Half year results to 30 June 2019

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)

Results for announcement to the market
Name of issuer NZME Limited
Reporting Period Six months to 30 June 2019
Previous Reporting Period Six months to 30 June 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$181,140 (4%)
Total Revenue $181,140 (4%)
Net profit after tax from
continuing operations
$950 (73%)
Total net profit after tax $950 (73%)
Interim Dividend
Amount per Quoted Equity
Security
Nil
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
(NZ$0.24) (NZ$0.23)
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Net Profit After Tax (NPAT) of $950,000 includes the impact of NZ
IFRS16 and exceptional items. NPAT excluding NZ IFRS16 and
exceptional items was $4.7 million for the six months ended 30 June
2019, compared to $5.5 million for the six months ended 30 June 2018,
a reduction of 15%. Refer to the Consolidated Interim Financial
Statements and the results presentation for a detailed reconciliation.
Authority for this announcement
Name of person

authorised
to make this announcement
Michael Boggs
Contact person for this
announcement
David Mackrell, Chief Financial Officer
Contact phone number +64 21 311 911
Contact email address d
avid.mackrell@nzme.co.nz

Date of release through MAP

27/08/2019

Unaudited financial statements accompany this announcement.

---

1

27 August 2019

NZME LIMTED 2019 HALF YEAR FINANCIAL RESULTS

• Statutory NPAT of $1.0 million, compared to $3.7 million in H1 2018, the decrease due to reduced
revenue, the impact of NZ IFRS 16 and exceptional items.
• Total revenue of $181.1 million, down 4% compared to previous corresponding period
1
.
• Operating costs
2
(excluding digital classifieds) reduced by $4.8 million (3%) – achieved through
continued focus on cost out, increased efficiencies and reduced print volumes.
• Operating EBITDA
2
of $19.4 million, compared to $23.2 million in H1 2018.
• Operating NPAT
2
of $4.7 million, compared to $5.5 million in H1 2018, with Operating EPS of 2.4
cents per share, compared to 2.8 cents per share in H1 2018.
• Net debt reduced by $8.1 million.
• Successful launch of NZ Herald Premium – more than 15,000 paid subscribers, exceeding
subscription and revenue expectations.
• NZ Herald daily brand audience up 4.5% to 1,098,000, average issue readership up 3.9% to
477,000
3
.
• Radio revenue in growth for the half and showing positive momentum.
• Radio talent changes made as part of radio growth strategy.
• Increased radio audience market share to 37.7%
4
in June 2019, up from 34.9% in December 2018.
• OneRoof continued listings growth and revenue growth momentum to $1.3 million.
Financial summary ($m)
6 months
30 June 2019
6 months
30 June 2018
% change
Print, radio and digital revenue 178.3 186.1
(4%)
Other revenue 2.8 3.3
(15%)
Total Revenue 181.1 189.4
(4%)
Operating Costs
4
(excl. digital classifieds) (158.1) (162.9)
(3%)
Digital classifieds costs (3.6) (3.3)
9%
Operating EBITDA
4
19.4 23.2
(16%)
Depreciation and amortisation (10.6) (13.1)
(19%)
Net interest expense (2.4) (2.1)
14%
NPBT 6.4 8.0
(20%)
Tax (1.7) (2.5)
(32%)
Operating NPAT
4
4.7 5.5
(15%)
NZ IFRS16 adjustment before tax (0.7) -
-
Exceptional items before tax (4.3) (2.5)
72%
Tax impact on NZ IFRS16 and exceptional
items
1.3 0.7
86%
Statutory NPAT 1.0 3.7
(73%)

1 Previous corresponding period refers to the six months ended 30 June 2018
2 Operating results are presented excluding the impact of NZ IFRS 16 and exceptional items to allow for a like for like comparison between H1
2018 and H1 2019. Please refer to note 2.3.2 and note 2.3.3 of the Consolidated Interim Financial Statements for the period ended 30 June
2019 and slide 28 and 29 of the 2019 half year results presentation for a detailed reconciliation
3 Nielsen CMI Fused Q2 18 - Q1 19, May 2019 (population 10+ years)
4 GfK Radio Audience Measurement, Commercial Stations, NZME & Partners, major markets trended to S2 2019, Monday-Sunday 12mn-12mn,
station share % AP 18-54

2

2019 Half Year Summary

NZME Limited (NZME) is pleased to report its financial results for the six months ended 30 June 2019,
achieving some significant milestones in an exciting six months, albeit in a challenging operating
environment.

NZME launched its NZ Herald Premium offering in April 2019, giving subscribers access to New Zealand’s
best journalism, commentary and analysis across business, politics, news, sport, lifestyle and
entertainment. This offering has been a huge success with more than 15,000 paid subscribers, exceeding
subscriptions and revenue expectations. This provides additional revenue from digital subscriptions and a
higher value proposition for our digital advertising customers.

NZME also continues to make significant progress with its digital real estate platform, OneRoof. OneRoof
continued listings and audience growth and achieved meaningful revenue growth to $1.3 million in the six
months ended 30 June 2019.

Total Revenue was $181.1 million for the six months ended 30 June 2019, a decline of 4% compared to
the previous corresponding period. Advertising revenue declined 5% to $130.7 million for the six months
ended 30 June 2019. We are pleased to report that radio revenue was in growth in the half year, and even
more pleasing are the signs of continued momentum for growth in the second half of the year. However,
ongoing pressure on print and digital advertising and a decline in print circulation revenue impacted the
results in the period.

NZME achieved an operating cost (excluding digital classified costs) reduction of $4.8 million (3%) through
a continued focus on cost savings, increased efficiencies and a reduction in print volumes.

Operating EBITDA decreased 16% in the period to $19.4 million. Operating net profit after tax (NPAT) for
the six months ended 30 June 2019 was $4.7 million, a decrease of 15%, while statutory NPAT for the six
months ended 30 June 2019 was $1.0 million ($3.7 million for the six months ended 30 June 2018).

We have made good progress on our capital management programme and have reduced net debt by $8.1
million in the six months to $90.2 million as at 30 June 2019. However, due to the decrease in EBITDA in
the period, our leverage ratio has remained at 1.8 times rolling 12 months EBITDA.

In line with our Capital Management Policy, the Board have elected not to pay a dividend for the half year
ended 30 June 2019 and will continue to focus on the reduction in net debt and leverage ratio with the aim
to return to paying dividends when trading and investment conditions permit.

$m
6 months
30 June 2019
6 months
30 June 2018
% change
Print 96.6 103.6 (7%)
Radio 53.5 53.4 0.2%
Digital 28.2 29.1 (3%)
Total Segment Revenue 178.3 186.1 (4%)
Other revenue 2.8 3.3 (15%)
Total Operating Revenue 181.1 189.4 (4%)

Print

Print revenue was $96.6 million in the six months ended 30 June 2019, a decline of 7% compared to
previous corresponding period. Print remains NZME’s largest revenue segment, representing 53% of Total
Revenue, including print advertising revenue, print circulation revenue and other print related revenue
including third-party printing.

3

Print advertising revenue of $51.1 million was 8% lower than previous corresponding period, but better than
the market which experienced a 14% decline in total print advertising spend. NZME increased its print
advertising market share from 43.6% for the 6 months to June 2018 to 46.7% for the 6 months to June
2019
5
. Total market agency newspaper advertising bookings were down 7.6%
6
in the six months to June
2019. However, it is pleasing that these bookings were up 16.7% in the month of June and showing a
positive trend.

Circulation revenue of $38.5 million was 5% lower than previous corresponding period. While volumes
decreased 8%, this was partially offset by an improvement in yield. Retention of print subscriptions
improved in the second quarter, supported by subscribers having the added benefit of access to the NZ
Herald Premium offering.

Other Print revenue, relating to printing and distribution services provided to external parties, decreased
9% to $7.0 million due to lower third-party circulation volumes.

Direct Print costs decreased 5% to $34.2 million compared to the previous corresponding period, reflecting
lower print volumes down 10% and the ongoing benefits from plant upgrades, offset by wage increases
and the higher cost of newsprint and freight.

Print contribution was $62.4 million for the six months ended 30 June 2019, a decline of 8% compared to
the previous corresponding period.

NZME’s print offerings (including The New Zealand Herald, regional and community newspapers) continue
to have strong average issue readership (AIR) with 1.3 million
7
readers each week, while The New Zealand
Herald AIR increased to 477,000 as at March 2019, an increase of 5.3% from December 2018. The Herald
on Sunday remains the widest read Sunday newspaper in New Zealand with 61% market share. The NZ
Herald weekly brand audience (including print and www.nzherald.co.nz) grew 3.0% to 1.7 million
7
.

Radio

Radio revenue was $53.5 million in the six months ended 30 June 2019, a small, but pleasing, increase of
0.2% compared to previous corresponding period.

Radio advertising in the period reflected the competitive radio advertising environment. Total market radio
advertising increased 2.1%
8
in the six months to June 2019, while agency advertising bookings were up
4.6%
6
in the six months to June 2019. NZME maintained its share of radio revenue as a percentage of total
market radio advertising spend at 39.0%
8
for the six months ended 30 June 2019.

Direct Radio costs increased 0.6% compared to the previous corresponding period to $16.1 million. Radio
contribution was $37.4 million for the six months ended 30 June 2019.

NZME’s Radio audience was stable at 2.0 million listeners
9
each week while our total market share
increased to 37.7%
10
as at June 2019, up from 34.9% as at December 2018 presenting real value
proposition opportunity. Newstalk ZB remains the number one radio station in New Zealand with an
audience of 560,000, while ZM was awarded the number one radio station for 18-34 year olds at the NZ
Radio Awards in May 2019 with an audience of 458,000. Registered users on iHeart Radio grew by 14%
over the past year to more than 886,000 listeners
11
with 3.8 million listening hours
12
increasing 12% over
the past year.

5 PwC NPA Quarterly performance comparison report, Q2 2019
6 Standard Media Index (SMI) NZ June 2019 Data Release
7 Nielsen CMI Fused Q2 18 - Q1 19, May 2019
8 PwC Monthly radio advertising benchmark report, June 2019
9 GfK Radio Audience Measurement, Commercial Stations, NZME & Partners. Cumulative Audience S2 2019, People 10+, Monday-Sunday
12mn-12mn
10 GfK Radio Audience Measurement, Commercial Stations, NZME & Partners, major markets trended to S2 2019, Monday-Sunday 12mn-
12mn, station share % AP 18-54
11 iHeartMedia; Adobe Analytics, June 2019
12 AdsWhizz and StreamGuys, June 2019

4


Radio remains one of NZME’s three key strategic priorities for growth and NZME remains focussed on
delivering radio revenue growth through building audience across strong brands and digital platforms; and
enhancing radio sales skills and execution.

Digital

Digital revenue was $28.2 million in the six months ended 30 June 2019. This channel has experienced a
slow-down in this half after very strong growth in both 2017 and 2018 financial years.

Digital advertising revenue was $22.0 million, down 8% compared to the previous corresponding period.
This slowdown is attributable to the contraction in the overall digital advertising market. Total market general
display advertising spend decreased 7.8%
13
in the quarter ending March 2019, while agency digital display
advertising market decreased 3.7%
14
in the six months to June 2019. However, we are pleased to see the
digital advertising market showing signs of recovery and growth in the start of the second half.

This decline in digital advertising revenue was partially offset by the growth in two new revenue streams –
digital classifieds (predominately OneRoof) and subscriptions to NZ Herald Premium.

NZME operate three digital classified channels - OneRoof (real estate), DRIVEN (autos) and YUDU (jobs).
DRIVEN and YUDU continue to show potential, but our priority remains on OneRoof, which has greater
revenue opportunity in the near term.

OneRoof continues to go from strength to strength with $1.3 million revenue in the six months to June 2019.
The number of residential for sale listings has increased to approximately 68%
15
of New Zealand residential
for sale listings and 89%
17
of Greater Auckland residential for sale listings. OneRoof’s average weekly
unique browsers have increased 33% from December 2018 to 297,000 in June 2019, and over 100,000
people have downloaded the OneRoof mobile app.

On 30 April 2019 we launched the NZ Herald Premium digital platform. The number of subscribers is ahead
of expectations and we are excited about the future of this platform.

Other e-Commerce revenue was $4.6 million in the period compared to $5.0 million in the prior year, with
the decline offset by cost reductions.

Direct digital costs (excluding digital classified costs) decreased 14% to $4.3 million, while digital classified
costs increased 9% to $3.6 million, reflecting the acceleration of OneRoof proposition.

We will continue to develop and grow our digital offerings, including OneRoof and NZ Herald Premium
subscriptions.

Costs

Operating costs (excluding digital classified costs) decreased $4.8 million (3%) in the period to $158.1
million, due to cost savings and efficiencies, lower print volumes and reduced headcount.

