Half Year 2026 NZME Ltd Earnings Call

August 24, 2026

Kelly Gunn: Good morning, and welcome to New Zealand Media and Entertainment's 2026 H1 results webcast. My name is Kelly Gunn, and I am the GM of Communications at NZME. I will 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 Jo Hempstead, 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 will 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.

Speaker #2: Good morning, and welcome to New Zealand Media and Entertainment's 2026 half-year results webcast. My name is Kelly Dunn, and I'm the Dean of Communications at NZME.

Speaker #2: I'll be facilitating all questions at the end of today's presentation. Presenting on the call today are Michael Boggs, NZME’s Chief Executive Officer, and Jo Himstead, NZME’s Chief Financial Officer.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #3: Good morning, everyone. Thanks for joining us today. As Kelly said, I'm joined by our Chief Financial Officer, Jo Himstead, who will shortly take you through the financial results in detail.

Michael Boggs: Good morning, everyone. Thanks for joining us today. As Kelly said, I am joined by our Chief Financial Officer, Jo Hempstead, who will shortly take you through the financial results in detail. I will begin with the group results, the key developments across the business, and the market environment. Following Jo's review, I will return to cover the performance and the priorities of our audio business, publishing, and OneRoof, and then I will conclude with our outlook. The central message you will hear from us today is that during the H1, NZME has returned to revenue growth and delivered positive operating leverage. This is despite a trading environment that remains challenging. You will see that audio was the principal growth driver. Disciplined cost management lifted our operating margin, and stronger cash generation enabled us to materially reduce debt. At the end, Jo and I will be happy to take your questions.

Speaker #3: I'll begin with the group result, the key developments across the business, and the market environment. Following Jo's review, I'll return to cover the performance and the priorities of our audio business, Publishing, and OneRoof.

Speaker #3: And then I'll conclude with our outlook. The central message you'll hear from us today is that during the first half, NZME has returned to revenue growth and delivered positive operating leverage.

Speaker #3: This is despite a trading environment that remained challenging. You'll see that audio was the principal growth driver. Disciplined cost management lifted our operating margin, and stronger cash generation enabled us to materially reduce debt.

Speaker #3: At the end, Jo and I will be happy to take your questions. At a group level, on slide 3, the first half result shows growing earnings.

Michael Boggs: At the end, Jo and I will be happy to take your questions. At a group level on slide 3, the H1 result shows growing earnings, improving cash flow, and reducing debt. This is despite the economic conditions that remain tougher than we had expected at the start of the year. Our operating revenue and other income was NZD 167 million. That is up 1% or NZD 1.3 million on the H1 of last year. That growth was led by strong audio performance with softer results across other segments, moderating the overall increase. Operating EBITDA increased to NZD 26.5 million. That is up 11% or NZD 2.6 million on the prior year.

Michael Boggs: At a group level on slide 3, the H1 result shows growing earnings, improving cash flow, and reducing debt. This is despite the economic conditions that remain tougher than we had expected at the start of the year. Our operating revenue and other income was NZD 167 million. That is up 1% or NZD 1.3 million on the H1 of last year. That growth was led by strong audio performance with softer results across other segments, moderating the overall increase. Operating EBITDA increased to NZD 26.5 million. That is up 11% or NZD 2.6 million on the prior year. The improvement was supported by operating expenses being down 1%, reflecting the ongoing benefit of the cost-saving initiatives we implemented during early 2025. Statutory NPAT had improved from NZD 0.4 million loss in the H1 of 2025 to a NZD 6.6 million profit this year.

Speaker #3: Improving cash flow and reducing debt. This is despite the economic conditions that remained tougher than we'd expected at the start of the year. Our operating revenue and other income was $167 million.

Speaker #3: That's up 1%, or $1.3 million, on the first half of last year. That growth was led by strong audio performance, with softer results across other segments moderating the overall increase.

Speaker #3: Operating EBITDA increased to $26.5 million. That's up 11%, or $2.6 million, on the prior year. The improvement was supported by operating expenses being down 1%, reflecting the ongoing benefit of the cost-saving initiatives we implemented during early 2025.

Michael Boggs: The improvement was supported by operating expenses being down 1%, reflecting the ongoing benefit of the cost-saving initiatives we implemented during early 2025. Statutory NPAT had improved from NZD 0.4 million loss in the H1 of 2025 to a NZD 6.6 million profit this year.

Speaker #3: Statutory impact had improved from a $0.4 million loss in the first half of 2025 to a $6.6 million profit this year. And, as you'll see, free cash flow increased by $5.1 million to $7.3 million.

Michael Boggs: As you will see, free cash flow increased by NZD 5.1 million to NZD 7.3 million. Pleasingly, this allowed us to reduce net debt by NZD 13.9 million to NZD 19.4 million, and this represents a leverage ratio of just 0.5 times, sorry, 0.4 times our EBITDA. The boards declared a fully imputed interim dividend of 3 cents per share, and that will be paid on 23 September. As we update you today, you will see the results demonstrate an important distinction between the external conditions we are managing and the changes we are making within NZME. Some of the pressures we are seeing, including softness in parts of the advertising market and the slower recovery in the Auckland property, are cyclical. Our response, though, is structural. We are investing in athlete engagement, strengthening our digital products, bringing key technology capability in-house, and we are lowering fixed and variable costs right across the business.

Speaker #3: And pleasingly, this allowed us to reduce net debt by $13.9 million, to $19.4 million. And this represents a leverage ratio of just 0.5 times—sorry, 0.4 times our EBITDA.

Speaker #3: The board has declared a fully imputed interim dividend of 3 cents per share, which will be paid on the 23rd of September. As we update you today, you will see the results demonstrate an important distinction between the external conditions we are managing and the changes we are making within NZME.

Speaker #3: Some of the pressures we're seeing, including softness in parts of the advertising market and the slower recovery in the Auckland property market, are cyclical. Our response, though, is structural.

Speaker #3: We are investing in Aptly engagement, strengthening our digital products, bringing key technology capability in-house, and we're lowering fixed and variable costs right across the business.

Michael Boggs: We are investing in athlete engagement, strengthening our digital products, bringing key technology capability in-house, and we are lowering fixed and variable costs right across the business.

Speaker #3: We are not simply waiting for an economic recovery. We are continuously reshaping the business to deliver stronger and more resilient earnings through the cycle.

Michael Boggs: We are not simply waiting for an economic recovery. We are continuously reshaping the business to deliver stronger and more resilient earnings through the cycle. Slide 4 summarizes some of the key highlights across each of the three divisions, plus our progress on financial discipline. In audio, revenue grew 8% in the H1 with our market leading audio platforms growing faster than the market. This was anchored by New Zealand's number one talk brand, Newstalk ZB. We also signed a 10-year commitment with iHeartRadio, and our new iHeart app is increasing both digital revenue and its capability. We now have over 1.3 million podcast monthly active listeners, and digital radio total listening hours are up 8% year-on-year. In publishing, our digital publishing EBITDA grew 11%, with digital profit growth and tight cost control absorbing the print decline and returning publishing to a firmer footing.

Speaker #3: Slide 4 summarizes some of the key highlights across each of the three divisions, plus our progress on financial discipline. In Audio, revenue grew 8% in the half, with our market-leading audio platforms growing faster than the market.

Speaker #3: This was anchored by New Zealand's number one talk brand, Newstalk ZB. We also signed a 10-year commitment with iHeartRadio, and our new iHeart app is increasing both digital revenue and its capability. We now have over 1.3 million podcast monthly active listeners, and digital radio total listening hours are up 8% year on year.

Speaker #3: In Publishing, our digital publishing EBITDA grew 11%, with digital profit growth and tight cost control absorbing the print decline and returning Publishing to a firmer footing.

Speaker #3: We launched the New Zealand Herald app in June, built from the ground up for New Zealanders who want to make news their own. We'll talk more about that a little bit later.

