflect the
underlying performance of the Group.
Our key audit matters are:
• Accounting for the demerger of NZME from APN News & Media Limited
• Impairment testing of intangible assets.
Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated 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 aggregate on the consolidated financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the consolidated financial
statements and our application of materiality. 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.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the consolidated 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.

PwC 3
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current year. These matters were addressed in
the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter How our audit addressed the key audit matter
Accounting for the demerger of NZME
from APN News & Media Limited
As set out in note 6.1, on 29 June 2016, the
group completed the demerger of 100% of
NZME Limited Group (NZME) from APN
News and Media Limited (APN). This was a
significant event for the Group and, prior to
the demerger, required a complex internal
restructure to separate and align the
relevant businesses, assets and liabilities
within the respective entities. The internal
restructure involved:
• The acquisition of businesses, as
detailed in note 6.1, by NZME from
APN. These were accounted for as
common control transactions using the
predecessor values method. The
difference between the consideration
paid, which management determined
was the best estimate of the fair value of
the businesses, and the predecessor
values was recorded as a reduction to
equity of $51.9m.
• The sale of businesses, as detailed in
note 6.1, by NZME to APN resulted in
the recognition of a gain on disposal in
the Income Statement of $127.2m. This
was the difference between the carrying
value of the net assets disposed and the
consideration of $682.7m which
management determined was the best
estimate of the fair value of the
businesses.
• The acquisition of masthead brands as
detailed in note 6.1 by NZME from APN
for consideration of $147.0m which was
determined based on management’s
best estimate of the fair value of the
masthead brands. These were
accounted for as asset acquisitions and
the acquired assets recorded at cost.
Our audit procedures included obtaining an
understanding of each phase of the restructure and
demerger, including understanding the accounting
treatment adopted by management.
We performed audit procedures over the demerger and
allocation of assets and liabilities to ensure these
followed the legal execution of all steps in the
transaction. We ensured that the accounting for each
step of the transaction met the requirements of NZ
accounting standards.
Specifically, we performed the following procedures:
• Obtained copies of all relevant contracts,
agreements, and valuations.
• Assessed whether the recognition of business sales
as common control transactions was supported by
contracts and was consistent with the
requirements of NZ accounting standards.
• Recalculated the amount recorded in equity in
relation to the businesses acquired.
• Agreed the consideration amounts to supporting
contracts, and the predecessor values to the
underlying accounting records of the businesses
acquired.
• Recalculated the gain on disposal of businesses.
• Agreed the net assets derecognised to the carrying
value of the assets and liabilities disposed as at the
date of disposal, and the consideration amounts to
supporting contracts.
• Agreed the terms and conditions of the acquisition
of the masthead brands, including the acquisition
price to the legal agreements entered into.
• Assessed the related tax implications including the
treatment of the gain on disposal for tax purposes.
• Agreed the actual cash flows associated with the
transaction to supporting contracts.
Examined the disclosures in note 6.1 and 5 of the
financial statements to ensure that it was accurate and
compliant with the requirements of NZ accounting
standards.

PwC 4
Key audit matter How our audit addressed the key audit matter
Impairment testing of intangible assets
As outlined in note 3.1, total non-
amortising intangible assets, including
goodwill ($70.8m), masthead brands
($147.0m), and brands ($59.1m) have a
carrying value of $276.8m at 31 December
2016 and represent 57% of total assets.
Management utilised a value in use
methodology to determine the value of the
business using discounted cash flows and
performed an impairment assessment of
the goodwill and non-amortising intangible
assets. This assessment is complex in
nature and includes key estimates and
assumptions made by management,
particularly in the following areas:
• The assessment of cash generating
units (CGUs) – management have
determined that the NZME business
constitutes one CGU.
• Expected future trading results –
management have based these on
budgets and forecasts which have been
approved by the Board of Directors.
• The weighted average cost of capital
used as the discount rate in the model –
management have applied a rate of
9.5%.
• The expected long term growth rate –
management have applied a rate of 0%.
• Considering sensitivity by determining
and forecasting other reasonably
possible scenarios and assessing the
impact on the valuation of these
scenarios.
In their assessment management
determined that the model was most
sensitive to the ratio of growth in digital
revenue as compared to the decline in print
revenue.
The impairment assessment completed by
management for 2016 calculated the value
of the business as higher than the carrying
value of applicable net assets and no
impairment was identified.
We considered management’s identification of cash
generating units by gaining an understanding of the
business, how it is managed, and how the results are
reported to management and the directors.
We tested the calculation of the valuation model
including the inputs and mathematical accuracy of the
model and comparison to the relevant net assets value
of the Group.
We also assessed key estimates and assumptions made
by management. Our audit procedures included the
following:
• We gained an understanding of the business
process applied by management in determining
whether there are any indicators of impairment in
the value of goodwill and non-amortising
intangible assets.
• We agreed the future cash flows included in
management’s model to the budgets and forecasts
approved by the Board of Directors.
• We considered the reasonableness of key
assumptions in the cash flow forecasts, in
particular revenue growth and the profile of print
and digital revenues, forecast margins and
terminal growth rates. We considered these with
reference to historic performance of the Group, key
initiatives being undertaken and comparison to
results of comparable companies and available
broker reports.
• We engaged an independent expert to recalculate
the weighted average cost of capital used as the
discount rate in the model and determined that the
rate used by management was within a reasonable
range.
• We considered management’s sensitivity analysis
and in particular the assumptions associated with
digital and print revenues. For each of the
scenarios we tested the mathematical accuracy of
the model, the changes made, and the impact of
those changes on the valuation.
We reviewed the disclosure in the financial statements
to ensure that this is compliant with the requirements
of NZ accounting standards.

