NZME 2025 Interim Results Webcast

Good morning and welcome to New Zealand Media and Entertainment's 2025 Half-Year Results webcast. My name is Kelly Gunn and I'm the GM Communications at NZME and I'll be facilitating all questions at the end of today's presentation. Presenting on the call today is Michael Boggs, NZME's Chief Executive Officer, and David Mackrell, NZME's Chief Financial Officer. Following the presentation today, we will open the webcast to shareholders and analysts for questions. If you wish to ask a question, you can click Raise Hand at the bottom of your screen. I'll then prompt you to unmute your microphone so you can speak. Please note that only participants joining from the webcast can ask a question. If you have any technical issues, please use the chat function on your screen and one of our team will help. I will now hand over to our CEO, Michael Boggs. Good morning everyone and thanks for taking the time to be with us this morning. For those of you participating via our online webcast, we'll see the presentation materials on the screen and you'll obviously be able to follow along. Today's session will begin with me providing an update on three of our key strategic focus areas, followed by a review of our top-line financial results and the current market landscape. I'll then discuss how we're performing in the market and share updates on our digital transformation initiatives, which obviously remain central to our strategic objectives. David will then take you through our financial performance covering the first half of the year. After that financial overview, I'll then get into a bit more detail on our operational results and strategic developments across our three core divisions. Those are obviously OneRoof, audio and publishing. We'll then look at the present trading conditions and share our outlook for the remainder of the year. Wrap up, as Kelly just said, both David and I look forward to addressing any questions you have at the end. Let's now turn to an update on our areas of focus. You'll recall at our annual results announcement in February this year, we shared some key focuses for the company over and above our strategic priorities across the three divisions of the business. The first was that NZME launched a strategic review to accelerate OneRoof's growth and realise its full potential in delivering value for shareholders. The review has highlighted the significant value creation opportunity of the OneRoof business. The new board is focused in the short term on growing OneRoof organically, while obviously keeping strategic opportunities under constant review. The second area of focus was on governance at NZME. NZME undertook to recruit additional specialists from a governance perspective, as well as the election of Stephen Joyce and Grim Grennan at NZME's 2025 annual shareholders meeting. Technology and marketplaces expert Bowen Pan has subsequently appointed and been adjoined the board. The three new directors bring a range of skills and experience to the board and have been prioritising gaining a comprehensive understanding of the business in the first two months, meeting with executive and senior management across NZME to gather insights. Finally you'll see the board has now established an editorial advisory board to provide advice, support and constructive challenge to the NZME editorial team on matters of editorial policy and direction. This editorial advisory board does not have executive or decision-making powers, but will provide independent counsel to the Chief Content Officer, that's Murray Kirkness, and the NZME on editorial standards, audience development and digital transformation initiatives. Furthermore, to support the growth and acceleration of One Roof, the board's also formalised the establishment of a One Roof advisory board that reports to the main board and is chaired by NZME board director Bowen Pan. We're also focused on continuing to adapt to the slower than expected market recovery, with market commentators advising economic improvement is now expected to incur in 2026. NZME is adjusting its cost base to preserve profitability, while it works on lifting market share to benefit from the eventual market upswing. During this time we've also played a small part in trying to inspire New Zealanders and the business community. We've written nearly 500 articles celebrating Kiwis and their businesses doing great things. This is in line with our commitment to keeping Kiwis in the know and connecting communities. Let's now turn to our results for the half, which is summarised on slide four. Operating revenue of $165.7 million was lower than the first half of last year, substantially due to the closure of our community publications in December last year. I'll cover this in a little more detail shortly. Pleasingly, operating EBITDA was $23.9 million for the first half. This was $2.5 million better than in the first half of last year. This delivers an operating earnings per share of 1.8 cents for the first half. The statutory net loss after tax of $0.4 million or $400,000 includes $5.2 million of restructuring and other non-recurring costs. The company produced free cash flow of $2.2 million, which was $2.9 million better than the first half of 2024. This left us with net debt of $33.3 million at the 30th of June. This was higher than December, given the seasonal cash flows in the first half, which obviously include the final 2024 dividend being paid in March 25. Additionally, the board has now declared a fully imputed interim dividend of 3 cents per share, consistent with last year, and that's payable on the 24th of September 2025. The chart on slide 5 highlights the key components in operating revenue, with some key changes to explain. One Roof digital revenue continued its growth, although this was partially offset by lower print revenue. As One Roof has grown to be a more significant part of the business, in December last year we began deferring a portion of the revenue to be recognised over the timeline that the classified advertising relates to. This is normally 1-2 months, hence the small adjustment to show a light-for-light comparison at the June periods. Audio revenue showed solid growth year-on-year for both digital and terrestrial radio. The demand and yield for the digital publishing programmatic market was weak during the period, while core digital advertising was also behind. Low-margin digital performance marketing reduced in the period, with fulfilment cost reductions substantially offsetting this revenue decline. As I noted earlier, the closure of several community publications reduced revenue for the half, but did not impact earnings significantly. Finally, this chart shows that while digital subscription revenue grew, this was more than offset by the decline in the print subscriber revenue. The early signs of economic recovery, identified in the first quarter, were constrained by continued higher inflation than anticipated and delayed house price recovery. You can see this on slide 6. The business and consumer confidence, as shown in the graph on the left, showed positive signs as the year commenced, but then stalled. Similarly, on the right, both the consumer price index chart and the house price index chart show the expected improvements through quarter 2, just did not eventuate. On slide 7, you can see that NZME's OneRoof audio and publishing platforms reach 9 out of 10 Kiwis, attracting Kiwi audiences like no other. They also underpin our digital revenue streams. This shows the improvements in our digital revenues across multiple businesses and platforms. In the bottom boxes, you can see the significant audiences across NZME. The top figure shows engagement with our traditional media of print and terrestrial radio platforms, while the bottom figure shows our digital audience engagement. As you can see, there's substantial audiences across each of our market-leading platforms, driving digital revenue growth, with the exception of digital publishing revenue that I spoke about earlier. Let me now hand over to David, who will take you through the details of the 2025 half-year results. Thanks, Michael, and thank you to everyone joining us on the call today. You'll see on slide 9 shows the performance of each division for the half compared to the first half of last year. The chart highlights that the improved audio and digital publishing results are the biggest drivers of the improved operating earnings. On a like-for-like basis, OneRoof also delivered an improved contribution to the group, with digital revenue 22% higher. Audio's performance improved through a 1% lift in revenue and a 3% reduction in costs. Digital publishing margin improved as a result of reducing the low-margin revenue activity along with cost reductions to achieve a 9% lower cost base. Print-related publishing revenue continued a declining trend, partially offset by the additional third-party print revenue. However, cost reductions were able to significantly improve the result, with EBITDA down only $0.5 million for the half. Now turning to the operating results of the group for the six months on slide 10. The operating EBITDA result of $23.9 million was $2.5 million better than the operating result for the first half of 2024. The improved results were achieved on a lower overall revenue base. Withreader revenue was 3% lower, with the decline in print subscriptions offsetting the growth in digital subscription revenue. Advertising revenue was also 3% lower, with the closure of the community newspapers in December the key driver. The improvement in the result was generated through a 5% reduction in operating costs, resulting in operating EBITDA being 12% better than the comparative half last year. Depreciation and amortisation were higher, with capital spending in recent years being shorter-life technology-related spend. Operating net profit after tax was 22% higher than last year, at $3.4 million. Slide 11 shows the total operating expenses were 5% lower in the first half of 2024, with the main drivers being lower people costs and lower print volumes, reducing print and distribution costs. The cost base was reduced through the closure of community newspapers, lower third-party digital fulfilment costs, with reduced performance marketing revenue, and saving impacts of the restructuring initiatives. During the