Exceptional items were $4.3 million in the six months ended 30 June 2019 compared to $2.5 million in the
previous corresponding period. Exceptional items in the period include redundancies due to restructuring
to achieve cost efficiencies and consolidation across the business, disposal costs and historical holiday pay
adjustments.



13 IAB digital advertising revenue – General Display, IAB NZ Digital advertising revenue report, Q1 2019
14 Standard Media Index (SMI) NZ June 2019 Data Release
15 OneRoof’s listings as a percentage of residential for sale listings on Trade Me

5

NZ IFRS16
NZME adopted NZ IFRS16 (Leases) on 1 January 2019. NZ IFRS16 requires most leases to be recognised
as a lease liability on the Balance Sheet with a corresponding Right-of-use asset. In the Income Statement,
operating lease cost is reclassified to interest expense and depreciation.
The impact of NZ IFRS16 reduces operating costs by $8.2 million from $161.7 million to $153.5 million
therefore increasing Operating EBITDA from $19.4 million to $27.6 million (excluding exceptional items)
due to operating lease expenses now accounted for as depreciation and interest on leased assets.
The corresponding adjustment increases depreciation by $6.4 million and interest expense by $2.5 million,
decreases tax by $0.2 million, therefore reducing Operating NPAT (excluding exceptional items) from $4.7
million to $4.2 million. NPAT is negatively impacted by higher interest costs in a lease’s earlier years, offset
by a positive impact in later years.

Depreciation and interest expenses
Excluding the impact of NZ IFRS16, depreciation and amortisation decreased from $13.1 million in the prior
period to $10.6 million in the six months ended 30 June 2019. The impact of NZ IFRS16 increased
depreciation by $6.4 million due to depreciation on leased assets, resulting in reported depreciation of $17.0
million compared to $13.1 million in the previous corresponding period.

Net interest expense increased from $2.1 million in the prior period to $2.4 million in the six months ended
30 June 2019 due to renegotiated bank facilities in the year. In addition, the impact of NZ IFRS16 increased
interest expense by $2.5 million due to interest charge on leased assets, resulting in reported net interest
expense of $4.9 million compared to $2.1 million in the previous corresponding period.

Cash flow

Cash flow from operations was $18.3 million in the six months to June 2019 compared to $3.1 million in the
six months to June 2018 due to a significant tax payment in the first half of 2018, a positive movement in
working capital and the reclassification of lease principal payments to cash flow from investing as part of
the implementation of NZ IFRS16. These positive movements in cash flow from operations were offset by
higher interest paid and higher exceptional items.

Capital expenditure was $4.5 million in the six months to June 2019 compared to $7.1 million in the six
months to June 2018 in line with expectations and is expected to be around $12 million for the 2019 financial
year.

CAPITAL MANAGEMENT

Our capital management objective is to reduce gearing while maintaining investment in our growth
opportunities. The key target of this policy is to reduce net debt by $10-15 million per annum until such time
as the leverage ratio is within our target range of 1.0 – 1.5 times rolling 12-month EBITDA.

We are pleased to report that we have made good progress and have reduced net debt by $8.1 million in
the six months to $90.2 million as at 30 June 2019. However, due to the decrease in EBITDA in the period,
our leverage ratio has remained at 1.8 times rolling 12-month EBITDA.

The Board have elected not to pay a dividend for the half year ended 30 June 2019 and will continue to
focus on the reduction in net debt and leverage ratio with the aim to return to paying dividends where trading
and investment conditions permit.

6

THE BOARD

We were pleased to have Sussan Turner elected by shareholders as an Independent Director at the NZME
Annual Meeting in June 2019 (following her appointment to the Board in July 2018). The Board comprises
five directors, 60% female, with a strong mix of strategic, financial, media and journalistic skills and
experience to support the development and implementation of our strategy and maintain high standards of
corporate governance.

OUR PURPOSE

Earlier this year we introduced our NZME Purpose – Keeping Kiwis in the know. NZME is built on a
legacy of award-winning journalism and broadcasting to deliver news, entertainment and information to
Kiwis every day.

Kiwis love being informed and keeping New Zealanders in the know is what NZME does best. We believe
it captures why NZME’s existence matters. It is why we are important to the people we serve and why our
people dedicate their precious time, energy and passion to our company.

OUR SUSTAINABILITY COMMITMENT

We are pleased to provide an update on our journey in the development of Our Sustainability Commitment.

In keeping with NZME’s Purpose of Keeping Kiwis in the know, our sustainability commitment focuses on
protecting the craft of journalism and broadcasting and continually amplifying our ability to create positive
changes in our society.

We have developed our framework with the overarching objective of ensuring we grow a business focused
on our Communities, our People and our Environment.

Through responsible reporting and sharing our platforms, we connect and empower our communities. By
fostering innovation, engagement and inclusion in our workplaces we support our people to thrive. By taking
our environmental responsibilities seriously we support our commitment to care for the world around us.

We have adopted the UN Sustainable Development Goals (UN SDGs) framework and have aligned our
identified issues which are most important to NZME and our stakeholders, with the UN SDGs we believe
are most relevant to our business, our people and our communities.

We are pleased to release Our Sustainability Commitment framework, which can be found on our website:
https://www.nzme.co.nz/investor-relations/

In 2019 we will continue our journey and we remain committed to have initial measurement undertaken in
2019 and reporting against the framework commencing in 2020.

2019 STRATEGIC PRIORITIES

In 2019, NZME is focussed on three strategic priorities:

1. Leading the future of news and journalism in New Zealand
2. Increasing radio capability and performance
3. Creating New Zealand’s leading real estate platform

Leading the future of news and journalism in New Zealand

NZ Herald Premium gives subscribers access to New Zealand’s finest journalism and commentary
including exclusive, in-depth and agenda-setting articles, investigative reports, columns, and analysis
across business, politics, news, sport, lifestyle and entertainment.

7

The launch of NZ Herald Premium has been a huge success, and we would like to acknowledge our
editorial, technology and marketing teams who undertook a significant amount of preparation, development
and hard work to launch NZ Herald Premium and continue to do so to maintain this premium offering for
our customers.

We continue to find ways to improve our capability and content, to develop enhanced membership
optionality, propensity modelling and focus on continued momentum to increase the number of subscribers
and engagement levels.

Increase radio capability and performance

The New Zealand Radio market is highly competitive. NZME is the second largest radio operator in New
Zealand, with a weekly radio audience of 2.0 million
16
. So far in 2019 we have invested in new talent and
shows, particularly on Newstalk ZB and The Hits. Our digital radio platform, iHeart Radio, is well positioned
to take advantage of the growing digital radio market.

In the 2019 financial year, NZME will continue to enhance radio sales skills to support integrated selling
across each of our radio brands and other media channels. We will continue to develop digital radio and
revenue growth through leveraging iHeart Radio capability and will develop new shows to further build radio
audience and market share.

We were pleased with the performance of Radio in the first half of the year and this positive momentum
continues in the second half.

Creating New Zealand’s leading real estate platform

Our third key strategic priority, OneRoof, is also proving to be very successful in our digital capability offering
and delivered significant revenue growth momentum in the period to $1.3 million.

OneRoof has enjoyed strong audience growth since its launch in March 2018, supported by growth in
listings and an integrated content and advertising strategy. Audience growth has increased each quarter,
with average weekly unique browsers increasing to 297,000 for the month of June 2019, up 33% from
December 2018.

In the 2019 financial year, the focus is on securing further market listings, enhanced content
personalisation, continued improvement of audience engagement, providing leading property market
commentary and insights, and growing advertising revenue across native content.

OUTLOOK

When we review the past six months against our three strategic priorities, we are pleased with the
achievement of significant milestones, including the launch of NZ Herald Premium, returning radio revenue
to growth, and delivering significant revenue growth momentum in OneRoof.

We are encouraged by a positive start to the second half of the year.

The advertising market shows some signs of improvement and our forward bookings in the third quarter
are up 6% compared to the same period last year.

However, we remain cautious of the potential impact of the softening economy and weaker business
confidence.

From a capital management perspective, we are also on target to reduce net debt further in the second half
in line with our Capital Management Policy.


16 GfK Radio Audience Measurement, Commercial Stations, NZME & Partners. Cumulative Audience S2 2019, People 10+, Monday-Sunday 12mn-
12mn.

8


NZME is a leading New Zealand integrated media business that provides advertisers with a unique multi-
media offering, through which they are able to engage with our growing audience. While the operating
environment remains challenging, there are some signs of positive growth and we continue to make good
progress on executing our strategy to grow shareholder value.

All 2019 half year results materials can be found at:
https://www.nzme.co.nz/investor-relations/

https://www.nzx.com/companies/NZM/announcements


ENDS

For further information:

Michael Boggs
Chief Executive Officer
T: +64 29 9698899
Email: Michael.Boggs@nzme.co.nz

Julia Belk
Investor Relations Manager
T: +64 21 2408997
Email: julia.belk@nzme.co.nz

Investor and analyst webcast:

NZME will hold a webcast for investors and analysts at 10:00 a.m. NZDT on Tuesday 27 August 2019, to
discuss the 2019 half year results.

Please CLICK HERE to register for the webcast.

Telephone details will be emailed to you upon registration, but please note only attendees on the webcast
will be able to ask a question.

This will be available on replay recording one hour after the call at:
https://www.nzme.co.nz/investor-relations/webcasts/

---

27 August 2019
2019 HALF YEAR RESULTS
Six Months to 30 June 2019

DISCLAIMER
The information in this
presentation is of a general
nature and does not
constitute financial product
advice, investment advice or
any recommendation.
Nothing in this presentation
constitutes legal, financial,
tax or other advice. This
presentation constitutes
summary information only,
and you should not rely on it
in isolation from the full
detail set out in NZME’s
Consolidated Interim
Financial Statements for the
six months ended 30 June
2019.
This presentation may contain projections or
forward-looking statements regarding a variety
of items. Such projections or forward-looking
statements are based on current expectations,
estimates and assumptions and are subject to
a number of risks and uncertainties. There is
no assurance that results contemplated in any
projections or forward looking statements in
this presentation will be realised. Actual results
may differ materially from those projected in
this presentation. No person is under any
obligation to update this presentation at any
time after its release to you or to provide you
with further information about NZME Limited.
The Group adopted NZ IFRS16 Leases on 1
January 2019 without restating the H1 18
comparatives. Operating results as stated
throughout this presentation refers to results
prior to adjustments for the adoption of NZ
IFRS16 and prior to exceptional items.Please
refer to note 2.3.2 and note 2.3.3 of the
Consolidated Interim Financial Statements for
the period ended 30 June 2019 and slide 28 of
this presentation for a detailed reconciliation.
Priorperiod results have been adjusted to
include revenue from contracts with customers
in line with NZ IFRS15 reporting which was
adopted on 1 January 2018.Refer to slide 29
of this presentation for a detailed reconciliation.
While reasonable care has been taken in
compiling this presentation, none of NZME
Limited nor its subsidiaries, directors,
employees, agents or advisers (to the
maximum extent permitted by law) give any
warranty or representation (express or implied)
as to the accuracy, completeness or reliability
of the information contained in it nor take any
responsibility for it. The information in this
presentation has not been, and will not be,
independently verified or audited.
2

AGENDA
04 2019 half year results summary and highlights
062019 Strategic priorities scorecard
07 Market update
10 Channel results
15 2019 half year financial results in detail
20 Strategic Priorities
24 Our Sustainability Commitment
25 Outlook
26 Q&A
27 Supplementary information
3

NZME 2019 HALF YEAR RESULTS
SIX MONTHS TO 30 JUNE 2019
RESULTS SUMMARY
Solid result given
market headwinds
Strong growth
in digital initiatives
1.Operating results are presented excluding the impact of NZ IFRS16 and exceptional items to allow for a like for like comparison between H1 2018 and H1 2019. Please refer to
note 2.3.2 and note 2.3.3 of the Consolidated Interim Financial Statements for the period ended 30 June 2019 and slide 28 of this presentation for a detailed reconciliation.
2.Percentage changes are calculated on the basis of rounded results.
3.2018 half year comparative numbers have been adjusted to include NZ IFRS15 reporting which was adopted on 1 January 2018, and other prior period reclassification
adjustments.Refer to slide 29 of this presentation for a detailed reconciliation.
4
Total Revenue
$181.1m
H1 18 $189.4m4%
Operating EBITDA
1
$19.4m
H1 18 $23.2m 16%
Operating NPAT
1
$4.7m
H1 18 $5.5m 15%
Statutory NPAT
$1.0m
H1 18 $3.7m73%
EBITDA
$23.3m
H1 18 $20.7m 13%
Operating six months
earnings per share
1
2.4cps
H1 18 2.8cps 14%