PwC 5
Information other than the financial statements and auditor’s report
The Directors are responsible for the annual report. Our opinion on the consolidated financial
statements does not cover the other information included in the annual report and we do not, and will
not, express any form of assurance conclusion on other information. At the time of our audit, there
was no other information available to us.
In connection with our audit of the consolidated financial statements, if other information is included
in the annual report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the consolidated 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 our auditor’s
report, we conclude that there is a material misstatement of this other information, we are required to
report that fact.
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal
control as the Directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated 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 consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated 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://xrb.govt.nz/Site/Auditing_Assurance_Standards/Current_Standards/Page1.aspx
This description forms part of our auditor’s report.

PwC 6
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 Julian Prior.
For and on behalf of:



Chartered Accountants Auckland
23 February 2017

---

1

MEDIA RELEASE

24 February 2017

Stable 2016 trading EBITDA and 6 cent final dividend

NZME Limited full year results for the twelve months ended 31 December 2016

NZME Limited (NZME) today reports stable earnings from its integrated media and
entertainment business despite the challenges faced in advertising markets.

FY 2016 highlights

 Statutory NPAT
1
of $74.5 million compared to $42.9 million in FY 2015, impacted by
tax and gain on sale of interest in the Australian Radio Network
 Trading EBITDA
1
of $71.9 million, stable compared to FY 2015 of $71.8 million,
supported by a 6% reduction in operating costs from integration benefits
 Pro forma NPAT
1
of $27.8 million and Pro forma
1
EPS of 14.2 cents
 Final dividend 6.0 cents fully imputed, making a total of 9.5 cents for FY 2016
 Trading revenue
1
declined 6% in challenging advertising markets, although decline
slowed in the second half and was less than the estimated market decline
2

 Digital revenue growth of 24% in FY 2016


NZME has grown audience reach by 5% in FY 2016 across its news, sport and entertainment
brands to 3.2 million
3
. Digital audience growth was particularly strong at 19%
3
in the year,
driven by successful product development and initiatives.

NZME Chief Executive Michael Boggs said the continued focus on improving performance,
investment in people and talent, and delivering on improvement initiatives, has enabled the
company to out-perform the market in print and digital advertising revenue growth
2
.

“We continue to transform NZME to lift performance, grow audience and optimise our products.
In print we stabilised circulation and grew readership with strategies such as the relaunch of
the Herald on Sunday lifestyle magazine, to focus on Travel, a stronger commercial proposition.

“In radio we launched a new breakfast show for The Hits in Auckland, with high profile talent
to boost audience; Sarah Gandy, Sam Wallace and Toni Street.

“Following the success of NZ Herald Focus (news video show) in our digital division, NZ On Air
has funded production of our new regional video service, Local Focus, and our first long-form
documentary video “Under the Bridge”.

“This fantastic home grown content has been very well received and helped us lift native video
streams by 69%
4
in the last year, which is important as it’s one of the strongest areas of growth
in digital advertising.


1
The FY15 and FY16 Statutory Results are not reflective of the NZME business going forward due to the impact of the demerger, tax payments,
business closures and divestments. Trading EBITDA and Pro forma NPAT more appropriately reflect the company in its new structure. Reconciliation
between Statutory, Trading and Pro forma financial measures can be found in Appendix 1.
2
PwC NPA Quarterly performance comparison report Q4 2014 – Q4 2016. SMI New Zealand Agency Advertising Expenditure Report December 2016.
Note: No measure of total radio market revenue has been available in NZ since 2014 (ASA). IAB / PWC New Zealand Q3 2016 Interactive
Advertising Spend Report; digital excluding search and directories, and social media (NZ market only).
3
Nielsen CMI, November used database: Last twelve months Q1 15 – Q3 16 (population 10 years +). Based on unduplicated weekly reach of NZME
newspapers, radio stations, and monthly domestic unique audience of NZME’s digital channels. Note: Most recent data point available is last twelve
months to Q3 16.
4
Brightcove analytics, January 2015 - December 2016. Native = viewed on NZME platforms.