half, there were a number of cost savings implemented, including reshaping the newsroom. And these initiatives will deliver annualised savings of $12 million, with $2 million recognised in the second quarter. The full impact of these cost reductions will be seen in the second half of the year. Non-recurring expenses primarily relate to the major restructuring in the half, particularly regarding the newsroom changes, together with legal and consulting costs in relation to the annual shareholders meeting in June. Slide 12 shows the continued strength of the balance sheet and highlights the seasonal increase in net debt. Recovering capital is $0.6 million higher than December due to a higher tax receivable balance and $1.7 million lower than June 2024. Net debt is $9.2 million higher than December and $3.3 million higher than June 2024, with the main driver being the payment of the final 2024 dividend in March 2025. And the large first half non-recurring expenditure that has been incurred. Slide 13 shows a summary of the cash flows, with cash flows from operations of $15 million, $2.9 million better than the first half of last year. This reflects improved operating earnings, with higher non-recurring expenses partially offset by lower tax paid. Note the other movement in the free cash flow for 2024 relates to a tax obligation arising on the issue of shares under the Long Term Incentive Scheme. Capital expenditure was lower than the first half of last year, and full-year capital expenditure is expected to be between $10 and $11 million. Distributions to shareholders of $11.3 million relates to the final dividend for 2024 of $0.06 per share, which was paid in March 2025. Turning to the capital management slide on slide 14, the graph shows the level of net debt and leverage over the last seven years. The recent half-year positions are also shown to highlight that mid-year net debt is generally higher due to the seasonality of cash flows. The seasonal increase in leverage remains within the target range of 0.5 to 1 times EBITDA pre-IFRS 2016, and is similar to the first half of last year. Net debt is projected to reduce by the end of 2025, with the leverage ratio returning to the lower end of the target range. Board has declared a fully imputed interim dividend of $0.03 per share, which is payable on 24 September 2025. I'll now hand back to Michael who will take you through the performance of each division. Thanks for that, David, and let's now first turn to OneRoof, our property platform. On page 17, you'll see that OneRoof residential listing revenue increased by 16% compared to a 1% market growth in listings. This above-market revenue growth was achieved through a 4% lift in upgrade conversions, which is shown in the middle graph. The graph on the right shows that average yield increased by 8% through an improved product mix during the year. Slide 18 shows OneRoof's monthly online web audience in orange compared to Trade Me property, which is shown by the yellow line. Since matching Trade Me in the last quarter of 2024, audience levels have remained relatively close. Results frequently tell us that they are achieving great results for the vendors from the OneRoof platform. However, we know we need to continue to improve to deliver on our revenue growth aspirations. On page 19, you'll see that OneRoof digital revenue has continued to grow and is 22% higher than last year on a like-for-like basis. As I mentioned earlier, from December 2024, we began deferring a portion of the revenue to be recognised over the timeline of the classifieds advertising. The 2024 comparative has been adjusted to reflect this. With the new listing market up just 1%, as noted just earlier, it's pleasing to see OneRoof outperform the market with upgrade conversion rates up 4% and yields up 8% through that product exchange. This delivered residential listings revenue growth of 16% year-on-year, with other listings and digital advertising listing the total digital revenue growth to 22% year-on-year. Print revenue was lower, largely due to new listings skewed toward lower-value properties, which tend not to market through print. Costs were 2% higher overall than last year, substantially as a result of the investment in salespeople to drive growth outside of Auckland. 2020 highlights the progress being made against OneRoof's strategic priorities. Engagement and listing inquiries continue to improve, helped by the launch of an enhanced new app and supported by a fresh new brand campaign. In addition, the wider NZME assets continue to be leveraged to promote OneRoof. A new sales structure was introduced in January this year to create a nationwide network of professionals focused purely on growing OneRoof. You'll see EBITDA margin has improved from 5% in the first half of 2024 to 8% this half. There is considerable potential for improvement as revenues grow. Moving to slide 21, you'll see the growth opportunity for OneRoof is significant, with market listings currently 9% below the historical average. While upgrade percentages have improved, market recovery will assist in lifting upgrade percentages closer to the short-term targets as vendors look to market