HIGHLIGHTS OF THE HALF
1.Nielsen CMI Fused Q2 18 -Q1 19, May 2019, People 15+
2.GfK Radio Audience Measurement, Commercial Stations, NZME and Partners. Cumulative Audience S2 2019, People 10+, Monday-Sunday 12mn-12mn
3.GfK Radio Audience Measurement, Commercial Stations, NZME and Partners in major markets trended to S2 2019, Monday-Sunday 12mn-12mn, station share % AP 18-54.
4.Excluding impact of NZ IFRS16, non-recurring exceptional items and digital classified costs
5
•Successful launch of NZ Herald Premium –more than 15,000 paid
subscribers, exceeding subscription and revenue expectations
•NZ Herald daily brand audience up 4.5% to 1,098,000, average issue
readership up 3.9% to 477,000
1
•Radio revenue in growth for the half and showing positive momentum
•Radio talent changes made as part of radio growth strategy
•Increased radio audience market share to 37.7% in June 2019, up
from 34.9% in December 2018
3
•OneRoof continued listings and audience growth with revenue growing
to $1.3 million
•3.0% reduction in the underlying cost base
4
•Net debt reduced by $8.1 million
DIGITAL
2.4 million
Usersper Month
1
PRINT
1.3 million
WeeklyReaders
1
RADIO
2.0 million
WeeklyListeners
2
TOTAL MONTHLY AUDIENCE
1
3.3 million

2019 STRATEGIC PRIORITIES
ACHIEVEMENT SCORECARD
Leadingthe futureof news and
journalismin New Zealand
Increasingradio capability
and performance
Creating New Zealand’s leading
real estate platform
6
Key Success MetricAchievement to Date
Paid content launch Q2
2019
NZ Herald Premium
launched 30 April 2019
Targeting 10,000 digital
subscribers within the first
year
Achieved in six weeks
Increased premium
content and digital
audience engagement
NZ Herald Premium
subscriberis almost three
times more engaged than
a non-subscriber
1
Improved Print subscriber
retention
Early indications show
improving trend
Key Success MetricAchievement to Date
Radio revenue in growth
Radio revenue in growth
for the half and showing
positive momentum
Improve audience share
in the key 18-54
demographic
Market share increased to
37.7%
2
at June 2019 up
from 34.9%
2
at Dec 2018.
Continue to grow iHeart
registered users and
streaming hours
886,000 registered users
3
up 14%
3.8 million listening hours
4
up 12%
Key Success MetricAchievement to Date
Growth in listings as a %
of market
5
68% of NZ residential
listings
89% of Greater Auckland
residential listings
Improved audience
engagement
297,000 unique browsers
each week, up 33% from
Dec 2018
6
Meaningful revenue
growth
OneRoof revenue $1.3m
in H1 2019 –up from
$0.7m in the full year
2018
1.Based on Average Session Duration
2.GfK Radio Audience Measurement, Commercial Stations, NZME and Partners in major markets trended to S2 2019, Monday-Sunday 12mn-12mn,station share % AP 18-54
3.iHeartMedia; Adobe Analytics, June 2019
4.AdsWhizzand StreamGuys, June 2019 (listening hours per month)
5.OneRoof’slistings as a percentage of residential for sale listings on Trade Me
6.Averageweekly Unique Browsers. Nielsen Market Intelligence Domestic Traffic Jan 18 –Jul 19.

7
Market
Update

AGENCY ADVERTISING
MARKET TRENDS
1.Standard Media Index (SMI) NZ June 2019 Data Release
2.Excludes Newspaper Magazines
8
•After a challenging agency advertising market in
the first four months of the period, the agency
advertising market grew in the months of May
and June 2019.
•Total agency advertising growth of 8.1%
1
in the
month of June, includes:
oNewspapers
2
–down 7.6% YTD, but up
16.7% in June
oDigital Display –down 3.7% YTD, but up
22.3% in June
oRadio –up 4.6% YTD and up 4.6% in June

NZME PERFORMANCE
AGAINST THE MARKET
FOR THE SIX MONTHS
TO 30 JUNE 2019
Total segment revenue
$178.3m 4%
H1 18 $186.1m
9
DIGITAL –Q1: 3 months to March 2019
1
NZME General Display digital revenue(8%)
Total General Display market(8%)
RADIO -6 months to 30 June 2019
2
NZME radio advertising revenue+ 2%
Total market+ 2%
PRINT -6 months to 30 June 2019
3
NZME print advertising revenue(8%)
Total market(14%)
1.IAB digital advertising revenue –General Display, IAB NZ Digital advertising revenue report, Q1 2019
2.PwC Radio Performance Comparison Report, Q2 2019
3.PwC NPA Quarterly Performance Comparison Report, Q2 2019

10
Channel
Results

11
•NZME's newspapers -including the NZ Herald -continue to perform well relative to
market trends.
•Print advertising revenue declined 8%, consistent with prior year but better than the
market which saw total publishing advertising spend down 14%
1
.
•NZME increased market share of print advertising revenue from 43.6% for the 6
months to June 2018 to 46.7%
1
for the 6 months to June 2019.
•Circulation revenue reduced by 5%. While volumes decreased 8%, this was
partially offset by an improvement in yield.
•Retention of printsubscriptions improved in the second quarter, supported by
subscribers having the added benefit of access to the NZ Herald Premium
offering.
•Cost savings in direct print costs due to lower volumes (total page volumes down
10% compared to H1 2018), cost efficiencies and benefits of plant upgrade.
$MH1 2019H1 2018% Change
Advertising revenue51.155.5(8%)
Circulation Revenue38.540.4(5%)
Other Revenue7.07.7(9%)
Total Print Revenue96.6103.6(7%)
Direct Print Costs(34.2)(35.9)(5%)
Total Print Contribution62.467.7(8%)
1.PwC NPA Quarterly Performance Comparison Report, Q2 2019
PRINT
FOR THE SIX MONTHS
ENDED 30 JUNE 2019

OUTSTANDING READERSHIP
AND AUDIENCE RESULTS
12
•NZME daily newspapers reach
1,023,000
1,2
Kiwis per week –more
than the competitors combined.
•The NZ Herald average issue
readership is at a four year high at
477,000
2
, with the flagshipWeekend
Herald now read by540,000 people
each week.
•All magazines
3
have increased in
readership year on year –NZ
Herald's Travel magazine is now the
best-read newspaper magazine in
New Zealand, with 323,000 readers.
•Subscriber numbers decreased in
the period, but this decrease has
been partially offset by an
improvement in yield.
1.NZ Herald, Bay of Plenty Times, Rotorua Daily Post, Northern Advocate, Whanganui Chronicle or Hawke’s Bay Today
2.Nielsen CMI Fused Q2 18 -Q1 19, May 2019, People 15+
3.Magazines include Canvas, TimeOut, Viva, Travel, Spy, Sunday Travel.

13
•Radio revenue market has returned to growth and NZME has maintained market
share of 39.0%
1
for the 6 months to June 2019.
•Increased radio audience market share to 37.7%
2
as at June 2019, up from 34.9%
as at Dec 2018 presenting real value opportunity.
•Investment in new talent has resulted in:
•Newstalk ZB extending its lead as New Zealand's number one commercial
radio network
1
•Station of the Year, ZM, is now the most popular music station for 18-34
year olds.
•iHeart–over 886,000 registered users
3
, up 14% year on year and 3.8 million
listening hours
4
up 12% year on year.
$MH1 2019H1 2018% Change
Total Radio Revenue53.553.40.2%
Direct Radio Costs(16.1)(16.0)0.6%
Total Radio Contribution37.437.4-
1.PwC Radio Performance Comparison Report, Q2 2019
2.GfK Radio Audience Measurement, Commercial Stations, NZME and Partners in major markets trended
to S2 2019, Monday-Sunday 12mn-12mn, station share % AP 18-54.
3.iHeartMedia; Adobe Analytics, June 2019
4.AdsWhizzand StreamGuys, June 2019
RADIO
FOR THE SIX MONTHS
ENDED 30 JUNE 2019

14
•Digital advertising revenue reduced 8% in line with the challenging General Digital
Display market
2
.
•Total market agency digital display advertising revenue was down 3.7%
3
in the 6
months to June 2019, with early signs of recovery and growth in the second half.
•NZ Herald Premium and OneRoof are showing strong growth.Other digital
initiatives continue to show potential.
•More than 30% of digital premium subscribers have an annual subscription.
•e-Commerce revenue declines were offset by cost reductions.
•Increased direct classified costs reflect the acceleration of OneRoof proposition.
$MH1 2019H1 2018% Change
Advertising revenue
22.023.9(8%)
Classifieds revenue
1.40.2n/a
Subscription revenue
0.2
1
-n/a
e-Commerce revenue
4.65.0(8%)
Total Digital Revenue28.229.1(3%)
Direct Digital Costs(4.3)(5.0)(14%)
Direct Classified Costs(3.6)(3.3)9%
Digital Contribution20.320.8(2%)
1.Digital subscription revenue for 2 months since the launch of NZ Herald Premium from 30 April 2019
2.Source: Q1 2019 IAB New Zealand Digital Advertising Report
3.Standard Media Index (SMI) NZ June 2019 Data Release
DIGITAL
FOR THE SIX MONTHS
ENDED 30 JUNE 2019

16
•Segment Revenue declined 4% in the half
but a pleasing result in radio with digital
showing signs of future growth in NZ
Herald Premium and OneRoof.
•Other revenue decreased primarily due to
reduced number of events in the period.
•Continued cost focus resulted in $4.8
million (3%) cost savings achieved in the
half.
•Higher digital classified costs with the
continued development of OneRoof.
$M
Six months
30 June 2019
1
Six months
30 June 2018
% change
Print, radio and digital revenue178.3186.1(4%)
Other revenue2.83.3(15%)
Total Revenue & Other Income181.1189.4(4%)
Costs (excl. digital classifieds)(158.1)(162.9)(3%)
Digital classifieds(3.6)(3.3)9%
EBITDA19.423.2(16%)
Depreciation and amortisation(10.6)(13.1)(19%)
EBIT8.810.1(13%)
Net interest expense(2.4)(2.1)14%
NPBT6.48.0(20%)
Tax(1.7)(2.5)(32%)
NPAT4.75.5(15%)
1.Operating results are presented excluding the impact of NZ IFRS16 and exceptional items to allow for a
like for like comparison between H1 2018 and H1 2019. Please refer to note 2.3.2 and note 2.3.3 of the
Consolidated Interim Financial Statements for the period ended 30 June 2019 and slide 28 of this
presentation for a detailed reconciliation.
OPERATING RESULTS
FOR THE SIX MONTHS
ENDED 30 JUNE 2019

•NZ IFRS16 requires most leases to be
recognised as a lease liability on the
Balance Sheet with a corresponding
“Right-of-use” asset.
•In the Income Statement, operating lease
cost is reclassified to Interest Expense and
Depreciation.
•The adoption of NZ IFRS16 by NZME on
1 January 2019 results in the following
changes:
•Total Assets increase, offset by an
increase in Total Liabilities;
•EBITDA increases as lease costs are
reclassified as interest and depreciation;
and
•NPAT is negatively impacted by higher
interest costs in a lease’s earlier years
offset by a positive impact in later years.
17
$M
H1 2019 Operating
Results
1
NZIFRS16
Adjustment
H1 2019
including
NZ IFRS16
2
Income Statement:
Revenue181.1-181.1
Costs(161.7)8.2(153.5)
EBITDA19.48.227.6
Depreciation and amortisation(10.6)(6.4)(17.0)
Net interest expense(2.4)(2.5)(4.9)
NPBT6.4(0.7)5.7
Tax(1.7)0.2(1.5)
NPAT4.7(0.5)4.2
Balance Sheet:
Increase in Right-of-use assets74.4
Increase in Lease liabilities80.8
Decrease in Equity6.4
1.Operating results excludes the impact of NZ IFRS16 and exceptional items
2.The H1 2019 including NZ IFRS16 amounts exclude exceptional items to show only the impact of NZ
IFRS16.Please refer to note 2.3.2 and note 2.3.3 of the Consolidated Interim Financial Statements for
the period ended 30 June 2019 and slide 28 of this presentation for a detailed reconciliation.
IMPACT OF NEW
LEASES STANDARD
–NZ IFRS16