Michael Boggs: We launched The New Zealand Herald app in June, built from the ground up for New Zealanders who want to make news their own. We will talk more on that a little bit later. In OneRoof, EBITDA grew 9%, with digital growth reflecting stronger upgrade volumes and better yield, while print, marketing, and selling costs were controlled to deliver the result. We also launched a new OneRoof app and brought in a new leadership team. On disciplined financial management, total advertising revenue grew 2%, underpinned by larger agency clients who have grown at a faster rate than our SME customers during the year. Total operating costs were 1% lower, reflecting continued operating discipline and net debt reduced by the NZD 13 million I referred to earlier. This has strengthened the balance sheet and gives us greater flexibility to fund future opportunities. Slide 5 sets the market context for the H1.

Speaker #3: In OneRoof, EBITDA grew 9%, with digital growth reflecting stronger upgrade volumes and better yield, while print, marketing, and selling costs were controlled to deliver the result.

Speaker #3: We also launched a new OneRoof app and brought in a new leadership team. And on disciplined financial management, total advertising revenue grew 2%, underpinned by large agency clients who have grown at a faster rate than our SME customers during the year.

Speaker #3: Total operating costs were 1% lower, reflecting continued operating discipline, and net debt reduced by the $13 million I referred to earlier. This has strengthened the balance sheet and gives us greater flexibility to fund future opportunities.

Speaker #3: Now, slide five—sorry, sets the market context for the half. The difficult economic environment has continued, and while we're seeing early signs of improving confidence, that has not yet shown up in market activity.

Michael Boggs: The difficult economic environment has continued, and while we are seeing early signs of improving confidence, that is not yet showing up in market activity. The economic settings and indicators are contributing to weak domestic demand and softer advertising conditions right across consumer categories. However, on a more positive note, both business and consumer confidence have been trending upward from their three-year lows as expectations for market conditions continue to improve. The total agency market ad spend is up 2% to over NZD 537 million for the H1 2026. That is on the back of stronger digital, which is up 4%, outdoor which is up 7%, and radio which is up 9%. While there are early signs of improving confidence, we are not relying on those indicators to drive our performance. The timing and strength of any economic recovery does remain uncertain.

Speaker #3: The economic settings and indicators are contributing to weak domestic demand and softer advertising conditions right across consumer categories. However, on a more positive note, both business and consumer confidence have been trending upward from their three-year lows, as expectations for market conditions continue to improve.

Speaker #3: The total agency market and spend is up 2%, to over $537 million for the first half of 2026. That's on the back of stronger digital, which is up 4%; outdoor, which is up 7%; and radio, which is up 9%.

Speaker #3: So while there are early signs of improving confidence, we're not relying on those indicators to drive our performance. The timing and strength of any economic recovery do remain uncertain.

Speaker #3: And as mentioned earlier, our focus is on the factors that we can control. Slide 6 highlights the strength of NZME's audience reach, with our platforms connecting with 9 out of 10 New Zealanders.

Michael Boggs: As mentioned earlier, our focus is on the factors that we can control. Slide 6 highlights the strength of NZME's audience reach with our platforms connecting with 9 out of 10 New Zealanders. This provides the foundation for continued growth in our digital revenue streams. In audio, radio revenue grew 8% and digital audio revenue grew 16%, reaching a radio audience of over 1.8 million and a digital audience of over 1 million. In publishing, digital subscription revenue grew 1% and core digital advertising revenue grew 1%. There is a large print audience of 1.23 million and a digital audience of nearly 2 million. In OneRoof, Auckland digital listing revenue grew 3%, while the rest of New Zealand digital listings revenue grew 13%. Again, there are large audiences across both print and our digital propositions.

Speaker #3: This provides the foundation for continued growth in our digital revenue streams. In audio, radio revenue grew 8%, and digital audio revenue grew 16%, reaching a radio audience of over 1.8 million and a digital audience of over 1 million.

Speaker #3: In publishing, digital subscription revenue grew 1%, and core digital advertising revenue grew 1%. There is a loss of a print audience, sorry, there is a large print audience of 1.23 million, and a digital audience of nearly 2 million.

Speaker #3: And in OneRoof, Auckland digital listing revenue grew 3%, while the rest of New Zealand digital listings revenue grew 13%. Again, there are large audiences across both print and our digital propositions.

Speaker #3: That reach is the foundation of the business. It's what allows us to build subscriptions, grow first-party data, and command yield in the advertising market.

Michael Boggs: That reaches the foundation of the business. It is what allows us to build subscriptions, grow first-party data, and command yield in the advertising market. Slide 7 shows that NZD 26.5 million of operating EBITDA was delivered across the divisions with 11% growth. As mentioned, audio revenue was the primary driver of the improved profitability, with audio EBITDA up 19% to NZD 11.9 million. The improvement in digital publishing profitability up 11% to NZD 6.3 million. This has offset the declines in print, which is down 7% to NZD 9 million. OneRoof digital revenues grew 4%, while below expectations, and were more than offset by a 15% print revenue decline. EBITDA still grew 9% to NZD 1.8 million for the H1. Corporate and other costs reduced by NZD 0.7 million, from NZD 3.1 million to NZD 2.4 million, also contributing to the overall EBITDA result.

Speaker #3: Slide 7 shows that $26.5 million of operating EBITDA was delivered across the divisions, with 11% growth. As mentioned, audio revenue was the primary driver of the improved profitability, with audio EBITDA up 19% to $11.9 million.

Speaker #3: The improvement in digital publishing profitability, up 11% to $6.3 million, has offset the declines in print, which is down 7% to $9 million.

Speaker #3: OneRoof digital revenues grew 4%, which was below expectations, and were more than offset by a 15% decline in print revenue. However, EBITDA still grew 9% to $1.8 million for the half.

Speaker #3: Corporate and other costs reduced by $0.7 million, from $3.1 million to $2.4 million, also contributing to the overall EBITDA result. So let me now hand over to Joe.

Michael Boggs: Let me now hand over to Jo, who will take you through the detail of our 2026 H1 financial results.

Speaker #3: We'll take you through the details of our 2026 half-year financial results.

Speaker #1: Thanks, Michael, and thank you to everyone joining us on the call today. Slide 9 shows our operating results for the six months ended 30 June 2026.

Jo Hempstead: Thanks, Michael, and thank you to everyone joining us on the call today. Slide 9 shows our operating results for the 6 months ended 30 June 2026. The H1 result shows the benefit of returning to revenue growth while maintaining cost discipline. Revenue growth was modest, but importantly, it flowed through to earnings, with operating EBITDA increasing at a faster rate than revenue. That is the operating leverage we have been focused on delivering. Advertising revenue grew 2% to NZD 118.6 million. A good outcome given the challenging economic conditions. Operating revenue grew by 1% overall, largely driven by a strong performance in audio. Operating expenses reduced by 1%, contributing to a strong EBITDA improvement. Operating NPAT of NZD 6.6 million for the H1 was an increase of NZD 3.2 million on the H1 of 2025, a positive improvement in a challenging market.

Speaker #1: The first half result shows the benefit of returning to revenue growth while maintaining cost discipline. Revenue growth was modest, but importantly, it flowed through to earnings.

Speaker #1: With operating EBITDA increasing at a faster rate than revenue, that is the operating leverage we have been focused on delivering. Advertising revenue grew 2% to $118.6 million—a good outcome given the challenging economic conditions.

Speaker #1: Operating revenue grew by 1% overall, largely driven by a strong performance in audio. Operating expenses reduced by 1%, contributing to a strong EBITDA improvement.

Speaker #1: Operating impact of $6.6 million for the half was an increase of $3.2 million on the first half of 2025, a positive improvement in the challenging market.

Speaker #1: Operating earnings per share were 3.5 cents, up from 1.8 cents. In addition to the improved operating result, the recovery in statutory impact also reflects lower non-recurring expenses incurred versus the prior period.