their properties given they have more certainty of selling. Our target is 60% for Auckland and 40% for the rest of New Zealand by the end of 2026. Average yields are continuing to improve and are well below the highest value package level we offer, as shown in the graph in the bottom of slide 21. It is worth noting that OneRoof's package prices remain significantly less than the Trade Me equivalent, with them having recently announced further increases to come. Let's now turn to our audio division, which includes our digital audio platform, iHeart Radio, together with our many radio stations and our leading podcast network. Slide 23 highlights, outlines, and the operating highlights of the audio division. The graph on the left shows the monthly revenue market share between NZME and MediaWorks. You can see that in Q2 of 2025, our share has ended at 45%, which is slightly ahead of the 12-month average. One of the key drivers of the revenue growth year-on-year has been the increasing share of audio revenue sold through the agency sales channel, as shown in the middle chart. This reflects the larger brands returning to spend on their brands, while SMEs who book directly are still subdued. Podcast revenue growth has been a key area of focus. You can see that podcast revenue has continued to grow as a proportion of digital audio revenue and is now at 32% overall. Slide 24 shows the financial results for the audio division. Digital revenue was 6% higher than last year, with growth expected to rise in the second half. Broadcast revenue has pleasingly returned to growth. This is despite some slightly lower audience ratings. While overall selling and marketing expenses are lower, agency commissions within this expense line are actually 11% higher. This is due to the greater proportion of revenue being generated through this channel, as noted on the previous slide. Overall costs are 3% lower, with reduced people costs and lower selling and marketing costs the key drivers. As a result, the operating EBITDA of $10 million was 26% better than last year. Progress on the audio division's key strategic priorities are set out on slide 25. There has been a continued focus across a number of stations to drive audience and revenue growth. We launched a new station, iHeart Country New Zealand in Auckland, and six other markets to take advantage of a growing audience demand. We'll not see the benefits of this station in our audience measurement until later this year. This is expected to fill a clear gap in the New Zealand market and drive incremental revenue both terrestrially and digitally. An upgrade to the iHeart Radio app will deliver an enhanced user experience and functionality in the third quarter. We've extended our partnership with iHeart. This ensures long-term stability and strategic alignment with the iHeart brand. It's good to see that we've improved EBITDA margins from 7% for the first half of 2024 to 10% for the first half of this year. We do continue to see opportunities for growth. Let's move to cover our publishing division, which is focused on being New Zealand's leading news destination. Page 27 summarises some of the key operating metrics of the business. Total subscriptions continued to grow. Despite a difficult market, overall subscriptions increased by 5%. Dynamic yield management allowed digital subscriptions to continue to grow through trialers and retention campaigns, delivering overall digital subscriber revenue growth of 4% year-on-year. Print subscriber trends remain similar, with yield improvements partially offsetting the volume declines during the period. As just noted, digital subscription revenue grew by 4% and print declined. This resulted in overall reader revenue declining by 3% during the half. This can be seen on page 28. Digital advertising revenue is down 9% year-on-year. Core digital revenues are down 2%. The balance is driven by our decision to deprioritise low-yielding digital performance marketing campaigns. These are placed on third-party platforms, and in addition, a reduction in programmatic revenues. The print advertising revenue decline of 11% reflects our decision to close the majority of NZME's community titles in December 2024. Operating expense reductions also reflect this closure of the community titles, but in addition, the refreshed newsroom operating model, completed in the first quarter of 2025, delivered $4 million of annualised savings and is reflected in the second quarter lower cost structure. The publishing business delivered an operating EBITDA of $15.4 million, an increase of 5% on the prior year. So let's move to page 29. It separates the publishing business into the digital and print platforms of the business. On the left, you can see the digital business has increased its operating EBITDA to $5.7 million for the half, a 25% increase year-on-year. As noted on the right of the page, the digital business bears the cost of the majority of the newsroom journalists. Content that is produced for our digital platforms is then able to be used by our print publications at no cost. Only roles that are dedicated to print publishing, which does include some journalists, are included in the