18
•Cost initiatives resulted in reduced people
costs due to lower headcount.
•Printing and distribution cost decreased
due to reduced print volumes and
increased efficiencies.
•Property expenses increased due to higher
electricity, repairs and maintenance
expenses and increased external
transmission facility expenses.
•Digitalclassified costs increased as a
result of further development of OneRoof.
•Redundancies increased due to
restructuring to achieve cost efficiencies.
•Other exceptional items include disposal
costs and historical holiday pay
adjustments.
1.Operating results are presented excluding the impact of NZ IFRS16 and exceptional items to allow for a like for
like comparison between H1 2018 and H1 2019. Please refer to note 2.3.2 and note 2.3.3 of the Consolidated
Interim Financial Statements for the period ended 30 June 2019 and slide 28 of this presentation for a detailed
reconciliation.
$M
Six months
30 June 2019
1
Six months
30 June 2018
% change
People costs & contributors
75.779.3(5%)
Print & distribution costs
29.631.2(5%)
Agency commission & marketing
20.120.1-
Property
11.110.38%
Content
7.37.6(4%)
IT & communications
5.76.1(7%)
Other
8.68.34%
Total Costs excl. Digital Classified
158.1162.9(3%)
Digital Classifieds
3.63.39%
Total Costs
161.7166.2(3%)
Exceptional Items:
Redundancies3.22.1
Other exceptional items1.10.4
Exceptional items4.32.5
COSTS
FOR THE SIX MONTHS
ENDED 30 JUNE 2019

19
•Capital management policy objective to
reduce debt while maintaining investment
in growth opportunities across the
business.
•Net debt reduced by $8.1 million to $90.2
million in the six months to 30 June 2019.
•Due to the decrease in EBITDA in the
period, the leverage ratio has remained at
1.8 times rolling 12-month EBITDA.
•Capital expenditure decreased to $4.5
million in the six months ended 30 June
2019 (from $7.1m in the six months ended
30 June 2018).
•NZME is targeting a net debt reduction of
$10 -$15 million per annum to bring the
leverage ratio to within the target range of
1.0 to 1.5 times rolling 12-month EBITDA.
$M30 June 201931 Dec 2018
Net working capital excluding cash ($m)8.89.4
Net Debt($m)
90.298.3
Net interest cover
10.812.0
Net debt to EBITDA
1.81.8
CAPITAL
MANAGEMENT

Leadingthe futureof news and
journalismin New Zealand
Increasingradio capability
and performance
Creating New Zealand’s leading
real estate platform
20
2019 STRATEGIC PRIORITIES
FOCUSED ON GROWTH

21
NZ HERALD
PREMIUM
•Successful launch of NZ Herald Premium
in April 2019.
•Developed Freemium Paywall in
partnership with Washington Post Arc
platform.
•40,000 total subscribers including more
than 15,000 new paid subscribers and
24,000 print subscribers who have
activated access to NZ Herald Premium.
•Exceeding subscription and revenue
expectations.
•More than 30% of digital premium
subscribers have an annual subscription.
Strategic Priority #1
Leading the future of news and journalism in New Zealand
CONTENTCAPABILITYAUDIENCE
Delivered
in 2019
•Delivering first class NZ
premium journalism.
•Access to a selection of
stories from New York Times,
Financial Times, Times of
London and Harvard Business
Review.
•Joining our existing providers
of The Washington Post, The
Telegraph and South China
Morning Post.
•Washington Post Arc
Subscriptions product
suite and propensity
modelling data software.
•Marketing automation
tools to facilitate
customer acquisition and
retention strategies and
content personalisation.
•Achieved annual target
of 10,000 new paid
subscribers in six weeks.
•Subscribers are highly
engaged -spending
~three times longer on
nzherald.co.nzthan non-
subscribers.
•Subscriber conversion
driven by business,
politics and sport content.
Focus
•Delivering premium content
around significant upcoming
news events including the
Rugby World Cup and local
body elections.
•Investigating new content
offerings.
•Continued development
will focus on enhanced
membership optionality,
new self-service
authentication tools and
propensity modelling.
•Continued momentum to
increase the number of
subscribers and
engagement levels.

CONTENTCAPABILITYAUDIENCE
Delivered
in 2019
•Investment in new
talent and shows
on Newstalk
ZBand The Hits.
•iHeartradio now
the largest podcast
library in New
Zealand.
•Improved sales
capability.
•Technology
interface for
inventory
management and
cross-channel
bundling.
•New iHeartradio
app delivered
enhanced
content and
communication
options.
•Increased radio
audience market
share to 37.7%
2
as
at June 2019, up
from 34.9% as at
Dec 2018
presenting real
value opportunity.
•Record iHeart
audience –more
than 886,000
registered users
and 3.8 million
listening hours.
Focus
•Embed new radio
shows.
•Continued podcast
trials, development
and monetisation.
•Continued
development of
digital radio
•New advertising
products for iHeart
radio including an
innovative audio
proposition to
launch in Q3.
•Continued focus on
key 18-54 year
oldaudience
segment.
•Promote radio
brands across each
other and other
media channels.
RADIO
22
Strategic Priority #2
Increasing radio capability and performance
1.GfK Radio Audience Measurement, Commercial Stations, NZME and Partners in major markets trended to S2 2019, Monday-Sunday 12mn-12mn, Cume, People 10+
2.GfK Radio Audience Measurement, Commercial Stations, NZME and Partners in major markets trended to S2 2019, Monday-Sunday 12mn-12mn, station share % AP 18-54.
•Station of the year –ZM
•Best music breakfast show –ZM
•Best talk presenter (Breakfast or Drive)
–Mike Hosking (Newstalk ZB)
•Best Talk Presenter (Other)
–Marcus Lush (Newstalk ZB)

23
OneRoof $MH1 2019H2 2018H1 2018
Revenue1.30.70.0
Direct Costs(2.6)(2.4)(1.5)
Total OneRoof Contribution(1.3)(1.7)(1.5)
Total NZME Real Estate Revenue 16.117.016.5
OneRoof
LISTINGSAUDIENCEREVENUE
Delivered
in 2019
•~21,000‘for sale’
listings
•68% of NZ
residential listings
1
•89% of Greater
Auckland
residential listings
1
•New listings results
page and
interactive map
delivering higher
listings interactions
•Strong audience
growth supported
by integrated
content and
advertising
•297,000 average
weekly unique
browsers (June
2019), up 33% from
Dec 2018
2
•Over 100,000 App
Downloads and
growing
•Direct to site
audience over 65%
•OneRoof revenue
$1.3min H1 2019 –
up from $0.7m in
the full year 2018
•Strong vertical
performance given
difficult real estate
market
•Over 50% of
revenue from
listings upgrades
Focus
•Secure remaining
agency listings
•New Homes section
to be deployed in
Q3
•Enhanced content
personalisation
using data and AI
automation tools.
•Continued
improvement of
audience
engagement with
listings (views,
saved properties
and enquiry rates)
•Digital listings
upgrades and
bundled packages
gaining momentum
•Grow advertising
revenue across
native content,
video series,
podcast and
Quarterly Property
Reports
1.OneRoof’slistings as a percentage of residential for sale listings on Trade Me
2.Averageweekly Unique Browsers. Nielsen Market Intelligence Domestic Traffic Jan 18 –Jul 19.
Strategic Priority #3
Creating New Zealand’s leading real estate platform

24

•Encouraging start to the second half.
•Advertising market shows some signs of improvement –with
ourQ3 bookings up 6% compared to the same period last
year.
•However, we remain cautious of the potential impact of the
softening economy and weaker business confidence.
•Our focus on cost reduction continues with initiatives delivering
improvement in the cost base.
•The company is on target to reduce debt in line with our
Capital Management Policy.
25
Outlook
1.OneRoof’slistings as a percentage of residential for sale listings on Trade Me

Q&A
26

27
Supplementary
Information

28
Six months ended 30 June 2019
$MOperating results
NZ IFRS16
Adjustment
Exceptional Items
Per Financial
Statements
Segment Revenue178.3--178.3
Other revenue2.8--2.8
Total Revenue181.1--181.1
Costs(158.1)8.2(4.3)(154.2)
Digital classified costs(3.6)--(3.6)
EBITDA19.48.2(4.3)23.3
Depreciation and amortisation(10.6)(6.4)-(17.0)
EBIT8.81.8(4.3)6.3
Net interest expense(2.4)(2.5)-(4.9)
NPBT6.4(0.7)(4.3)1.4
Tax(1.7)0.21.1(0.4)
NPAT4.7(0.5)(3.2)1.0
RECONCILIATION OF OPERATING RESULTS TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019

29
Six months ended 30 June 2018
$M
Reported operating
results
NZ IFRS15
adjustment
Adjustment to prior
period1
Restated Operating
Results
Exceptional Items
Per Financial
Statements
Segment Revenue183.53.8(1.3)186.1-186.1
Other revenue2.2-1.13.3-3.3
Total Revenue185.73.8(0.2)189.4-189.4
Costs(159.4)(3.8)0.4(162.9)(2.5)(165.4)
Digital classified costs(3.1)-(0.2)(3.3)-(3.3)
EBITDA23.2--23.2(2.5)20.7
Depreciation and amortisation(13.1)--(13.1)-(13.1)
EBIT10.1--10.1(2.5)7.6
Net interest expense(2.1)--(2.1)-(2.1)
NPBT8.0--8.0(2.5)5.5
Tax(2.4)--(2.4)0.7(1.8)
NPAT5.5--5.5(1.8)3.7
1.Adjustment to prior period includes reclassification of $1.1m of events revenue out of Radio and into Other Revenue, and $0.2m reclassification between radio revenue and radio costs.
RECONCILIATION OF OPERATING RESULTS TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018

30
BALANCE SHEET
AS AT 30 JUNE 2019
$M30 June 201931 December 2018
Trade, other receivables and inventory57.060.6
Trade and other payables(50.4)(52.0)
Current tax receivable2.20.9
Net working capital8.89.4
Fixed, intangibles and other assets384.5389.6
Right of use assets (NZ IFRS16)74.4-
Net interest-bearing liabilities(90.2)(98.3)
Lease Liabilities (NZ IFRS16)(94.8)-
Deferred tax(1.0)(0.4)
Lease Liability
-(13.7)
Net Assets281.8286.6
Net interest cover
10.812.0
Net debt to EBITDA
1.81.8

31
CASHFLOW
FOR THE SIX MONTHS
ENDED 30 JUNE 2019
$M
Six months
30 June 2019
Six months
30 June 2018
Operating EBITDA
1
19.423.2
NZ IFRS16 impact on EBITDA8.2-
Non-cash transactions0.10.2
Interest paid on bank facilities(2.0)(2.0)
Interest paid on leases(2.4)-
Working capital movement1.3(3.9)
Tax paid(2.0)(11.9)
Exceptional items(4.3)(2.5)
Cash from operations18.33.1
Capital expenditure(4.5)(7.1)
Dividend paid-(11.8)
Lease liability principal repayment(5.7)-
Movement in net debt8.1(15.8)
1.Operating EBITDA is excluding impact of NZ IFRS16 and excluding exceptional items.

---

Interim Results
for the six months
ended 30 June 2019
SHAREHOLDER NEWSLETTER

NZME
H1 2019
Operational Highlights
• Successful launch of NZ Herald Premium – more than 15,000 paid subscribers,
exceeding subscription and revenue expectations
• NZ Herald daily brand audience up 4.5% to 1,098,000, average issue readership up 3.9%
to 477,000
2
• Radio advertising revenue in growth for the half and showing positive momentum
• Radio talent changes made as part of radio growth strategy
• Increased radio audience market share to 37.7% in June 2019, up from 34.9% in December 2018
3
• OneRoof continued listings and audience growth with revenue growing to $1.3 million
in the 2019 first half
• 3.0% reduction in the underlying cost base
4
• Net debt reduced by $8.1 million
Results Summary
1. Operating results are presented excluding the impact of NZ IFRS 16 and exceptional items to allow for a like for like comparison between H1 2018 and H1 2019.
Please refer to note 2.3.2 and note 2.3.3 of the Consolidated Interim Financial Statements for the period ended 30 June 2019 and slide 28 and 29 of the 2019 half
year results presentation for a detailed reconciliation. 2. Nielsen CMI Fused Q2 18 - Q1 19, May 2019 (population 10+ years). 3. GfK Radio Audience Measurement,
Commercial Stations, NZME and Partners in major markets trended to S2 2019, Monday-Sunday 12mn-12mn, station share % AP 18-54. 4. Excluding impact of NZ
IFRS16, exceptional items and digital classified costs. 5. GfK Radio Audience Measurement, Commercial Stations, NZME and Partners. Cumulative Audience S2 2019,
People 10+, Monday-Sunday 12mn-12mn.
H1 18 $3.7m 73%
STATUTORY NPAT
$1.0m
H1 18 $189.4m 4%
TOTAL REVENUE
$181.1m
Weekly Readers
PRINT
1.3
million
2
Weekly Listeners
2.0
million
5
RADIO
TOTAL MONTHLY
AUDIENCE
3.3
million
2
Users per Month
2.4
million
2
DIGITAL
H1 18 $23.2m 16%
OPER ATING EBITDA
1
$19.4m
H1 18 $20.7m 13%
EBITDA
$23.3m