Jo Hempstead: Operating earnings per share were 3.5 cents, up from 1.8 cents. In addition to the improved operating result, the recovery in statutory NPAT also reflects lower non-recurring expenses incurred versus the prior period. Moving to slide 10, the revenue mix continues to shift. Audio was the clear growth driver in the H1, and we continue to focus on the quality of revenue across the portfolio. Audio advertising revenue grew 8%, continuing the gains we saw in the H2 of 2025. Total digital advertising was down NZD 1 million or 4%. The largest component of that was a NZD 0.6 million reduction in digital performance marketing revenue, which was a deliberate decision on our part to reduce our usage of low-margin third-party channels. Total reader revenue declined 3%, with reduced print subscriber revenue outpacing a 1% increase in digital subscriber revenue. Print subscriber volumes reduced 9%, offset by 5% yield gains.

Speaker #1: Moving to slide 10, the revenue mix continues to shift. Audio was the clear growth driver in the half, and we continue to focus on the quality of revenue across the portfolio.

Speaker #1: Audio advertising revenue grew 8%, continuing the gains we saw in the second half of 2025. Total digital advertising was down $1 million, or 4%.

Speaker #1: The largest component of that was a $0.6 million reduction in digital performance marketing revenue, which was a deliberate decision on our part to reduce our usage of low-margin third-party channels.

Speaker #1: Total reader revenue declined 3%, with reduced print subscriber revenue outpacing a 1% increase in digital subscriber revenue. Print subscriber volumes reduced 9%, offset by 5% yield gains.

Speaker #1: OneRoof revenue growth has slowed, with digital revenues constrained by the Auckland market and overall print revenues declining. Moving to costs, on slide 11, total operating expenses reduced by $1.3 million year on year.

Jo Hempstead: OneRoof revenue growth has slowed, with digital revenues constrained by the Auckland market and overall print revenues declining. Moving to costs on slide 11. Total operating expenses reduced by NZD 1.3 million year on year. The key point is that the savings delivered last year are now supporting the earnings result. At the same time, we have continued to absorb inflationary pressures and selectively reinvest in capability that supports future growth. Lower people expenses from the savings initiative implemented last year have been impacted by wage inflation, KiwiSaver changes, and planned reinvestment. That reinvestment includes in OneRoof engineering roles, Herald NOW, and selected Christchurch roles. Print and distribution expenses improved by 4% due to decreases in overall print volumes. Third-party fulfillment costs reduced 37% to NZD 1 million, which reflects the decrease in digital performance marketing revenue spoken to earlier.

Speaker #1: The key point is that the savings delivered last year are now supporting the earnings result. At the same time, we have continued to absorb inflationary pressures and selectively reinvest in capability that supports future growth.

Speaker #1: Lower people expenses from the savings initiative implemented last year have been impacted by wage inflation, KiwiSaver changes, and planned reinvestment. That reinvestment includes in OneRoof engineering roles, Herald Now, and selected Christchurch roles.

Speaker #1: Print and distribution expenses improved by 4% due to decreases in overall print volumes. Third-party fulfillment costs reduced 37% to $1 million, which reflects the decrease in digital performance marketing revenue spoken to earlier.

Speaker #1: Non-recurring expenses in the first half of 2025 include restructuring costs incurred as part of the $12 million of annualized savings initiatives. There were no non-recurring expenses in the first half of this year.

Jo Hempstead: Non-recurring expenses in the H1 of 2025 include restructuring costs incurred as part of the NZD 12 million of annualized savings initiatives. There were no non-recurring expenses in the H1 of this year. The waterfall chart on slide 12 highlights the key movements in operating expenses, showing the reinvestment in people costs and savings across the business that delivered a NZD 1.3 million improvement. The final quarter of the 2025 cost out savings have offset the impacts of wage inflation and KiwiSaver and allowed investment in our OneRoof engineering team, Herald NOW, and new Christchurch positions. Print savings of NZD 1.1 million driven by reduced volume have more than offset higher distribution costs impacted by fuel cost increases of NZD 0.1 million. Selling and marketing costs largely reflect an increase in the proportion of agency sales and the respective commission paid.

Speaker #1: The waterfall chart on slide 12 highlights the key movements in operating expenses, showing the reinvestment in people costs and savings across the business that delivered a $1.3 million improvement.

Speaker #1: The final quarter of the 2025 cost-out savings have offset the impacts of wage inflation and KiwiSaver, and allowed investment in our OneRoof engineering team, Herald Now, and new Christchurch positions.

Speaker #1: Print savings of $1.1 million, driven by reduced volume, have more than offset higher distribution costs impacted by fuel cost increases of $0.1 million. Selling and marketing costs largely reflect an increase in the proportion of agency sales and the respective commission paid.

Speaker #1: On slide 13, the balance sheet is in a much stronger position than a year ago. Lower net debt, improved earnings, and reduced interest costs have strengthened our financial flexibility and reduced risk in a still uncertain operating environment.

Jo Hempstead: On slide 13, the balance sheet is in a much stronger position than a year ago. Lower net debt, improved earnings, and reduced interest costs have strengthened our financial flexibility and reduced risk in a still uncertain operating environment. Net working capital, excluding cash, is NZD 3.8 million lower than June 2025, primarily due to a tax position that was a tax receivable position last year, as well as lower trade receivables. Net debt, as Michael indicated, has reduced to NZD 19.4 million with improved operating earnings, lower capital expenditure and interest costs, the absence of non-recurring cash outflows incurred last year. Net assets increased to NZD 93.3 million, and our leverage ratio has more than halved from 0.9 to 0.4. Slide 14 shows our cash flow results.

Speaker #1: Net working capital, excluding cash, is $3.8 million lower than June 2025, primarily due to a tax position that was a tax receivable position last year, as well as lower trade receivables.

Speaker #1: Net debt, as Michael indicated, has reduced to $219.4 million, with improved operating earnings, lower capital expenditure, and interest costs, and the absence of non-recurring cash outflows incurred last year.

Speaker #1: Net assets increased to $93.3 million, and our leverage ratio has more than halved from 0.9 to 0.4. Slide 14 shows our cash flow result.

Speaker #1: The important point is that the earnings improvement is $4.3 million higher than the first half of 2025, supported by strong operating performance and the absence of prior year non-recurring cash expenses.

Jo Hempstead: The important point is that the earnings improvement was NZD 4.3 million higher than the H1 2025, supported by strong operating performance and the absence of prior year non-recurring cash expenses. Capital expenditure was lower in the H1, with full year BAU capital expenditure still expected to be between NZD 10 million and NZD 12 million. After lease principal repayments of NZD 7.3 million, free cash flow was NZD 7.3 million, compared with NZD 2.2 million in the prior period. Slide 15 shows net debt finished the period NZD 13.9 million lower than June 2025. 12-month operating EBITDA pre NZ IFRS 16 was NZD 46.1 million, up from NZD 38.3 million, while our 12-month interest expense reduced to NZD 1.8 million. That has lifted our net interest cover to 26.1 times from 15.

Speaker #1: Capital expenditure was lower in the first half, with full-year BAU capital expenditure still expected to be between $10 million and $12 million. After lease principal repayments of $7.3 million, free cash flow was $7.3 million, compared with $2.2 million in the prior period.

Speaker #1: Slide 15 shows net debt finished the period $13.9 million lower than June 2025. 12-month operating EBITDA pre-NZF risk 16 was $46.1 million, up from $38.3 million, while our 12-month interest expense reduced to $1.8 million.

Speaker #1: That has lifted our net interest cover to 26.1 times from 15. As I've previously said, our leverage ratio of 0.4 is lower than the 0.9 last year and below our target range of 0.5 to 1 times EBITDA.