print publishing costs. We undertook a review of the people and costs that are dedicated to print in the second half of last year. As per note 1 at the bottom of the page, an adjustment for these newsroom cost allocations has been made and reflected in the 2024 first half comparatives. This saw first half 2024 print newsroom costs increased by $1.2 million and digital costs reduced by the same amount. You'll note the print business produced an operating EBITDA of $9.6 million for the half. So let's now talk about some of the key metrics of the publishing business. We've continued to see growth in our digital subscription volume, but revenue growth is being hampered by the economic environment. Our new subscriber technology is allowing us to offer customised pricing options and our personalisation of content is driving greater consumption and engagement. We have commenced work on improving the New Zealand Herald app experience and a migrating business desk for the core operating systems that will deliver improved capability. The business is performing well and we continue to see strong demand from both readers and from advertisers. We are continuing our transition to a subscription-led business, including a strong advertising offering. This is shown on page 31. On the left of the page, you can see digital advertising revenue growth over the period and the introduction of digital subscription revenue in yellow. On the top of this is the solid level of print reader revenue that we continue to see, with print advertising revenue added at the top. Digital revenue as a percentage of total revenue, this is represented by the blue line, has now grown to over 40% of total revenues. On the right hand side, we look to our digital audience and revenues. Users are the smaller category of audience to cite in a month, but as you would expect, they have a significantly higher average monthly revenue per user. Given this, they now generate 50% of our digital revenue from their subscription payment and their advertising consumption. We have a significant opportunity to convert the engaged users. Users visiting more than 10 times per month become subscribers of our core products. Let's move to page 33. As we've previously noted, the corporate and other financial results reflect the unallocated costs associated with the overall management and governments of the NZME group, plus the NZME events business that operates across the country. These total $3.1 million for the half. On page 34, you'll see a summary of the divisional results for the half versus last year. This includes the corporate expenses and sums to the operating EBITDA of $23.9 million, which was up 12% year on year. You can see the large increase in this exceptional non-recurring expense in the half, which as we noted, is substantially represented by the costs of implementing the cost savings of $12 million per annum. Now let me move to the outlook for NZME, including some key focus areas of the board. As we've noted, despite the market recovery continuing to be slow, economists do remain optimistic there will be improvements in the year ahead. We are seeing big brands that are represented by media agencies investing and building their brand profiles. This is of benefit to NZME as they see cross-platform advertising opportunities. However, small to medium businesses are still challenged. As the economic environment improves, with lifts in consumer competence and spending, we do expect that SME's advertising spend will increase. We've noted that NZME has completed annualised cost reductions of $12 million, $2 million of which was recognised in the second quarter of the year. The full impact will be seen in the second half of 2025 and then into 2026. We have seen improved performance in advertising revenue, with July up 2% year on year. That's after adjusting for the closure of the community newspaper network. This has flowed through to improved year on year profitability. Given this, and based on current performance, without significant economic improvements, NZME expects to deliver an operating EBITDA in the range of $57 million to $59 million for the year. This level of operating EBITDA would enable a full year dividend similar to the 2024 dividends, which were $0.03 and $0.06 per share, subject, of course, to a board decision at the appropriate time. Finally, on page 37, as you'd expect, the board is focused on improving shareholder value through a number of initiatives. These include a review of strategy across all three operating divisions of the business, accelerating the growth of OneRoof, improving the overall audience experience and performance across our many platforms, returning digital revenue to growth, proactively continuing to optimise the cost structure, and ensuring there are short-term profitability improvements across the business. We'll be able to update you further on these in the future. That now concludes our presentation. David and I are now very happy to take your questions. Thank you, Michael and David. We'll now open the webcast for any questions from shareholders. If you'd like to ask a question, please click raise hand on your screen and I will unmute