LETTER FROM
THE CHAIR & CEO
27 August 2019
In 2019 we introduced our purpose for NZME –
Keeping Kiwis in the know.
New Zealand Media and Entertainment is built on a legacy of award-
winning journalism and broadcasting. We deliver news, entertainment,
and information to keep Kiwis in the know every day.
1 Previous corresponding period refers to the six months ended 30 June 2018.
2 Operating results are presented excluding the impact of NZ IFRS 16 and exceptional items to allow for a like for like comparison between H1 2018 and H1 2019.
Please refer to note 2.3.2 and note 2.3.3 of the Consolidated Interim Financial Statements for the period ended 30 June 2019 and slide 28 and 29 of the 2019
half year results presentation for a detailed reconciliation.
3 Nielsen CMI May 2019 Fused Q2 18 to Q1 19 (population 10+ years).
4 GfK Radio Audience Measurement, Commercial Stations, NZME and Partners. Cumulative Audience S2 2019, People 10+, Monday-Sunday 12mn-12mn .
5 GfK Radio Audience Measurement, Commercial Stations, NZME and Partners in major markets trended to S2 2019, Monday-Sunday 12mn-12mn,
station share % AP 18-54.
6 iHeartMedia; Adobe Analytics, June 2019.
7 AdsWhizz and StreamGuys, June 2019.
NZME is pleased to report its financial results
for the first half of 2019, which was a solid result
given the market headwinds. Digital initiatives
grew strongly with positive growth indications
for advertising revenue.
NZME has had a very exciting six months, achieving
some significant milestones in the period.
On 30 April 2019 we launched the NZ Herald
Premium digital platform and, with more than
15,000 paid subscribers, this initiative is exceeding
subscription and revenue expectations. Radio
advertising revenue was in growth for the half and
shows positive momentum. Our real estate digital
classifieds platform, OneRoof, continued listings
growth driving revenue growth in the period.
Total Revenue was $181.1 million in the six months
ended 30 June 2019, a decline of 4% compared to the
previous corresponding period1. We are pleased to
report radio revenue in growth in the period. However,
ongoing pressure on print and digital advertising and
a decline in print circulation revenues impacted the
results in the period.
Operating expenses2 decreased $4.8 million
(3%) due to a continued focus on cost savings,
efficiencies and a reduction in print volumes.
Operating EBITDA2 decreased 16% in the period
to $19.4 million.
Operating net profit after tax (NPAT)
2
for the
six months ended 30 June 2019 was $4.7 million,
a decrease of 15%, while statutory NPAT for the
six months ended 30 June 2019 was $1.0 million
($3.7 million in the six months ended 30 June 2018).
Growing audience, readership and market share
The NZME audience of 3.3 million New Zealanders
each month represents 77% of the total population.
3

NZME’s print offerings (including The New Zealand
Herald, regional and community newspapers)
continue to have strong average issue readership
with 1.3 million readers3 each week, while the NZ
Herald weekly brand audience (including print and
www.nzherald.co.nz) grew 3.0% to 1.7 million.
NZME’s Radio audience was stable at 2.0 million
listeners4 each week, while our total audience market
share increased from 34.9% as at December 2018 to
37.7 %5 as at June 2019. Newstalk ZB remains the number
one radio station in New Zealand with an audience of
560,000, while ZM was awarded the number one radio
station for 18-34 year olds at the NZ Radio Awards in
May 2019 with an audience of 458,000.
Registered users on iHeart Radio grew by 14% over
the past year to more than 886,000 listeners6 with
3.8 million listening hours7, increasing 12% over the
past year.
Our extensive online offering remains strong with
2.4 million users per month including nzherald.co.nz,
GrabOne, our radio websites, along with our new
digital classified websites OneRoof, DRIVEN and YUDU.
NZ HERALD PREMIUM
NZ Herald Premium gives subscribers access to
New Zealand’s finest journalism and commentary
including exclusive, in-depth and agenda-setting
articles, investigative reports, columns, and analysis
across business, politics, news, sport, lifestyle and
entertainment.

The launch has been a huge success and we are
delighted to report that we now have more than
15,000 paid digital subscribers and this is growing
by the day. This is a testament to the quality of the
content available both through our own journalism
and our access to international media, and recognises
the value Kiwis are placing on quality journalism.
We would like to acknowledge our editorial, technology
and marketing teams who undertook a significant
amount of preparation, development and hard work
to launch NZ Herald Premium and continue to do so
to maintain this premium offering for our customers.
ONEROOF
Our real estate digital classifieds platform, OneRoof,
is also going from strength to strength and is a
demonstration of our quality content, ability to
differentiate our product in the market and our
digital capability.
OneRoof has enjoyed strong audience growth since
its launch, supported by growth in listings and an
integrated content and advertising strategy.
Audience growth has increased each quarter, with
average weekly unique browsers increasing to
297,0008 for the month of June 2019, up 33% from
December 2018.
OneRoof saw significant revenue growth momentum
in the period to $1.3 million.
CAPITAL MANAGEMENT
Our capital management objective is to reduce
gearing while maintaining investment in growth
opportunities. The key target of this policy is to
reduce net debt by $10-15 million per annum until
such time as the leverage ratio is within our target
range of 1.0 – 1.5 times rolling 12-month EBITDA.
We are pleased to report that we have made good
progress and have reduced net debt by $8.1 million
in the six months to $90.2 million as at 30 June 2019.
However, due to the decrease in Operating EBITDA
in the period, our leverage ratio has remained at 1.8
times rolling 12-month EBITDA.
The Board have elected not to pay an interim
dividend for the half year ended 30 June 2019
and will continue to focus on the reduction in
net debt and leverage ratio with the aim to return
to paying dividends where trading and investment
conditions permit.
8 Nielsen Market Intelligence Domestic Traffic Jan 18 – Jul 19 .
OUR PURPOSE
Earlier this year we introduced our NZME Purpose –
Keeping Kiwis in the know. NZME is built on a legacy
of award-winning journalism and broadcasting to
deliver news, entertainment and information to Kiwis
every day.
Kiwis love being informed and keeping New
Zealanders in the know is what NZME does best.
We believe it captures why NZME’s existence matters.
It is why we are important to the people we serve and
why our people dedicate their precious time, energy
and passion to our company.
OUR SUSTAINABILITY COMMITMENT
We are pleased to provide an update on our journey
in the development of Our Sustainability Commitment
In keeping with NZME’s Purpose of Keeping Kiwis in
the know, our sustainability commitment focuses on
protecting the craft of journalism and broadcasting
and continually amplifying our ability to create
positive changes in our society. We have developed
our framework with the overarching objective
of ensuring we grow a business focused on our
Communities, our People and our Environment.
Through responsible reporting and sharing
our platforms, we connect and empower our
communities.
By fostering innovation, engagement and inclusion
in our workplaces we support our people to thrive.
By taking our environmental responsibilities seriously
we support our commitment to care for the world
around us.
We have adopted the UN Sustainable Development
Goals (UN SDGs) framework and have aligned our
identified issues which are most important to NZME
and our stakeholders, with the UN SDGs we believe
are most relevant to our business, our people and
our communities.
We are pleased to release Our Sustainability
Commitment framework which can be found
on our website:
https://www.nzme.co.nz/investor-relations/
In 2019 we will continue our journey and remain
committed to have initial measurement undertaken
in 2019 and reporting against the framework
commencing in 2020.

BOARD APPOINTMENTS
We were pleased to have Sussan Turner elected
by shareholders as an Independent Director at the
NZME Annual Meeting in June 2019 (following her
appointment to the Board in July 2018). The Board
comprises five directors, 60% female, with a strong
mix of strategic, financial, media and journalistic
skills and experience to support the development
and implementation of our strategy and maintain
high standards of corporate governance.
OUTLOOK
When we review the past six months against our
three strategic priorities, we are pleased with the
achievement of significant milestones, including
the launch of NZ Herald Premium, returning radio
revenue to growth, and delivering significant
revenue growth momentum in OneRoof.
We are encouraged by a positive start to the
second half of the year.
The advertising market shows some signs of
improvement, and our forward bookings in the
third quarter are up 6% compared to the same
period last year.
However, we remain cautious of the potential
impact of the softening economy and weaker
business confidence.
From a capital management perspective, we
are also on target to reduce net debt further
in the second half in line with our Capital
Management Policy.
On behalf of the Board and Executive Team, we
would like to thank our shareholders, our people
and our customers for their continued support to
build a legacy of award-winning journalism and
broadcasting and to deliver news, entertainment
and information to Kiwis every day.
KEEPING KIWIS.
IN THE KNOW..
1,718,000
NZ Herald weekly
brand audience

(print + digital)
+3%
YOY
OUTSTANDING
READERSHIP RESULTS
477,000
NZ Herald
average issue
readership
+4%
YOY
More than the weekly reach
of our competitors combined
NZME print is only North Island,
whereas competitors are nationwide
Includes NZ Herald, Northern Advocate, Bay of Plenty Times,
Rotorua Daily Post, Whanganui Chronicle, Hawke’s Bay Today
Daily newspapers
(print) weekly reach*
1,023,000
NZ Herald Premium
15,000 PAID
SUBSCRIBERS
12 month target
reached
in less
than 6 weeks
NZ RADIO
AWARDS
Station of the year:
ZM
Best music

breakfast show:
ZM
Best Talk Presenter
(Breakfast or Drive):

Mike Hosking
Best Talk Presenter
(Other): Marcus Lush
Outstanding
Contribution Award:
Simon Barnett
Services to
Broadcasting Award:
Larry Williams
Peter Cullinane
Chair
Michael Boggs
Chief Executive Officer

---

Consolidated Interim
Financial Statements

NZME Limited
FOR THE SIX MONTHS ENDED 30 JUNE 2019

Page 2
Directors’ Statement 3
Consolidated Interim Income Statement 4
Consolidated Interim Statement of Comprehensive Income 5
Consolidated Interim Balance Sheet 6
Consolidated Interim Statement of Changes in Equity 7
Consolidated Interim Statement of Cash Flows 8
Notes to the Consolidated Interim Financial Statements*
Basis of Preparation 9
Group Performance 11
Operating Assets and Liabilities 15
Capital Management 21
Group Structure and Investments in Other Entities 25
Other Notes 27
Independent Auditors’ Review Report 28
* In an attempt to make these financial statements easier to read, the notes to the financial statements have been grouped into six
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 interim
financial statements have been prepared. The material accounting policies used in the preparation of these consolidated interim
financial statements are generally consistent with those used in the audited consolidated financial statements for the year ended
31 December 2018. Where there have been changes to accounting policies or the Directors consider it necessary to disclose
an accounting policy in these consolidated interim financial statements, accounting policies have been included in the relevant
note. Key judgments and estimates relevant to a particular note are also included in the relevant note, and are clearly marked.
A summary of the key judgments and estimates is also included under the Basis of Preparation section on page 10.
CONTENTS
Consolidated Interim Financial Statements
for the six months ended 30 June 2019 (unaudited)

Page 3
The Directors are pleased to present the consolidated interim financial statements of NZME Limited (the
“Company”) and its subsidiaries (together the “Group”) for the six months ended 30 June 2019, incorporating
the consolidated interim financial statements and the auditor’s independent review report.
The Directors are responsible, on behalf of the Company, for presenting these consolidated interim financial
statements in accordance with applicable New Zealand legislation and New Zealand equivalent to International
Accounting Standard 34:
Interim Financial Reporting and International Accounting Standard 34: Interim Financial
Reporting
and the NZX Listing Rules.
The consolidated interim financial statements for the Group as presented on pages 4 to 27 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
DIRECTORS’ S TATE M E N T
Peter Cullinane Carol Campbell
Director Director

Date: 26 August 2019

Page 4
Note
June 2019
$’000
June 2018
$’000
Revenue2.1
180,741
188,904
Finance and other income2.1
399
497
Total revenue and other income
2.1
181,140
189,401
Expenses from operations before finance costs, depreciation, amortisation
(1 57,7 5 0)
(168,697)
Depreciation & amortisation2.3.2
(17,0 1 0)
(13,089)
Finance costs2.3.2
(4,953)
(2,195)
Profit before income tax expense1,427
5,420
Income tax expense
(477)
(1,763)
Profit for the period950
3,657
Profit for the period is attributable to:
Owners of the Company
1,176
3,657
Non-controlling interests
(226)
-
950
3,657
Cents
Cents
Earnings per share attributable to the ordinary shareholders
of the Company
Basic / diluted earnings per share2.2
0.60 1.87
The above Consolidated Interim Income Statement should be read in conjunction with the accompanying notes.
CONSOLIDATED INTERIM
I N C O M E S TATE M E NT
for the six months ended 30 June 2019 (unaudited)