Jo Hempstead: As I've previously said, our leverage ratio of 0.4 is lower than the 0.9 last year and below our target range of 0.5 to 1 times EBITDA. The board has declared a fully imputed interim dividend of 3 cents per share, or NZD 5.6 million, payable on 23 September. That completes the overview of the group's financial results. The key financial takeaways are that NZME has delivered positive operating leverage with revenue growth and disciplined cost management, supporting improved earnings, stronger cash flow and lower debt, all while preserving flexibility for future investment and continuing to return capital to shareholders. I'll now hand you back to Michael, who will take you through the performance of each division.

Speaker #1: The board has declared a fully imputed interim dividend of 3 cents per share, or $5.6 million, payable on the 23rd of September. That completes the overview of the group's financial results.

Speaker #1: The key financial takeaways are that NZME has delivered positive operating leverage, with revenue growth and disciplined cost management supporting improved earnings, stronger cash flow, and lower debt.

Speaker #1: All while preserving flexibility for future investment and continuing to return capital to shareholders. I'll now hand you back to Michael, who will take you through the performance of each division.

Speaker #2: Great. Thanks, Jo. So let's now first turn to audio, which includes our digital audio platform, iHeartRadio, along with our radio stations and podcast network.

Michael Boggs: Great. Thanks, Jo. Let's now first turn to audio, which includes our digital audio platform, iHeartRadio, along with our radio stations and podcast network. Slide 18 shows that we've now delivered 15 consecutive months of year-on-year audio revenue growth. Revenue from the larger agency customers grew 15% year-on-year, and that's lifted our agency sourced revenue to 51% of total audio revenue. That's an increase of 3 percentage points. Non-agency revenue grew 2% year-on-year. This mixture does carry higher commission costs. Digital audio grew 16% on year to NZD 6.2 million. Digital audio total listening hours have grown 8%, and podcast downloads have increased 4% over the same period. Digital audio now represents 10% of our total audio revenue. That's up NZD 3.8 million three years ago. Slide 19 shows audio profitability up 19%, driven by strong revenue growth.

Speaker #2: Slide 18 shows that we've now delivered 15 consecutive months of year-on-year audio revenue growth. Revenue from the larger agency customers grew 15% year-on-year, and that's lifted our agency-sourced revenue to 51% of total audio revenue.

Speaker #2: That's an increase of 3 percentage points. Non-agency revenue grew 2% year-on-year. This mixture does carry higher commission costs. Digital audio grew 16% year-on-year to $6.2 million.

Speaker #2: Digital audio total listening hours have grown 8%, and podcast downloads have increased 4% over the same period. Digital audio now represents 10% of our total audio revenue.

Speaker #2: That's up 3.8 million from three years ago. Slide 19 shows audio profitability up 19%, driven by strong revenue growth. Operating revenue reflects the strength in the audio advertising market, with growth in both radio advertising and digital audio revenue.

Michael Boggs: Operating revenue reflects the strength in the audio advertising market, with growth in both radio advertising and digital audio revenue. People expenses increased year-on-year, driven by wage inflation, KiwiSaver changes, and a higher proportion of commercial people costs that have been supporting this revenue growth. Selling and marketing expenses increased 16%. This reflects the higher agency commissions as these agency sourced revenues remain strong, together with targeted marketing investment in key stations. Despite these higher operating costs, revenue growth more than offset expense increases and delivered an operating EBITDA of NZD 11.9 million. That's up NZD 1.9 million year-on-year. Slide 20 highlights the significant progress we've made in audio during the half and of the key priorities that will support continued growth from here. As noted, audio delivered a strong H1 performance, growing ahead of the market and reinforcing the strength of our audience and commercial position.

Speaker #2: People expenses increased year-on-year, driven by wage inflation, KiwiSaver changes, and a higher proportion of commercial people costs that have been supporting this revenue growth.

Speaker #2: Selling and marketing expenses increased 16%. This reflects the higher agency commissions, as these agency-sourced revenues remain strong, together with targeted marketing investment in key stations.

Speaker #2: So, despite these higher operating costs, revenue growth more than offsets expense increases and delivered an operating EBITDA of $11.9 million, which is up $1.9 million year-on-year.

Speaker #2: Slide 20 highlights the significant progress we've made in audio during the half, and outlines the key priorities that will support continued growth from here.

Speaker #2: As noted, audio delivered a strong first-half performance, growing ahead of the market and reinforcing the strength of our audience and commercial position. We completed a 10-year extension of our iHeartRadio partnership, which gives us long-term certainty and underpins our digital audio strategy.

Michael Boggs: We completed a 10-year extension of our iHeartRadio partnership, which gives us long-term certainty and underpins our digital audio strategy. We saw good momentum across our priority brands, including record audience growth for The Hits and continued strength from Coast on iHeartRadio. We are also investing behind targeted marketing growth opportunities for Kilian Canterbury, where local content, promotions, and marketing are being used to build audience and revenue over time. Our new product, iHeartCountry, is continuing to scale nationally, with commercials now introduced following its initial commercial free launch period. Looking forward, our focus is on sustained marketing behind The Hits and Coast brands, continued revenue share gains, and making iHeartRadio a default part of every media plan. Digital audio does remain an area where we see significant growth potential.

Speaker #2: We saw good momentum across our priority brands, including record audience growth for The Hits, and continued strength from Coast on iHeartRadio. We're also investing behind targeted market and growth opportunities, particularly in Canterbury, where local content, promotions, and marketing are being used to build audience and revenue over time.

Speaker #2: Our new product, iHeartCountry, is continuing to scale nationally, with commercials now introduced following its initial commercial-free launch period. So, looking forward, our focus is on sustained marketing behind the Hits and Coast brands, continued revenue share gains, and making iHeartRadio a default part of every media plan.

Speaker #2: Digital audio does remain an area where we see significant growth potential. Newstalk ZB and our podcast network will play an important role in lifting engagement through the second half of this year.

Michael Boggs: Newstalk ZB and our podcast network will play an important role in lifting engagement through the H2 of this year. Importantly, it does include coverage of the 2026 general election. Let us now cover our publishing division, which is focused on being New Zealand's leading news destination. Slide 22 summarizes some of the key operating metrics of the business. The New Zealand Herald app recorded total launches in the H1 of the year of 2026. These were 9% more than our nearest competitor over this period. App engagement is now at 57% across all users who visit the New Zealand Herald, with more time being spent in the app than on the web.

Speaker #2: Importantly, it does include coverage of the 2026 general election. Let's now cover our Publishing division, which is focused on being New Zealand's leading news destination.

Speaker #2: Slide 22 summarizes some of the key operating metrics of the business. The New Zealand Herald app recorded total launches in the first half of the year of 2026.

Speaker #2: These were 9% more than our nearest competitor over this period. App engagement is now at 57% across all users who visit the New Zealand Herald.

Speaker #2: With more time being spent in the app than on the web, the new app, which we've launched, is expected to drive further engagement and accelerate our digital performance.

Michael Boggs: The new app which we have launched is expected to drive further engagement and accelerate our digital performance. Total video views across all of our platforms have lifted 132%, with Ryan Bridge Today and Herald NOW adding a significant volume of content that is shared across multiple platforms. The new video module on the homepage and the Watch section of the newly released app have both made a strong contribution to the incremental views that we are seeing. Total subscriptions have lifted 6% to 250,000, with more New Zealanders embracing digital news. New Zealand Herald subscriptions are up 5% and BusinessDesk is up 18%. Average yield has fallen 12% as bundling increases, but we see that as an opportunity for yield growth into the future. 70% of subscribers are now digital only. That is up 13% to 176,000.

Speaker #2: Total video views across all of our platforms have lifted 132%, with Ryan Bridge Today and Herald Now adding a significant volume of content that's shared across multiple platforms.

Speaker #2: The new video module on the homepage, and the watch section of the newly released app, have both made a strong contribution to the incremental views that we're seeing.