your microphone for you. Please can we ask that you ask just one initial question and one follow-up if you wish to ensure everyone gets an opportunity to ask their question. If you have another question to ask, can we ask that you rejoin the queue so we can give others the opportunity to speak? Our first question is from Ari Dekker. Thanks, Ari. Good morning. Thanks for the presentation. Accepting that the new board still has to assess the growth and acceleration opportunities in OneRoof, could you at least just provide a little bit of colour on what was identified out of the review in terms of things that they will be looking at as options to accelerate that growth? Yeah, I think, Ari, and good morning and thanks for joining. I think there's a couple of things. Firstly, you will have seen that the OneRoof advisory board's been formalised with Bowen Pan taking the chair role of that. That reports directly to the board and will continue to give great guidance and support to management of the OneRoof team. I think secondly, the review identified there are just a significant opportunity with the current product and in the market overall. And so the board is very focused on ensuring that we continue to offer a better experienced product in the product, grow revenues quicker and deliver shareholder value organically, but will obviously keep its eyes open to other opportunities as they present themselves. And there was no reference to the initiative that you were exploring with Gumtree, I think you announced that in May. How's the exploration of that opportunity going? Any update there? No, there's nothing further to update on other than OneRoof is definitely our priority. We can see significantly improved shareholder value to be created through that. And I think it's more of a watching brief with other verticals. Okay, and then just OneRoof print. I mean, contribution margin there, you know, even if I just only deduct the direct costs of print and distribution is obviously becoming reasonably marginal. How far, like, are you assessing whether you will close down the print product in OneRoof and how far away might that be? You know, I don't think that's something we're considering at all at the moment, Ari. I think, you know, print was definitely impacted, I think, as we alluded to, you know, the types of homes that are currently selling. We actually see more opportunity in print at the moment. You know, a number of other publications have closed around the country, even specifically in Auckland, which gives us further opportunity to use print. It's great, one, for the OneRoof brand. It's also great for agents' brands. And so we see it as very complementary overall to the product offering. And then lastly, just digital only subs, I mean, you know, and again, except we are in a different, difficult macro backdrop, but the, you know, this sequential growth in first half 25 on where you finished last year was definitely, you know, pretty slow. Can you just talk about initiatives, the specific initiatives to support growth and what your outlook is for the balance of the year? Is it possible that the 26 target will need to be lowered there or are you not at that point yet? No, we're certainly not at that point. Like if I look through to last year and the first half last year, we did 7,000 growth in digital subs, we did 5,000 or 4,000 or 5,000 in this first half. So yes, it is off a bit there. Second half's usually a bigger half for us. The new technology we put in now actually allows us to be personalised and customised from a pricing to either gain clients or to retain them. And so we have seen, you know, some yield degradation as we continue to do that, but we now see that gives us an opportunity to build engagement and continue to grow strongly. So, you know, we're still very focused on growing to that target number. Thank you. Thanks, Ari. We now have a question from James Lindsay. Morning, James. Good morning to you all. Yeah, a couple for me as well. Obviously, the team has obviously never sat still on costs out, but any expectation for further non-recurring expenses for the second half? So it will be, most of it will be captured in the first half, James. Well, we wouldn't discount the fact that we might do something more that, you know, there's nothing significant planned at this point in the second half. OK, thanks so much. And then just interested in the sort of perception of yield versus volume. I understand, obviously, it's been a particularly challenging time for the New Zealand economy, but just where you're thinking with regard to yield increases versus, you know, obviously print subscribers off that 10%, and as Ari pointed out, the digital being somewhat weak? Yeah, so maybe firstly, just, you know, a little more colour on the print overall. If we adjust for the communities and, you know, I think with, you know, overall print advertising revenues were down about $2.7 million in the half, we obviously closed our communities, but we also bought in the Gisborne Herald and Sun Media. And the net of all of those was actually about $2.7 million. So print advertising revenues were actually flat year-on-year after those