Page 5
Note
June 2019
$’000
June 2018
$’000
Profit for the period950
3,657
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
(2)
9
Other comprehensive income, net of tax(2)
9
Total comprehensive income948
3,666
Total comprehensive income attributable to:
Owners of the Company
1,174
3,666
Non-controlling interests
(226)
-
948
3,666
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the
accompanying notes.
CONSOLIDATED INTERIM STATEMENT
OF COMPREHENSIVE INCOME
for the six months ended 30 June 2019 (unaudited)

Page 6
Note
June 2019
$’000
December 2018
$’000
Current assets
Cash and cash equivalents
10,864
11,717
Trade and other receivables
54,710
58,694
Inventories
2,247
1,866
Income taxation
2,221
898
Total current assets70,042
73,175
Non-current assets
Intangible assets3.1
3 2 7, 8 6 0
329,911
Property, plant and equipment3.2
41,500
47,14 5
Right-of-use assets3.3
74 ,387
-
Capital work in progress3.4
10,322
8,758
Other financial assets
3,788
3,788
Other receivables
1,046
-
Total non-current assets458,903
389,602
Total assets528,945
462,777
Current liabilities
Trade and other payables
50,382
52,036
Current lease liabilities
11,836
-
Total current liabilities62,218
52,036
Non-current liabilities
Trade and other payables
-
13,665
Non-current lease liabilities
82,935
-
Interest bearing liabilities4.2
101,053
109,992
Deferred tax liabilities
968
448
Total non-current liabilities184,956
124,105
Total liabilities2 47,174
176,141
Net assets281,771
286,636
EQUITY
Share capital
360,363
360,363
Reserves
3,114
2,998
Retained earnings
(82,417)
( 7 7,6 62)
Total Company interest281,060
285,699
Non-controlling interests711
937
Total equity281,771
286,636
The above Consolidated Interim Balance Sheet should be read in conjunction with the accompanying notes.
CONSOLIDATED INTERIM
BALANCE SHEET
as at 30 June 2019 (unaudited)

Page 7
Attributable to owners of the company
Note
Share
capital
$’000
Reserves
$’000
Retained
earnings
$’000
To t a l
$’000
Non-
controlling
interests
$’000
To t a l
Equity
$’000
Balance at 1 January 2018
360,3632,385(73,716)
289,032
-
289,032
Profit for the period--3,657
3,657
-
3,657
Other comprehensive income -9-
9
-
9
Total comprehensive income
-93,657
3,666
-
3,666
Dividends paid--(11,761)
(11,761)
-
(11,761)
Supplementary dividends paid--(1,404)
(1,404)
-
(1,404)
Tax credit on supplementary dividends--1,404
1,404
-
1,404
Share based payments expense-186-
186
-
186
Balance at 30 June 2018
360,3632,580(81,820)
281,123
-
281,123
Balance at 1 January 2019
360,3632,998( 7 7,6 62)
285,699
937
286,636
Adoption of NZ IFRS 163.3.1--(5,931)
(5,931)
-
(5,931)
Restated balance at 1 January 2019
360,3632,998(83,593)
279,768
937
280,705
Profit for the period--1,176
1,176
(226)
950
Other comprehensive income -(2)-
(2)
-
(2)
Total comprehensive income
-(2)1,176
1,174
(226)
948
Share based payments expense-118-
118
-
118
Balance at 30 June 2019
360,3633,114(82,417)
281,060
711
281,771
The above Consolidated Interim Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
CONSOLIDATED INTERIM STATEMENT
OF CHANGES IN EQUITY
for the six months ended 30 June 2019 (unaudited)

Page 8
CONSOLIDATED INTERIM
STATEMENT OF CASH FLOWS
for the six months ended 30 June 2019 (unaudited)
Note
June 2019
$’000
June 2018
$’000
Cash flows from operating activities
Receipts from customers
182,837
188,501
Payments to suppliers and employees3.3.4
(158,151)
(171,747)
Dividends received
79
141
Interest received
53
48
Interest paid on bank facilities
(1,994)
(2,040)
Interest paid on leases3.3.4
(2,451)
-
Income taxes paid
(2,030)
(11,851)
Net cash inflows / (outflows) from operating activities
4.3
18,343
3,052
Cash flows from investing activities
Payments for property, plant and equipment and intangible assets
(including work in progress)
(4,465)
( 7,110)
Proceeds from sale of property, plant and equipment
11
5
Net cash inflows / (outflows) from investing activities(4,454)
( 7,10 5)
Cash flows from financing activities
Proceeds from borrowings
27,500
63,400
Repayments of borrowings
(36,500)
(44,600)
Borrowing costs paid
(36)
-
Dividends paid to Company's shareholders
-
(11,761)
Payments for lease liability principal3.3.4
(5,706)
-
Net cash inflows / (outflows) from financing activities(14 ,742)
7,0 3 9
Net increase / (decrease) in cash and cash equivalents
(853)
2,986
Cash and cash equivalents at beginning of the period
11,717
9,570
Cash and cash equivalents at end of the period10,864
12,556
The above Consolidated Interim Statement of Cash Flows should be read in conjunction with the accompanying
notes.

Page 9
1.1 REPORTING ENTITY AND STATUTORY BASE
NZME Limited (NZX:NZM, ASX:NZM) is a for-profit company limited by ordinary shares which are publicly traded
on the NZX Main Board and the Australian Securities Exchange as a Foreign Exempt Listing. NZME Limited is
incorporated and domiciled in New Zealand. It is registered under the Companies Act 1993 and is a FMC reporting
entity under Part 7 of the Financial Markets Conduct Act 2013. The entity’s registered office is 2 Graham Street,
Auckland, 1010, New Zealand.
NZME Limited (the “Company” or “Parent”) and its subsidiaries’ (together the “Group”) principal activity during
the financial period was the operation of an integrated media and entertainment business.
1.2 GENERAL ACCOUNTING POLICIES
These consolidated interim financial statements have been prepared in accordance with New Zealand equivalent
to International Accounting Standard 34:
Interim Financial Reporting, International Accounting Standard 34: Interim
Financial Reporting
and the NZX Listing Rules.
The consolidated interim financial statements do not include all notes of the type normally included in an annual
financial report. Accordingly, these consolidated interim financial statements should be read in conjunction with
the audited consolidated financial statements for the year ended 31 December 2018 and any public announcements
made by NZME Limited during the interim reporting period and up to the date of these consolidated interim
financial statements. These consolidated interim financial statements are presented for the Group.
The material accounting policies used in the preparation of these consolidated interim financial statements are
generally consistent with those used in the audited consolidated financial statements for the year ended
31 December 2018. Where there have been changes to accounting policies or the Directors consider it necessary
to disclose an accounting policy in these consolidated interim financial statements, accounting policies have been
included in the relevant note.
Certain prior period information has been re-presented consistent with current period disclosures to provide
more meaningful comparison.
These consolidated interim 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.
These consolidated interim financial statements were approved for issue by the Board of Directors on 26 August
2019. These consolidated interim financial statements have not been audited, but have been reviewed in
accordance with New Zealand Standard on Review Engagement 2410:
Review of Financial Statements Performed
by the Independent Auditor of the Entity.
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)
1.0 BASIS OF PREPARATION

Page 10
1.3 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS
The preparation of the consolidated interim financial statements requires the use of certain significant judgments,
accounting estimates and assumptions, including judgments, 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. Significant areas of estimation and judgment in these consolidated interim financial
statements are consistent with those disclosed in the audited consolidated financial statements for the year ended
31 December 2018.
1.4 NEW STANDARDS AND INTERPRETATIONS ADOPTED IN THE CURRENT PERIOD
NZ IFRS 16:
Leases was adopted on 1 January 2019. The new standard requires a lessee to recognise a lease liability
that reflects future lease payments and a right-of-use asset for virtually all lease contracts. Interest and depreciation
charges on the lease liability and right-of-use assets replace the operating expenses that were incurred under
NZ IAS 17. Note 3.3.1 provides further information on the impact on the Group of adopting NZ IFRS 16.
There have been no other changes to accounting policies and no other new standards adopted during the period.

NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 11
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)
2.0 GROUP PERFORMANCE
2.1 DISAGGREGATION OF REVENUE AND OTHER INCOME
Print
$’000
Radio
$'000
Digital &
e-Commerce
$’000
To t a l
$’000
For the six months ended 30 June 2019
Advertising51,09653,03226,571
130,699
Circulation & subscription38,516-212
38,728
External printing & distribution3,948--
3,948
Other3,0774281,431
4,936
Segment revenue from integrated media
and entertainment activities
96,63753,46028,214
178,311
Shared services centre
1,701
Events
729
Total revenues from external customers180,741
Dividends
79
Rental income from sub-leases
256
Gain on disposal of property, plant and equipment
11
Other income346
Finance income
53
Total finance and other income399
Total revenue and other income 181,140
Print
$’000
Radio
$’000
Digital &
e-Commerce
$’000
To t a l
$’000
For the six months ended 30 June 2018
Advertising55,51053,11728,807
1 3 7, 4 3 4
Circulation & subscription40,404--
40,404
External printing & distribution4,293--
4,293
Other3,378327248
3,953
Segment revenue from integrated media
and entertainment activities
103,58553,44429,055
186,084
Shared services centre
1,702
Events
1,118
Total revenues from external customers188,904
Dividends
141
Rental income from sub-leases
308
Other income449
Finance income
48
Total finance and other income497
Total revenue and other income 189,401

Page 12
2.2 EARNINGS PER SHARE
Significant judgment: Under the Group’s Total Incentive Plan (“TIP”) Performance Rights were issued
to certain participating employees that, for the 2017 TIP, will at the discretion of the Board either convert
into fully paid ordinary shares or be settled in cash; and for the 2016 TIP, will convert into fully paid
ordinary shares. Under the TIP, where Performance Rights are settled in shares, 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
either repurchase shares from the market or settle the rights in cash and not to issue new shares.

June 2019
$’000
June 2018
$’000
Reconciliation of earnings used in calculating basic / diluted earnings per share
("EPS")
Profit attributable to owners of the parent entity
1,176
3,657
June 2019
Number
June 2018
Number
Weighted average number of shares
Weighted average number of shares for calculating basic EPS
196,011,282
196,011,282
June 2019
Cents
June 2018
Cents
Basic / diluted earnings per share
Total basic / diluted earnings per share attributable to owners of the parent entity0.60
1.87
2.3 SEGMENT INFORMATION
2.3.1 Determination and description of segments
Significant judgment: 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 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.
Integrated Media and Entertainment incorporates the sale of advertising, goods and services generated from
the audiences attached to the Group’s media platforms.
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 13
2.3.2 Segment revenues and results
The segment information provided to the Directors and Executive Team for the six months ended 30 June 2019
is as follows:
June 2019
$’000
June 2018
$’000
Revenues from external customers by channel
Print
96,637
103,585
Radio
53,460
53,444
Digital & e-Commerce
28,214
29,055
Segment revenue from integrated media and entertainment activities178,311
186,084
Revenue from shared services centre
1,701
1,702
Events
729
1,118
Total revenues from external customers180,741
188,904
Dividend income
79
141
Rental income from sub-leases
A
256
308
Gain on disposal of property, plant and equipment
11
-
Expenses from operations before finance costs, depreciation, amortisation
and exceptional items
(153,477)
(166,162)
Total segment adjusted EBITDA
B
27,610
23,191
Depreciation and amortisation on owned assets
(10,599)
(13,089)
Depreciation on right-of-use assets
(6,411)
-
Total depreciation and amortisation(17,0 1 0)
(13,089)
Interest expense on bank facilities
(2,502)
(2,195)
Interest expense on leases
(2,451)
-
Total finance cost(4,953)
(2,195)
Interest income
53
48
Exceptional items:
Redundancies and associated costs
C
(3,193)
(2,096)
Costs in relation to one-off projects
D
(1,080)
(439)
Profit before tax from continuing operations1,427
5,420
A
Rental income of $166,506 was received from the sub-lease of right-of-use assets.
B
Adjusted Earnings before Interest, Tax, Depreciation and Amortisation (Adjusted EBITDA) from continuing operations
which excludes exceptional items, is a non-GAAP measure that represents the Group’s total segment result which
is regularly monitored by the Chief Operating Decision Maker. Exceptional items are those gains, losses, income
and expense items that are not directly related to the primary business activities of the Group which are determined
in accordance with the NZME Exceptional Items Recognition Framework adopted by the Audit & Risk Committee.
Exceptional items include redundancies and one-off projects. These items are excluded from the segment result that
is regularly reviewed by the Chief Operating Decision Maker.
C
The redundancies and associated costs relate to the restructuring and integration of the New Zealand operations.
D
2019 costs are primarily in relation to the disposal of the Group’s investment in Ratebroker Limited and historical holiday
pay adjustments. 2018 costs primarily relate to external consultants assisting with the proposed merger with Stuff Ltd.
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 14
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.
2.3.3 Impact of NZ IFRS 16 on the segment results and earnings per share
The following table shows the adjustments to profit or loss for the period as a result of the adoption of NZ IFRS 16.
Pre NZ IFRS 16
$’000
Adjustment
$’000
NZ IFRS 16
$’000
For the six months ended 30 June 2019
Total revenue and other income excluding interest income181,087-
181,087
Segment expenses(161,689)8,212
(153,477)
Total segment adjusted EBITDA
19,3988,212
27,610
Depreciation & amortisation(10,599)(6,411)
(17,0 1 0)
Finance costs(2,502)(2,451)
(4,953)
Interest income53-
53
Exceptional items(4,273)-
(4,273)
Profit before income tax expense
2,077(650)
1,427
Tax expense(659)182
(477)
Profit for the period
1,418(468)
950
(Less): non-controlling interests(226)-
(226)
Attributable to the owners of the company
1,644(468)
1,176
CentsCents
Cents
Earnings per share attributable to the ordinary shareholders
of the Company
Basic / diluted earnings per share0.84(0.24)
0.60
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 15
3.1 INTANGIBLE ASSETS
Goodwill
$'000
Software
$'000
Masthead
Brands
$'000
Radio
Licences
$'000
Brands
$'000
To t a l
$'000
As at 31 December 2018
Cost166,39768,633146,9767 7,5 4759,079
518,632
Accumulated amortisation and impairment(95,614)(51,809)-(41,298)-
(188,721)
Net book value
70,78316,824146,97636,24959,079
329,911
For the period ended 30 June 2019
Opening net book amount70,78316,824146,97636,24959,079
329,911
Additions-2---
2
Amortisation-(2,790)-(1,478)-
(4,268)
Adjustment and transfers-(5)---
(5)
Transfers from capitalised work in progress-2,220---
2,220
Net book value
70,78316,251146,97634,77159,079
3 2 7, 8 6 0
As at 30 June 2019
Cost166,39770,855146,9767 7,5 4759,079
520,854
Accumulated amortisation and impairment(95,614)(54,604)-(42,776)-
(192,994)
Net book value
70,78316,251146,97634,77159,079
3 2 7, 8 6 0