Speaker #2: Total subscriptions have lifted 6% to 250,000, with more New Zealanders embracing digital news. New Zealand Herald subscriptions are up 5%, and BusinessDesk is up 18%.

Speaker #2: Average yield has fallen 12% as bundling increases, but we see that as an opportunity for yield growth in the future. Seventy percent of subscribers are now digital-only.

Speaker #2: That's up 13% to 176,000. Slide 23 shows stable profitability following tight cost control, despite inflationary pressures, and a reduced focus on commercializing low-yielding third-party digital revenues.

Michael Boggs: Slide 23 shows stable profitability following tight cost control, despite inflationary pressures and a reduced focus on commercializing low-yielding third-party digital revenues. Reader revenue decreased 3%, with slower digital subscription revenue growth of 1%, offset by continued print subscriber and retail outlet declines in print. Lower digital advertising revenue was driven largely by a reduction in the digital performance marketing revenue. This is the low margin third-party channels. However, core digital advertising was stable year-on-year. The print advertising revenue decline of 5% was better than our historical trends. Slide 24 separates the publishing business into its digital and print components. Digital publishing delivered operating EBITDA of NZD 6.3 million. That is up 11% year-on-year, and the margin improved to 13%. Print publishing delivered operating EBITDA of NZD 9 million, down 7% year-on-year with margin of 12%.

Speaker #2: Read-all revenue decreased 3%, with slower digital subscription revenue growth of 1%, offset by continued print subscriber and retail outlet declines in print. Lower digital advertising revenue was driven largely by a reduction in digital performance marketing revenue.

Speaker #2: This is the low-margin, third-party channels. However, core digital advertising was stable year-on-year. The print advertising revenue decline of 5% was better than our historical trends.

Speaker #2: Slide 24 separates the publishing business into its digital and print components. Digital publishing delivered operating EBITDA of $6.3 million. That's up 11% year-on-year, and the margin improved to 13%.

Speaker #2: Print publishing delivered operating EBITDA of $9 million, down 7% year-on-year, with a margin of 12%. While we continue to maximize the cash contribution from print, the growing contribution from the digital business reinforces the progress we're making in reshaping the publishing business.

Michael Boggs: While we continue to maximize the cash contribution from print, the growing contribution from the digital business reinforces the progress we are making in reshaping the publishing business. Slide 25 introduces The New Zealand Herald app. It offers a smarter, faster, and more personal way to stay informed with the news worth knowing. The latest version of this New Zealand Herald app was released at the end of June and was built from the ground up by our in-house digital team. It is a completely new ecosystem with new architecture, new features, and a new user experience. This includes a customizable news feed called My Herald, a dynamic bottom navigation bar, best practice accessibility, offline reading, and a dedicated watch section. In addition, it has got an integrated OneRoof property portal. New weather and listening sections will be coming soon.

Speaker #2: Slide 25 introduces the New Zealand Herald app. It offers a smarter, faster, and more personal way to stay informed with the news worth knowing.

Speaker #2: The latest version of the New Zealand Herald app was released at the end of June, and was built from the ground up by our in-house digital team.

Speaker #2: It's a completely new ecosystem with new architecture, new features, and a new user experience. This includes a customizable news feed called My Herald, a dynamic button navigation bar, best practice accessibility, offline reading, and a dedicated watch section.

Speaker #2: In addition, it has an integrated OneRoof property portal. New weather and listening sections will be coming soon. App users spend more than six times longer per day than web users, with overall engagement time per app user up 8% year-on-year.

Michael Boggs: App users spend more than six times more per day than web users, with overall engaged time per app user up 8% year on year. App users do read an average of five times more pages than web users. Slide 26 highlights that subscribed users are our most valuable digital audience. Although they are the smallest cohort, they generate 54% of our digital revenue. That comprises 34% from subscription payments and a further 20% from advertising that is delivered to these subscribers. As you can imagine, growing subscribers is a key step in driving engagement and leveraging first-party data to maximize advertising revenue, obviously alongside subscriptions. Digital subscriptions remain an area of emphasis to embed ongoing recurring revenues. Strong contributors to the increase in digital subscriptions over the last few years have been The Listener, which is up 58%, Q25, and Viva Premium, which is up 61% versus through last year.

Speaker #2: App users do read an average of five times more pages than web users. Slide 26 highlights that subscribed users are our most valuable digital audience.

Speaker #2: Although they are the smallest cohort, they generate 54% of our digital revenue. That comprises 34% from subscription payments, and a further 20% from advertising that's delivered to these subscribers.

Speaker #2: As you can imagine, growing subscribers is a key step in driving engagement and leveraging first-party data to maximize advertising revenue, alongside subscriptions. Digital subscriptions remain an area of emphasis to embed ongoing recurring revenue.

Speaker #2: Strong contributors to the increase in digital subscriptions over the last few years have been The Listener, which is up 58% and 25%, and Viva Premium, which is up 61% versus very last year.

Michael Boggs: Strong contributors to the increase in digital subscriptions over the last few years have been The Listener, which is up 58%, Q25, and Viva Premium, which is up 61% versus through last year.

Speaker #2: The New Zealand Herald has still seen ongoing growth of 5% year-on-year, and BusinessDesk saw growth of 18% year-on-year. Much of this growth has come from bundling subscriptions together for individual users. While this reduces the average yield, it does deliver increased engagement across multiple brands.

Michael Boggs: New Zealand Herald has still seen ongoing growth of 5% year on year, and BusinessDesk saw growth of 18% year on year. Much of the growth has come from bundling subscriptions together for individual users. While this reduces the average yield, it does deliver increased engagement across multiple brands. Therefore, this does offer the potential of lower churn and improved yield as we move forward. Print subscription revenue has fallen 4%, despite a 9% volume decline over the H1 2026. Disciplined pricing has continued to lift per copy, with yield up by 5%. Slide 27 highlights the progress we are making in publishing, where we are continuing to manage print for cash while scaling the digital business. Print remains an important contributor, and we have slowed the rate of revenue decline, reduced churn to a four-year low, and we have continued to optimize the network to protect the cash generation.

Speaker #2: Therefore, this does offer the potential of lower churn and improved yield as we move forward. Print subscription revenue has fallen 4%, despite a 9% volume decline over the first half of '26.

Speaker #2: Disciplined pricing has continued to lift per-copy yield, actually, with yield up by 5%. Slide 27 highlights the progress we're making in publishing, where we're continuing to manage print for cash while scaling the digital business.

Speaker #2: Print remains an important contributor, and we have slowed the rate of churn to a four-year low. We've continued to optimize the network to protect cash generation.

Speaker #2: At the same time, our digital growth engines are strengthening. There is strong video engagement from Ryan Bridge Today and Herald Now. There's continued momentum in Business Desk, and further opportunities to improve yield through personalized pricing and a new paywall.

Michael Boggs: At the same time, our digital growth engines are strengthening. There is strong video engagement from Ryan Bridge Today and Herald NOW. There is continued momentum in BusinessDesk and further opportunities to improve yield through personalized pricing and a new paywall. The performance of our newsrooms also remain a key differentiator. With eight wins at the New Zealand Media Awards, this reinforces the quality and reach of our journalism. Looking ahead, the acquisition of smaller and more efficient print plant as a replacement for our aging Ellerslie equipment will enable us to rightsize our footprint and deliver meaningful annual savings over time. We are also investing in BusinessDesk, including a new website and app, and expanding our premium content offer. Video will continue to be a major growth priority. Ryan Bridge Today and Herald NOW extending onto Three and helping take our journalism to new audiences beyond just our own platforms.

Speaker #2: The performance of our newsrooms also remains a key differentiator. With eight wins at the New Zealand Media Awards, this reinforces the quality and reach of our journalism.

Speaker #2: Looking ahead, the acquisition of a smaller and more efficient print plant as a replacement for our aging equipment will enable us to right-size our footprint and deliver meaningful annual savings over time.