adjustments. So we're seeing really good advertiser support from a print product, and again, that comes back to those larger brands wanting to promote their brands, and they're seeing print as good for that. And then as we go through to readers, you know, we did see a 10% volume decline offset by a 4% margin improvement to give the net 6% subscription revenue in the period. So that's about what we've been seeing, you know, maybe 1% different, but again, we've got, as you will have seen, some dedicated teams now focused, and so, yeah, we're actually really pleased with the print business and its future potential. Yeah, thanks for that. And then on slide 17, you gave a good, you know, chart with the residential upgrades, the listings, et cetera. Obviously that uplift has slowed somewhat. How much of it do you think is just an economy perspective, or is there significantly more that these dedicated teams can do to uplift that? Yeah, I do think it's a mix of both. So one is, you know, economically, if you're not, you know, it's sort of a converse thing, isn't it? If you're not sure if you're going to sell, you should advertise. But you know, the mindset goes, I'm not sure if I'm going to sell, so I might not advertise and cost myself money. And so I think an improving market, we definitely would see more people marketing and advertising. And then with our dedicated team, we're definitely, you know, seeing improvements in that overall movement up. And so if I look through last year, for example, you know, H2 in Auckland was a 42% listings upgrade versus H1 this year at 45. We've seen a 1% improvement outside of Auckland. We've seen a 2% up, half on half, and we just need to keep improving that. Nice, thanks. And then on slide 21, obviously, you talked about your short-term listing upgrade targets, and so thanks for that extra colour on that. And you talked about by the end of FY26, if I listened right, would it then be sort of an FY27 sort of project to actually see yield improve once you've actually got that upgrade to sort of a target level you're happy with? Yeah, so our first priority is getting agents, obviously, using the product with their vendors. And so we don't want price to be a issue with that. So, you know, we're very focused on working with agents, having them selling our product, and then, you know, our objective would be for them to be buying the biggest product possible. Yeah, cool. And then just lastly, just with regard to obviously on slide 19, the print revenues, you said there was sort of a mix of things that are adjusted for that. So would you expect to see any rebound in the second half in that print one roof revenues? I think it'll substantially be come down to what the market's like. And, you know, recent days commentary is saying things are better from a sales perspective and listings coming to market. So that will be obviously the key driver. Actually, I'll just sneak in another one if I may as well. Obviously, just with an audio, it looked like a pretty solid result, and your revenue share doing well. Can you just talk to obviously the audience share is probably coming back a bit, but your revenue share is lifting. So media works in the last two or three sort of sector prints have actually done relatively well. So what's driving those two sort of divergent outcomes? Yeah, one of the things that we briefly talked about on the call is we've introduced a new station called iHeart Radio, iHeart Country New Zealand. So that's in Auckland and six regional. We actually don't get measurement of that. So we had to take one station off called Gold, and then we don't get measurement of iHeart Country until we've gone through two surveys, and that'll come in over time initially into Auckland, and then after the rest of the markets takes up to 12 months to be seen. So some of it's, you know, change in product, but some of it is we just need to do a better job on our music brands. We're certainly obviously doing very well from a talk perspective and continuing to see News Talk ZB even grow. Thanks much. And then just finally, just sort of to go to the 10 to 11 mil, FY25 CapEx estimate, what are the sort of priorities on at the moment for the second half? So priorities remain sort of accelerating the digital products that we've got and the investment we're making in those, making sure that, you know, the product specs are delivering, you know, what our audiences and customers want. Much appreciated, and again, well done in a tough environment. So cheers, back to you guys. Thanks. Thanks, James. We now have a question from Roger Coleman. Thanks, Roger. Good morning, gentlemen. Well, congratulations on a pretty good performance in the circumstances. Just on especially one group at plus 22 percent, seems to be above that of people like REA, Zillow and et cetera. I'm just wondering, given you're the challenger, what's going to happen to marketing spend at 3.7 million which you kept steady? You are the challenger. What are you going to do about increasing the pressure on Trade Me? And are you going to do that or stay roughly steady? Well, we definitely want to increase the pressure on Trade Me by continuing to grow our overall