Significant judgment: As disclosed in note 2.3.1 the Group has one reportable segment - being
“Intergrated Media and Entertainment”. The Directors have also determined that this is the only cash
generating unit for the purposes of impairment testing. In the consolidated financial statements for the year
ended 31 December 2018 it was stated that Management had identified some reasonably possible changes
to key assumptions which could result in impairment. Management has conducted a review of possible
impairment indicators as at 30 June 2019 and concluded that there are no such indicators which would
require a full impairment assessment to be performed. Specifically, Management has considered the
trading performance of the Group compared to forecasts used in the impairment assessment at
31 December 2018 as well as the market capitalisation of the Group at 30 June 2019 which has increased
from 31 December 2018.
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)
3.0 OPERATING ASSETS & LIABILITIES

Page 16
3.2 PROPERTY, PLANT AND EQUIPMENT
Freehold
land
$'000
Buildings
$'000
Plant and
equipment
$'000
To t a l
$'000
As at 31 December 2018
Cost or fair value1,16514,697335,602
351,464
Accumulated depreciation and impairment-(6,254)(298,065)
(304,319)
Net book amount
1,1658,44337,537
47,14 5
For the period ended 30 June 2019
Opening net book amount1,1658,44337,537
47,14 5
Additions--14
14
Disposals--(1)
(1)
Depreciation-(617)(5,714)
(6,331)
Other adjustments-(1)8
7
Transfers from capitalised work in progress--666
666
Net book amount
1,1657,82532,510
41,500
As at 30 June 2019
Cost or fair value1,16514,697336,238
3 52 ,100
Accumulated depreciation and impairment-(6,872)(303,728)
(310,600)
Net book amount
1,1657,82532,510
41,500
3.3 RIGHT-OF-USE ASSETS
Significant judgments: The Group has elected to use the Modified Restrospective Approach in adopting
NZ IFRS 16 and has further decided to recognise the right-of-use assets in relation to the Graham Street
and Ellerslie Print Plant leases as if the standard had been applied from the commencement date of these
leases using the Group’s incremental borrowing rate and recognising an equity adjustment. For all other
leases the right-of-use asset recognised on adoption is equal to the lease liability calculated on 1 January
2019. The Group has also elected not to reassess whether a contract is, or contains a lease, at the date
of initial application. Instead, for contracts entered into before the transition date the Group relied upon
its assessment made applying NZ IAS 17 and NZ IFRIC 4. The Group has used the practical expedient
of applying a single discount rate to a portfolio of assets and has further applied the same incremental
borrowing rate of 5% to each portfolio of assets. In determining the discount rate to use, Management
reviewed publicly available rates for Government Bonds, Westpac swap rates and Treasury Risk-free
discount rates and then applied an adjustment to these rates to apply a company specific credit risk.
The Group has also used the practical expedient of relying on previous assessments of whether leases
are onerous.
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 17
Buildings
$'000
Transmission
$’000
Vehicles
$'000
Other
$'000
To t a l
$'000
For the period ended 30 June 2019
At adoption69,1499,4191,949130
80,647
Depreciation(4,158)(1,779)(417)(57)
(6,411)
Adjustments7378--
151
Net book amount
65,0647,7 181,53273
74 ,387
Accounting policy
The Group leases various offices, transmission towers, vehicles and other equipment which were all
classified as operating leases until 31 December 2018. Payments made under operating leases (net of any
incentives received from the lessor) were charged to profit or loss on a staight line basis over the period
of the lease.
From 1 January 2019, leases are recognised as a right-of-use asset and a corresponding lease liability.
Each lease payment is allocated between the lease principal and finance costs. Finance costs are
charged to profit or loss over the lease period and the right-of-use asset is depreciated over the shorter
of the asset’s useful life and the lease term on a straight-line basis.
Asssets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
include the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable,
• variable lease payments that are based on an index or a rate,
• amounts expected to be payable by the lessee under residual value guarantees,
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that
option.
3.3.1 Impact of NZ IFRS 16 adoption
At 31 December 2018 the Group had lease commitments of $126,681,834 and lease liabilities of $14,497,818
in relation to lease incentives received on operating leases and NZ IAS 17 accruals. The commitments included
leases for property, transmission sites, motor vehicles and other equipment. The following table shows
adjustments made to the balance sheet on adoption of NZ IFRS 16 on 1 January 2019.
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 18
To t a l
$'000
As at 1 January 2019
Right-of-use assets
104,612
Accumulated depreciation
(23,965)
Total assets80,647
Current lease incentive
(833)
Current lease liabilities
11,505
Non-current NZ IAS 17 lease adjustment
(4,637)
Non-current lease incentive
(9,028)
Non-current lease liabilites
88,820
Deferred tax liabilities
A
751
Total liabilities86,578
Net assets(5,931)
EQUITY
Retained earnings adjustment on adoption of NZ IFRS 16
(5,931)
Total Company interest(5,931)
A
At adoption of NZ IFRS 16 the outstanding portion of the Graham Street lease incentive gave rise to a deferred tax liability
which was partially offset by a deferrred tax asset in relation to the interest on lease liabilities, and depreciation on the
right-of-use assets, being greater than the sums paid to lessors under the lease agreements in relation to the Graham
Street and Ellerslie Print Plant leases.
3.3.2 Reconciliation of lease commitments to lease liabilities
To t a l
$'000
Operating lease commitments disclosed as at 31 December 2018
126,682
As at 1 January 2019
Discounted at the incremental borrowing rate at the date of intial application
100,203
Add: CPI increases not contained in lease commitments schedule
369
Add: motor vehicles not in 31 December lease commitments
105
(Less): service component of motor vehicle leases included in lease commitments
(352)
Net present value of future lease liabilities100,325
Current lease liabilities
11,505
Non-current lease liabilities
88,820
Total future lease liabilites100,325
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 19
3.3.3 Impact of NZ IFRS 16 on the balance sheet at 30 June 2019
Assets and liabilities have both increased as a result of the change in accounting policy in relation to leases.
At 30 June 2019 the balance sheet accounts affected by the change are detailed in the table below:
Pre NZ IFRS 16
$'000
Adjustment
$'000
NZ IFRS 16
$'000
Right-of-use assets-74,387
74 ,387
Impact on total assets
74,387
Current lease incentive833(833)
-
Current lease liabilities-11,836
11,836
Non-current NZ IAS 17 lease adjustment5,109(5,109)
-
Non-current lease incentive8,611(8,611)
-
Non-current lease liabilities-82,935
82,935
Deferred tax liabilities400568
968
Impact on total liabilities
80,786
Impact on net assets
(6,399)
3.3.4 Impact of NZ IFRS 16 on the statement of cash flows for the six months ended 30 June 2019
Cash outflows from leases for the six months ended 30 June 2019 are detailed in the table below. For the period
ended 30 June 2018 the equivalent cash outflows were included in cash flows from operating activities as payments
to suppliers and employees.
To t a l
$'000
For the period ended 30 June 2019
Interest paid on leases (operating activities)
(2,451)
Payments for lease liability principal (financing activities)
(5,706)
Total cash outflows from leases(8,157)
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 20
3.4 CAPITAL WORK IN PROGRESS
June 2019
$'000
As at 31 December 20188,758
Additions
4,450
Transfers to property, plant and equipment
(666)
Transfers to intangible assets
(2,220)
As at 30 June 201910,322
Capital work in progress is transferred to the relevant asset category once the project is completed. Capitalised
work in progress is not depreciated or amortised prior to being transferred to the relevant asset category.
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:
June 2019
$'000
December 2018
$'000
Total assets
528,945
462,777
(Less): intangible assets
(3 2 7, 8 6 0)
(329,911)
(Less): total liabilities
(2 47,174)
(176,141)
Net tangible assets(46,089)
(43,275)
Number of shares issued (in thousands)
196,011
196,011
Net tangible assets per share($0.24)
($0.22)
3.5.1 Impact of NZ IFRS 16 on the Group’s net tangible assets per share as at 30 June 2019
Pre NZ IFRS 16
$'000
Adjustment
$’000
NZ IFRS 16
$’000
Total assets454,55874,387
528,945
(Less): intangible assets(327,8 6 0)-
(3 2 7, 8 6 0)
(Less): total liabilities(166,388)(80,786)
(2 47,174)
Net tangible assets
(39,690)(6,399)
(46,089)
Number of shares issued (in thousands)
196,011
Net tangible assets per share
($0.20)
($0.24)
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 21
4.1 DIVIDENDS
4.1.1 Determination and description of segments
On 18 February 2019 the Board of Directors confirmed that NZME Ltd would not be declaring a final dividend
for the year to 31 December 2018.
4.1.2 Dividends declared after balance date
The Board of Directors have not declared an interim dividend for the year to 31 December 2019.
4.1.3 Franking and imputation credits
June 2019
$'000
December 2018
$'000
Imputation credits available for subsequent reporting periods based on the New Zealand
28% tax rate for the Group
NZ$ 10,314
NZ$ 8,259
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 have
AU$10,828,676 (December 2018: AU$10,828,676) available that Directors expect to be available to the Company
in future periods.
4.2 INTEREST BEARING LIABILITIES
June 2019
$'000
December 2018
$'000
Non-current interest bearing liabilities
Bank loans – secured
101,500
110,500
Deduct:
Capitalised borrowing costs
(447)
(508)
Total non-current interest bearing liabilities101,053
109,992
Net debt
(Less): cash and cash equivalents
(10,864)
(11,717)
Total debt less cash and cash equivalents90,189
98,275

NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)
4.0 CAPITAL MANAGEMENT

Page 22
The Group is funded from a combination of its own cash reserves and NZ$150 million bilateral bank loan facility,
which NZME refinanced on 21 November 2018, of which $101.5 million (2018: $110.5 million) is drawn and
$48.5 million (2018: $39.5 million) is undrawn as at 30 June 2019. The new facility limit will step down by
$10 million annually from 1 January 2020. This facility expires on 1 January 2022.
The interest rate for the drawn facility is the BKBM 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.
4.3 CASH FLOW INFORMATION
June 2019
$'000
June 2018
$'000
Reconciliation of cash
Cash at end of the period, as shown in the statements of cash flows, comprises:
Cash and cash equivalents10,864
12,556
Reconciliation of net cash inflows / (outflows) from operating activities to profit
for the period:
Profit for the period
950
3,657
Depreciation and amortisation expense
17,0 1 0
13,089
Borrowing cost amortisation
97
53
Net (gain) on sale of non-current assets
(11)
-
Change in current / deferred tax payable
(1,554)
(10,087)
Share based payment expense
118
186
Changes in assets and liabilities net of effect of acquisitions:
Trade and other receivables
4,189
3,449
Inventories
(382)
372
Prepayments
(1,250)
(740)
Trade and other payables and employee benefits
(824)
(6,927)
Net cash inflows from operating activities18,343
3,052
4.4 FAIR VALUE MEASUREMENT
The Group measures and recognises the following assets and liabilities at fair value on a recurring basis:
• Financial assets at fair value through profit or loss (FVTPL);
• Land and buildings (excluding leasehold improvements).
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 23
4.4.1 Fair value hierarchy
NZ IFRS 13 requires disclosure of fair value measurements by level of the following fair value measurement
hierarchy:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly or indirectly, and
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
4.4.2 Fair value hierarchy
June 2019
$'000
December 2018
$'000
Recurring fair value measurements (Level 3)
Financial assets
There are no financial assets carried at fair value. Other financial assets
of $3,787,765 (December 2018: $3,787,765) are held at cost and therefore have
been excluded from this table.
Non-financial assets
Freehold land and buildings
Freehold land
1,165
1,165
Buildings (excluding leasehold improvements)
117
131
Total non-financial assets1,282
1,296
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.
4.4.3 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 30 June 2019 or 31 December 2018
(level 3).
The fair value of interest bearing liabilities disclosed in note 4.2 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 30 June 2019, the borrowing rates were determined to be between 4.0% and 4.6% (December
2018: between 3.3% and 4.5%), 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).
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 24
4.4.4 Valuation techniques used to derive at level 2 and 3 fair values
Recurring fair value measurements
The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques. These valuation techniques maximise the use of observable market data where it is available and rely
as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
The Group obtains independent valuations for its freehold land and buildings (classified as property, plant and
equipment in note 3.2), less subsequent depreciation for buildings, with sufficient regularity to ensure that the
carrying value of the assets is materially consistent with their fair value. All resulting fair value estimates for
properties are included as level 3.
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 25
5.1 CONTROLLED ENTITIES
The consolidated interim 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. There were no changes in control during the
period ended 30 June 2019.
June 2019
Ownership
Interest
December 2018
Ownership
Interest
Name of entity
Grabone Limited
100%
100%
NZME Australia Pty Limited
A
100%
100%
NZME Educational Media Limited
100%
100%
NZME Holdings Limited
100%
100%
NZME Investments Limited
100%
100%
NZME Print Limited
100%
100%
NZME Publishing Limited
100%
100%
NZME Radio Investments Limited
100%
100%
NZME Radio Limited
B
100%
100%
NZME Specialist Limited
100%
100%
The Hive Online Limited
100%
100%
New Zealand Radio Network Limited
100%
100%
The Radio Bureau Limited
100%
100%
OneRoof Limited
80%
80%
A
Incorporated in, and operates in, Australia.
B
One “Kiwi Share” held by the Minister of Finance. The rights and obligations are set out in the NZME Radio constitution.
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)
5.0 GROUP STRUCTURE AND INVESTMENTS IN OTHER ENTITIES

Page 26
5.2 INTERESTS IN OTHER ENTITIES
The Group has the following associates, joint ventures and joint operations:
June 2019
Ownership
Interest
December 2018
Ownership
Interest
Chinese New Zealand Herald Limited
A
50%
50%
Eveve New Zealand Limited
A
40%
40%
KPEX Limited
A
25%
25%
New Zealand Press Association Limited
A
38.82%
38.82%
Restaurant Hub Limited
A
40%
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
D
0%
50%
The Newspaper Publishers Association of New Zealand Incorporated
C
Online Media Association
C
New Zealand Media Council
C
Radio Broadcasters Association Incorporated
C
A
These entities are classified as joint ventures or associates. Because the effects of equity accounting are immaterial,
these investments are carried at cost.
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.
D
In June 2019 the Group transferred all of its shares to the founding shareholders of Ratebroker Limited.
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)

Page 27
6.1 RELATED PARTIES
The Group did not purchase print services from The Beacon Printing & Publishing Company Limited, a company
in which the Group holds a 21% interest in, as the contract for supply ended on 30 September 2018. In the first half
of 2018 purchases were $1,510,000.
In November 2015, the Company, Stuff, 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 $1,061,448 (2018: $1,595,000) from KPEX Limited and paid commission
of $97,487 (2018: $225,000) to KPEX Limited.
During 2016, the Group acquired interests in certain joint ventures and associates. The Group has entered into
commitments to provide future services (such as house advertising, occupancy space at NZME offices, business as
usual finance and human resources support). During the period such services were provided to Eveve New Zealand
Limited, valued at $21,496 (2018: $13,996), Restaurant Hub Limited, valued at $37,898 (2018: $83,927) and Ratebroker
Limited for $nil consideration (2018: $nil consideration). The outstanding balances for future services are included in
the table below.
June 2019
Receivables
$'000
December 2018
Receivables
$'000
June 2019
Payables
$'000
December 2018
Payables
$'000
Balances with related party
KPEX Limited
508
940
74
127
Chinese New Zealand Herald Limited
-
-
87
19
Eveve New Zealand Limited
-
-
88
124
Restaurant Hub Limited
-
-
51
89
Total related party receivables and payables 508
940
300
359
6.2 CONTINGENT LIABILITIES
The Group did not have contingent liabilities as at 30 June 2019.
6.3 SUBSEQUENT EVENTS
The Directors are not aware of any material events subsequent to the balance sheet date.
NOTES TO THE CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)
6.0 OTHER NOTES

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 review report
To the Shareholders of NZME Limited

Report on the consolidated interim financial statements
We have reviewed the accompanying consolidated interim financial statements of NZME Limited (the
Company) and its subsidiaries (the Group) on pages 4 to 27, which comprise the consolidated interim
balance sheet as at 30 June 2019, and the consolidated interim income statement, the consolidated
interim statement of comprehensive income, the consolidated interim statement of changes in equity
and the consolidated interim statement of cash flows for the six months ended on that date, and
selected explanatory notes.
Directors’ responsibility for the consolidated interim financial statements
The Directors are responsible on behalf of the Company for the preparation and fair presentation of
these consolidated interim financial statements in accordance with International Accounting Standard
34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent to International Accounting
Standard 34 Interim Financial Reporting (NZ IAS 34) and for such internal control as the Directors
determine is necessary to enable the preparation of consolidated interim financial statements that are
free from material misstatement, whether due to fraud or error.
Our responsibility
Our responsibility is to express a conclusion on the accompanying consolidated interim financial
statements based on our review. We conducted our review in accordance with the New Zealand
Standard on Review Engagements 2410 Review of Financial Statements Performed by the
Independent Auditor of the Entity (NZ SRE 2410). NZ SRE 2410 requires us to conclude whether
anything has come to our attention that causes us to believe that the consolidated interim financial
statements, taken as a whole, are not prepared in all material respects, in accordance with IAS 34 and
NZ IAS 34. As the auditors of the Company, NZ SRE 2410 requires that we comply with the ethical
requirements relevant to the audit of the annual financial statements.
A review of consolidated interim financial statements in accordance with NZ SRE 2410 is a limited
assurance engagement. The auditor performs procedures, primarily consisting of making enquiries,
primarily of persons responsible for financial and accounting matters, and applying analytical and
other review procedures.
The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing (New Zealand) and International
Standards on Auditing. Accordingly, we do not express an audit opinion on these consolidated interim
financial statements.
We are independent of the Group. Our firm carries out other services for the Group in the areas of
taxation compliance and taxation advisory services, advisory services in connection with treasury
policy and revenue benchmarking, and other assurance services including circulation and payroll
assurance services. The provision of these other services has not impaired our independence.



Page 28

Page 29




Conclusion
Based on our review, nothing has come to our attention that causes us to believe that these
consolidated interim financial statements of the Group do not present fairly, in all material respects,
the financial position of the Group as at 30 June 2019, and its financial performance and cash flows for
the six months then ended, in accordance with IAS 34 and NZ IAS 34.
Who we report to
This report is made solely to the Company’s Shareholders, as a body. Our review work has been
undertaken so that we might state to the Company’s Shareholders those matters which we are required
to state to them in our review 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 Shareholders, as a body, for our
review procedures, for this report, or for the conclusion we have formed.

For and on behalf of:






Chartered Accountants Auckland
26 August 2019

---

MEDIA RELEASE – 2019 HALF YEAR FINANCIAL RESULTS
27 August 2019

Solid performance while investing for growth.

New Zealand Media and Entertainment (NZME) has today announced NZ Herald Premium has
hit a new milestone with more than 15,000 paid digital subscribers.

Making the announcement as part of NZME’s 2019 half year financial results, CEO Michael
Boggs said the digital subscription service, designed to ensure quality journalism has a thriving
future in New Zealand, has been a huge success. Subscriptions and revenue have exceeded
expectations.

Today NZME reported Statutory Net Profit After Tax of $1.0 million, Total Revenue of $181.1
million and Operating EBITDA
1
of $19.4 million for the six months ended 30 June 2019.

“Given the well reported market headwinds, this is a solid result supported by strong growth
in our digital initiatives.

“Our Premium digital subscribers are highly engaged, spending three times longer on
nzherald.co.nz than non-subscribers. That’s great news for the journalists in our newsrooms
and our advertisers. On top of our 15,000 new digital subscribers, thousands of NZ Herald
newspaper subscribers have also activated their digital subscriptions. This means NZ Herald
Premium has been activated by close to 40,000 subscribers,” said Mr Boggs.

The successful launch of NZ Herald Premium is a key strategic milestone achieved in the first
half of 2019. Returning radio revenue to growth is another strategic milestone achieved in the
first six months of 2019.

“For the first time in several years radio revenue is in growth. Even more pleasing is that this
part of our business is showing continued momentum going into the second half of the year.

”This is a great turnaround for NZME Radio. It is the result of our focus on ensuring we have
the best talent on air to drive the resurgence of this channel. We’ve also been enhancing our
sales teams with some of the best radio specialists in the market, to make sure we convert our
increased share of the radio audience to deliver great results for our advertisers,” said Mr
Boggs.

NZME’s multi-channel real estate platform OneRoof is also going from strength to strength.
Launched just over a year ago, OneRoof revenue grew to $1.3 million for the first half of 2019.

1
Operating results are presented excluding the impact of NZ IFRS 16 and exceptional items to allow for a like for like comparison between
H1 2018 and H1 2019. Please refer to note 2.3.2 and note 2.3.3 of the Consolidated Interim Financial Statements for the period ended 30
June 2019 and slide 28 and 29 of the 2019 half year results presentation for a detailed reconciliation.

With its unique blend of high-quality real estate journalism and property listings, OneRoof is
driving audience engagement with monthly unique browsers growing 33% in the past six
months to 297,000.

“While our ‘new kids on the block’, NZ Herald Premium and OneRoof are already proving their
potential value to NZME, there have also been some exciting highlights in our print business
during the past six months,” said Mr Boggs.

On a typical day 477,000 New Zealanders read the NZ Herald newspaper, an increase of 18,000
readers compared to the same period last year. That’s the highest readership level in four
years. Combined with online and mobile readers, more than one million New Zealanders read
NZ Herald content each day.
2


“NZME’s audience and brand growth have taken place in an advertising market that
continues to be challenging. Ongoing pressure on print and digital advertising, along with a
small decline in print circulation revenues, have impacted the financial results in the period,”
said NZME CFO, David Mackrell.

NZME announced that for the six months ended 30 June 2019, Total Revenue was $181.1
million, a decline of 4% compared to the previous corresponding period.

“The industry wide challenges around advertising spend have contributed to our half yearly
Operating EBITDA of $19.4 million
3
, down 16% compared to the previous corresponding
period. An ongoing focus on costs has delivered a reduction in underlying operating costs
during the period of $4.8 million
2
. We are pleased to report we have reduced net debt by
$8.1 million in the six months,” said Mr Mackrell.

Mr Boggs said, “While we continued to experience market challenges in the past six months,
there are some encouraging signs in advertising spending as we head into the second half of
our financial year, with third quarter bookings up 6% year-on-year.

“The encouraging performance of our new and emerging platforms like OneRoof and NZ
Herald Premium along with the growth in our radio and print audiences means NZME is
increasingly well placed to connect advertisers with engaged audiences.”

ENDS

For further information please contact:
Cliff Joiner, GM Communications, New Zealand Media and Entertainment
(+64) 212709995
cliff.joiner@nzme.co.nz

2 Nielsen CMI Fused Q2 2018 - Q1 2019 May 2019 (population 10+ years).
3 Operating results are presented excluding the impact of NZ IFRS 16 and exceptional items to allow for a like for like comparison between
H1 2018 and H1 2019. Please refer to note 2.3.2 and note 2.3.3 of the Consolidated Interim Financial Statements for the period ended 30
June 2019 and slide 28 and 29 of the 2019 half year results presentation for a detailed reconciliation.