Speaker #2: We're also investing in business desks, including a new website and app, and expanding our premium content offering. Video will continue to be a major growth priority.

Speaker #2: Ryan Bridge today, and Herald Now, now extending onto TV3 and helping take our journalism to new audiences beyond just our own platforms. And with the 2026 election ahead, New Zealand Herald is poised to deliver comprehensive political coverage through major covering moments, debates, events, and live video programming.

Michael Boggs: Ryan Bridge Today and Herald NOW extending onto Three and helping take our journalism to new audiences beyond just our own platforms.

Michael Boggs: With the 2026 election ahead, New Zealand Herald is poised to deliver comprehensive political coverage through major coverage moments, debates, events, and live video programming. This will be in conjunction with Newshub NZ. Turning to OneRoof, our property platform, slide 29 shows a reset of the leadership team and technology stack is delivering renewed growth. There were 60,000 new listings across New Zealand in the H1 2026, with new market listings up 3% year on year, although days to sell remains above historical averages. In Auckland, stock has returned as market listings are up 7%, but properties are taking longer to sell and the median sale price is flat. This is keeping vendors cautious on their marketing investment, though OneRoof Auckland residential listings revenue still grew 3%. Across the rest of New Zealand, upgrade rates are up 140 basis points and average yield is up 8%.

Speaker #2: This will be in conjunction with Newstalk ZB. Now, turning to OneRoof, our property platform—slide 29 shows a reset of the leadership team and technology stack, which is delivering renewed growth.

Speaker #2: There were 60,000 new listings across New Zealand in the first half of 2026, with new market listings up 3% year-on-year, although days to sell remain above historical averages.

Speaker #2: In Auckland, stock has returned as market listings are up 7%, but properties are taking longer to sell and the median sale price is flat.

Speaker #2: This is keeping vendors cautious on their marketing investment. Though OneRoof Auckland residential listings revenue still grew 3%. Across the rest of New Zealand, upgrade rates are up 140 basis points, and average yield is up 8%.

Speaker #2: This takes the rest of New Zealand to 30 to 36% of total OneRoof residential listings revenue, and it delivered listings revenue growth of 13% year-on-year.

Michael Boggs: This takes rest of New Zealand to 36% of total OneRoof residential listings revenue, and it delivered listings revenue growth of 13% year on year. Slide 30 shows that despite significant leadership change, digital revenues and EBITDA did deliver. Digital advertising revenue increased NZD 0.4 million, up 4%, but did not fully recover the NZD 0.7 million or 15% decline print advertising. This is where vendors remain the most cost-conscious. As just noted, Auckland revenue was soft as weaker conversion was cushioned by improvements in listings volume and yield. Regional performance was strong, with growth in conversion and yield outweighing the lower levels of new listings. People costs increased NZD 0.2 million. This reflects the continued investment in leadership, sales, customer relationship management, engineering, product, and design capability. Our print and distribution costs reduced NZD 0.3 million, broadly in line with the lower print activity.

Speaker #2: Now, slide 30 shows that despite significant leadership change, digital revenues and EBITDA did deliver growth. Digital advertising revenue increased $0.4 million, up 4%, but did not fully recover the $0.7 million or 15% decline in print advertising.

Speaker #2: This is where vendors remain the most cost-conscious. As just noted, Auckland revenue was soft, as weaker conversion was cushioned by improvements in listings volume and yield.

Speaker #2: Regional performance was strong, with growth in conversion and yield outweighing the lower levels of new listings. People costs increased $0.2 million; this reflects the continued investment in leadership, sales, customer relationship management, engineering, product, and design capability.

Speaker #2: Our print and distribution costs reduced by $0.3 million, broadly in line with the lower print activity. Selling and marketing costs reduced by half a million, a deliberate choice as we focused our efforts on improving the quality of our technology and content to engage the audience across all of our multiple platforms.

Michael Boggs: Selling and marketing costs reduced by half a million, a deliberate choice as we focused our efforts on improving the quality of our technology and content to engage the audience across all of our multiple platforms. Slide 31 shows the new OneRoof app that makes it easier to navigate all things property, all in one place. The OneRoof app had strong growth during the half, with sustained month-on-month audience growth and engagement holding firm as the audience scaled. This was supported by this latest major app release earlier this year. Features recently launched give the new users a reason to return in their first 30 days, including a new app with refreshed design, more estimate visibility, more filters for easier search, and more detailed data on every listing. Our monthly app users grew 54%. They increased in every month across the H1 2026.

Speaker #2: Slide 31 shows the new OneRoof app that makes it easier to navigate all things property, all in one place. The OneRoof app saw strong growth during the half, with sustained month-on-month audience growth and engagement holding firm as the audience scaled.

Speaker #2: This was supported by this latest major app release earlier this year. Features recently launched give new users a reason to return in their first 30 days.

Speaker #2: Including a new app with refreshed design, more estimate visibility, more filters for easier search, and more detailed data on every listing. Our monthly app users grew 54%.

Speaker #2: They increased in every month across the first half of 2026. Our daily active users grew 53%, with daily engagement rates holding steady. There was a 24% lift in the number of users viewing property listings every day.

Michael Boggs: Our daily active users grew 53%, with daily engagement rates holding steady. There was a 24% lift in the number of users viewing property listings every day, and seven in 10 monthly users returned the following month. This was sustained through the H1 despite the rapid audience growth. Looking ahead, we continue to sharpen the app experience and core conversion pathways to deepen the engagement and drive more value to our audiences. Let's move to slide 32. OneRoof's H1 revenue performance was below our expectations, particularly in Auckland. During the half, we did reset the leadership team. We brought engineering capability in-house, and we strengthened the app and product platform. The benefits of these changes are not yet fully reflected in revenue. The new OneRoof app's already showing encouraging momentum with monthly active users up 54% since January and our engagement holding firm as that audience scales.

Speaker #2: And 7 in 10 monthly users returned the following month. This is sustained through the first half, despite the rapid audience growth. So looking ahead, we continue to sharpen the app experience and core conversion pathways to deepen the engagement and drive more value to our audiences.

Speaker #2: Let's move to slide 32. OneRoof's first half revenue performance was below our expectations, particularly in Auckland. During the half, we did reset the leadership team.

Speaker #2: We brought engineering capability in-house, and we strengthened the app and product platform. The benefits of these changes are not yet fully reflected in revenue.

Speaker #2: The new OneRoof apps are already showing encouraging momentum, with monthly active users up 54% since January, and our engagement holding firm as that audience scales.

Speaker #2: Market conditions do remain mixed. The regions are leading growth, while Auckland is suffering as properties take longer to sell and vendors remain cautious.

Michael Boggs: Market conditions do remain mixed. The regions are leading growth while Auckland is suffering as properties take longer to sell and their vendors remain cautious. Digital does now represent 71% of OneRoof revenue, reinforcing the shift in the business model. Looking ahead, there is further opportunity as market confidence improves, particularly through higher upgrade penetration, stronger premium product adoption, and more disciplined packaging and pricing. With this more experienced leadership team, a stronger app and product platform, and a largely fixed cost base, OneRoof is in a strong position to convert future market recovery into margin growth. Slide 34 shows corporate and other costs are lower year on year by 18%. Corporate and other includes the unallocated costs associated with the group management and governance together with the company's events business. Other expenses included NZD 300,000 of savings from insurance, professional fees, travel, and entertainment costs.

Speaker #2: Digital now represents 71% of OneRoof revenue, reinforcing the shift in the business model. Looking ahead, there is further opportunity as market confidence improves, particularly through higher upgrade penetration, stronger premium product adoption, and more disciplined packaging and pricing.

Speaker #2: With this more experienced leadership team, a stronger app and product platform, and a largely fixed cost base, OneRoof is in a strong position to convert future market recovery into margin growth.