audience and, you know, use our people on the ground to grow revenue. The great news is, you know, we have access to nine out of 10 Kiwis across our own platforms. So when you look at that marketing spend, you know, that's really spend off our platforms because it doesn't include having to pay for our own. So, you know, we're really confident that we're doing good things to grow One Roof. And I know with, you know, a very focused One Roof advisory board, we're going to get some more insight and support for going harder and faster. Right. Do you allow private listings on the site already or you're going to? No, we don't. We don't currently, but it is definitely something being investigated. Right. And the next question I've got on the approximately $10 million left of the $12 million cost savings. Those cost savings were before Jim Grennan joined the board and the further reviews undertaking that being undertaken. Do you expect to find more than $10 million with the post AGM new people on the board? Well, I think, as you say, the $10 million was, I think, or the $12 million in total was announced at the ASM. The board is genuinely interested in, as you see, looking across all parts of the business, reviewing all of the business units. And so that's something that we continue to look at. What's the best way to put more people at the front line, whether it be editorially or sales, and having as strong back offices to support those people as possible. Right. Right. So just coming back to the $57 million to $59 million EBITDA target, which is up like $3 million to $5 million on last year with what looks like an $8 million cost reduction and more than steady revenues ahead. Is that $57 to $59 conservative or not? So, you know, it's where we think we're certainly planning to do as well as we can do it. A lot depends on what the second half economy is like, Roger. Yep. OK. And just the last thing which wasn't mentioned, and I viewed a couple of the video news services. How's that new video service going? Looks a little bit rough, but it looks pretty professional in the circumstances. What sort of revenue metrics have you got for that? Is it profitable? And what's the potential? Yeah. So, you know, thanks for the comments on it. From an on our own platform's perspective, as you can say, you know, we at times have improvements to make, whether it be from a technology or delivery of the actual show perspective. One thing we've been quite amazed with is off our platforms, the uptake. Something like a YouTube, for example, phenomenal uptake. So we are seeing really, really strong audience and huge engagement, amazing feedback we're getting from our audience on the programme. It is breakeven or slightly profitable, and we see opportunity to really grow that overall. Right. What's the cost base of that service? That cost base was netted, the incremental investment in that was netted into the net $4 million of cost savings at the beginning of the year when the newsroom was reshaped. Right. If I look at the TVNZ annual reports and assume that around 20 to 25% of the news hour, there's a good $25 to $35 million revenue base in news TV on linear TV. Have you scoped any sort of projection on, you know, what you've had is what you've just described as a pretty good audience response? Yeah, no, we definitely have scoped internally what we think the opportunity is. And I think, you know, the numbers you're talking are absolutely what, you know, news programmes would be bringing in on whether it be a TVNZ or a TV3 news network. And so that's an opportunity for us to ensure we grab that money. But at the same time, we can bundle it with other products to give a fully integrated, which gives us even more opportunity. Yeah. My last question is AI. Has the government moved and a new lobbying to protect your AI? Because it's so easy in New Zealand with only essentially two or three news services to identify the copyright likely protected sources that AI is using. So what's the progress with that? No, there's been no movement from a government perspective of really wanting to progress anything here. They definitely keep their eye on what's happening over the Tasman on your side of the world and have said that they would be a fast follower. Right. OK, that's it. Thank you very much. And pretty good. Very good performance. Thank you. Oh, I've got one other question. Right. The South Island's outperforming the North Island economically, you know, with its tourism and agricultural exports. Have you ever thought of probably targeting the Christchurch Press Group with an urban style operation? Certainly, you know, no current plans to go and open, for example, a print publication in the South Island. But I definitely think there's significant opportunity from our digital audience and our digital subscriptions to outperform in the South Island. Right. Right. OK, thank you. We've no other questions. Brilliant, everyone. Well, thank you for joining us today. You know, David and I are obviously around for any other catch ups. I know some of you have booked some of those already, but really appreciate your attendance today. And thank you for your ongoing support.