Speaker #2: Slide 34 shows corporate and other costs are lower year-on-year by 18%. Corporate and other includes the unallocated costs associated with Group management and governance, together with the company's events business.

Speaker #2: Other expenses included $300,000 of savings from insurance, professional fees, travel, and entertainment costs. Slide 35 shows improved performance, delivering operating EBITDA growth of 11%.

Michael Boggs: Slide 35 shows improved performance delivering the operating EBITDA growth of 11%. As we have talked about, audio was the principal earnings growth driver. Digital publishing improved profitability. Print remained an important cash contributor despite its structural decline. OneRoof grew EBITDA despite softer revenues. Together with lower corporate costs, that delivered an 11% growth in group operating EBITDA. NPAT improved from a NZD 400,000 loss in the H1 2025 to a NZD 6.6 million profit, also supported by lower depreciation, interest costs, and non-recurring expenses. I would like to move to slide 36, where we highlight the next phase of our cost-out program. This remains central to building our resilience, and it creates capacity to invest for future growth.

Speaker #2: As we've discussed, audio was the principal earnings growth driver. Digital publishing improved profitability, and print remained an important cash contributor despite its structural decline.

Speaker #2: And OneRoof grew EBITDA despite softer revenue. Together with lower corporate costs, that delivered an 11% growth in group operating EBITDA. Impact improved from a 400,000 dollar loss in the first half of 2025 to a 6 million dollar 6.6 million dollar profit also supported by lower depreciation interest costs and non-recurring expenses.

Speaker #2: I'd like to move to Slide 36, where we highlight the next phase of our cost-out program. This remains central to building our resilience.

Speaker #2: And it creates capacity to invest for future growth. The major print plant investment will give us a right-sized, more efficient production footprint, with up to $15 million investment over 2026 and 2027.

Michael Boggs: The major print plant investment will give us a right-sized, more efficient production footprint with up to NZD 15 million investment over 2026 and 2027, with an expected payback within three years of becoming operational. The savings are expected to build from around NZD 3 to NZD 5 million in 2028 to around NZD 7 million in 2029. We are also progressing efficiency initiatives across the business. We are using automation and AI to structurally lower the cost base and improve the speed and efficiency of manual workflows. Those initiatives are expected to deliver NZD 4 million of annualized savings from the Q4 of this year, with a further NZD 3 million of annualized savings to be delivered in the H1 2027. In addition, we have completed negotiations on our Central Auckland lease. It is on material improved terms, but it is subject to a landlord shareholder approval.

Speaker #2: With an expected payback within three years of becoming operational, the savings are expected to build from around $3 to $5 million in 2028 to around $7 million in 2029.

Speaker #2: We are also progressing efficiency initiatives across the business. We're using automation and AI to structurally lower the cost base and improve the speed and efficiency of manual workflows.

Speaker #2: Those initiatives are expected to deliver $4 million of annualized savings from the fourth quarter of this year, with a further $3 million of annualized savings to be delivered in the first half of 2027.

Speaker #2: In addition, we've completed negotiations on our central Auckland lease. It's on materially improved terms, but it is subject to landlord shareholder approval. This will lower our fixed occupancy costs, while retaining flexibility over space and term as we move forward.

Michael Boggs: This will lower our fixed occupancy costs while retaining flexibility over space and term as we move forward. While these lease changes have not been reflected in the H1 accounts, the cash flow benefit will be backdated to November 2025 once it has been approved. IFRS 16 accounting will reduce reported NPAT in the medium term. Together, these initiatives provide a clear pathway to a lower, more flexible cost base and improved long-term earnings resilience. Slide 37 again brings together the major initiatives that are reshaping the next phase of NZME's performance. The common theme across the business is that we are investing in the apps, platforms, products, and capabilities that improve audience engagement, deepen our customer relationships, and strengthen our long-term earnings quality. In audio, our priority is to keep building on our market-leading position by growing digital audio, strengthening iHeartRadio, and converting the strong audience into revenue momentum.

Speaker #2: While these lease changes have not been reflected in the first-half accounts, the cash flow benefit will be backdated to November 2025 once it has been approved.

Speaker #2: SOFR 16 accounting will reduce reported impact in the medium term. Together, these initiatives provide a clear pathway to a lower, more flexible cost base and improved long-term earnings resilience.

Speaker #2: Slide 37 again brings together the major initiatives that are reshaping the next phase of NZME's performance. The common theme across the business is that we're investing in the apps, platforms, products, and capabilities that improve audience engagement, deepen our customer relationships, and strengthen our long-term earnings quality.

Speaker #2: In audio, our priority is to keep building on our market-leading position by growing digital audio, strengthening iHeartRadio, and converting the strong audience into revenue momentum.

Speaker #2: In publishing, that means continuing to modernize the New Zealand Herald experience, growing premium digital products, extending our journalism further into video and new distribution channels, while also reshaping print for a more efficient future.

Michael Boggs: In publishing, that means continuing to modernize the New Zealand Herald experience, growing premium digital products, extending our journalism further into video and new distribution channels, while also reshaping print for a more efficient future. In OneRoof, the focus is on building a stronger product platform and operating model so the business is better positioned to capture upside when property market conditions improve. Across the group, technology and AI are important enablers, helping us lift productivity, reduce manual work, and improve our speed to market. At the same time, we are continuing to lower fixed costs through structural initiatives like property savings and print efficiencies. Taken together, these initiatives are about making NZME more digital, more efficient, and more resilient, while preserving the strength of our core brands and cash-generating businesses. Let's now move to the outlook for NZME.

Speaker #2: In OneRoof, the focus is on building a stronger product platform and operating model so the business is better positioned to capture upside when property market conditions improve.

Speaker #2: Across the group, technology and AI are important enablers, helping us lift productivity, reduce manual work, and improve our speed to market. At the same time, we're continuing to lower fixed costs through structural initiatives like property savings and print efficiencies.

Speaker #2: Taken together, these initiatives are about making NZME more digital, more efficient, and more resilient, while preserving the strength of our core brands and generating cash-generating businesses.

Speaker #2: So let's now move to the outlook for NZME. The first six months focused on returning revenue to growth, while at the same time maintaining tight cost discipline.

Michael Boggs: The first 6 months focused on returning revenue to growth while at the same time maintaining tight cost discipline. Audio underpinned our 2% H1 advertising revenue growth, and the ongoing cost discipline positions us to convert the recovery into margin. We do, however, expect the trading environment to remain volatile, with consumer confidence still soft and discretionary spending constrained as households continue to absorb higher living costs and mortgage rates. We do expect any recovery to remain gradual, with the potential for a modest improvement in demand through the H2 of 2026 and further momentum into 2027. We will continue to focus on controllable levers to support our earnings resilience and fund future growth. We are also actively working to renew or replace the Google content supply agreement that concludes in December 2026 while expanding these content licensing and AI monetization opportunities with other global digital platforms.

Speaker #2: Audio underpinned our 2% first-half advertising revenue growth, and ongoing cost discipline positions us to convert the recovery into margin. We do, however, expect the trading environment to remain volatile.

Speaker #2: With consumer confidence still soft and discretionary spending constrained, as households continue to absorb higher living costs and mortgage rates, we do expect any recovery to remain gradual.

Speaker #2: With the potential for a modest improvement in demand through the second half of 2026, and further momentum into 2027, we will continue to focus on controllable levers to support our earnings resilience and fund future growth.

Speaker #2: We're also actively working to renew or replace the Google content supply agreement that concludes in December 2026, while expanding these content licensing and AI monetization opportunities with other global digital platforms.

Speaker #2: From a capital management perspective, the strength of our balance sheet means NZME is well positioned to deliver strong dividend returns, while continuing to invest selectively in OneRoof, digital subscriptions, and video, along with technology and AI to deliver productivity gains right across the business.

Michael Boggs: From a capital management perspective, the strength of our balance sheet means NZME is well-positioned to deliver strong dividend returns while continuing to invest selectively in OneRoof, digital subscriptions, and video, along with technology and AI to deliver productivity gains right across the business. Subject to trading conditions in the H2 and assuming no material deterioration in market conditions, we expect the full year 2026 operating EBITDA to be ahead of what we achieved in 2025. Jo and I are now happy to take your questions.

Speaker #2: Subject to trading conditions in the second half, and assuming no material deterioration in market conditions, we expect full-year 2026 operating EBITDA to be ahead of what we achieved in 2025.

Speaker #2: Joe and I are now happy to take your questions.

Speaker #1: Thank you, Michael and Joe. We'll now open the webcast for any questions from shareholders and analysts. If you'd like to ask a question, please click 'Raise Hand' on your screen, and I will unmute your microphone for you.

Kelly Gunn: Thank you, Michael and Jo. We will now open the webcast for any questions from shareholders and analysts. If you would 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. If you have another question to ask after that, can we ask that you rejoin the queue so we can give others the opportunity to speak. Our first question is actually an online question, and it is from Chris Scarpatto: Given the low gearing position and the rather subdued share price, why is there hesitancy to implement a share buyback program?

Speaker #1: Please can we ask that you ask just one initial question and one follow-up if you wish, to ensure everyone gets an opportunity. If you have another question to ask after that, can we ask that you rejoin the queue so we can give others the opportunity to speak.

Speaker #1: Our first question is actually an online question, and it's from Chris Scappato. Given the low gearing position and the rather subdued share price, why is there hesitancy to implement a share buyback program?

Speaker #2: Hi there, Chris. Good morning to you. It's probably not something for me to answer, and more something from a board perspective. Capital management does feature heavily in the discussions of the board.

Michael Boggs: Hi there, Chris. Good morning to you. It's probably not something for me to answer and something more from a board perspective. Capital management does feature heavily in the discussions of the board. As you will have just seen, we have invested or will be investing up to NZD 15 million in a smaller, more efficient print plant. I think at the moment, the board does think it's important to continue to look for opportunities to improve performance. As I say, probably something more for them to ask at this stage.

Speaker #2: As you will have just seen, we have invested, or will be investing, up to $15 million in the smaller, more efficient print plant.

Speaker #2: And so, I think at the moment, the Board does think it's important to continue to look for opportunities to improve performance. But as I say, probably something more for them to ask her at this stage.

Speaker #1: And we have another couple of questions online from Yuri Sells—and I hope I've got that pronunciation right. Do you see more price increase potential for Herald print subscriptions to compensate subscriber losses in the next two to three years?

Kelly Gunn: We have another couple of questions online from Yuri Sells, and I hope I've got that pronunciation right. Do you see more price increase potential for Herald print subscriptions to compensate subscriber losses in the next 2 to 3 years?

Speaker #2: Yes, that's right. We certainly do. As you will have seen over recent years, our loss of subscribers and printers has been about 8 to 9 percent per annum.

Michael Boggs: Yes, that's right. We certainly do. As you will have seen over recent years, our loss of subscribers and printers been about 8% to 9% per annum, and we've been substantially offsetting that by half or sometimes more than half by yield increases. We are seeing strong retention. People are continuing to enjoy the content that's produced. With that, we do continue to see the opportunity to increase yield and pricing.

Speaker #2: And we've been substantially offsetting that by half, or sometimes more than half, through yield increases. So we are seeing strong retention. People are continuing to enjoy the content that's produced.

Speaker #2: And so, with that, we do continue to see the opportunity to increase yield and pricing.

Speaker #1: And then another one from Yuri. Shall we expect your lease payments to be roughly flat in the next one to two years?

Kelly Gunn: Another one from Yuri. Shall we expect your lease payments to be roughly flat in the next 1 to 2 years?

Speaker #2: Subject to the negotiations, as I say, having been concluded, they still need the building landlord's shareholder approval. We would expect actual leases to reduce.

Michael Boggs: Subject to the negotiations, as I say, have been concluded. They still need the building landlord shareholder approval. We would expect actually leases to reduce. That is something we will be able to give an update once we have had a confirmation of that.

Speaker #2: But that's something we'll be able to give an update on once we've had confirmation of that.

Kelly Gunn: And another one from Chris Scarpatto. How is OneRoof comparing relative to Trade Me if they become more aggressive on pricing given their push for a potential sale/IPO?

Speaker #1: And another one from Chris Scappato. How is OneRoof comparing relative to Trade Me? Have they become more aggressive on pricing, given their push for a potential sale or IPO?

Speaker #2: Yes, we definitely are seeing Trade Me continue to be more aggressive on pricing, and specifically at some of their higher-end packages. So, often seeing double-digit percentage increases.

Michael Boggs: Well, we definitely are seeing Trade Me continually more aggressive on pricing, and specifically at some of their higher-end packages. So often seeing double-digit percentage increases. I think what that will see more and more is real estate agents and vendors deciding that they do not actually need those packages on Trade Me, and it actually gives us the opportunity to sell higher packages of our own and get higher penetration. So it really is, I think vendors going, "I have got a fixed budget I want to spend. I will downgrade the package that I am on Trade Me, and I will bring in a quality audience from NZME." We are consistently told that OneRoof does deliver different inquiries to Trade Me. I think you will find that most people would go to the Trade Me site. Therefore, being on a higher package does not necessarily mean they get more inquiry.

Speaker #2: I think that what we'll see more and more is real estate agents and vendors deciding that they don't actually need those packages on Trade Me.

Speaker #2: And it actually gives us the opportunity to sell higher packages of our own and get higher penetration. So it really is, I think, vendors going, "I've got a fixed budget I want to spend."

Speaker #2: I'll downgrade the package that I'm on, TradeMe, and I'll bring in a quality audience from NZME. We are consistently told that OneRoof does deliver different inquiries to TradeMe.

Speaker #2: I think you'll find that most people would go to the Trade Me site. So, therefore, being on a higher package doesn't necessarily mean they get more inquiry.

Michael Boggs: Therefore, being on a higher package does not necessarily mean they get more inquiry. Therefore, by putting incremental investment into OneRoof, we can bring different audience and a different type of inquiry.

Speaker #2: So, therefore, by putting incremental investment into OneRoof, we can bring in a different audience and a different type of inquiry.

Michael Boggs: Therefore, by putting incremental investment into OneRoof, we can bring different audience and a different type of inquiry.

Speaker #1: We don't have any other questions.

Kelly Gunn: We don't have any other questions.

Speaker #2: We're just looking to see if we've got one other question.

Michael Boggs: We're just looking to see if we've got one other question.

Kelly Gunn: Apologies. James Lindsay has got his hand up. James, please go ahead.

Speaker #1: Apologies. James Lindsay. He's got his hand up, so—James, please go ahead.

Speaker #3: Thanks, Joe. And good morning, Michael, as well. Well done. Not a particularly easy market to be operating in. First question, just on the solid audio performance.

James Lindsay: Thanks, Jo, and good morning, Michael as well. Well done. Not a particularly easy market to be operating in. First question, just on the solid audio performance, so congratulations there. You've obviously been picking up revenue share over now a number of years. Just interested in what you think's driving that more specifically.

Speaker #3: So congratulations there. You've obviously been picking up revenue share over now a number of years. Just interested in what you think's driving that, more specifically.

Speaker #2: Yeah, I think there's a couple of things driving it. And hi there, James. One of the things is we do have the number one station, and you talked at B.

Michael Boggs: I think there's a couple of things driving it. Hi there, James. One of the things is we do have the number one station in Newstalk ZB. Even in a most recent survey, we've seen Newstalk ZB's audience grow again. I think what we're finding is most advertisers want to be associated with that brand. It's a very focused and quality audience that certainly keeps you up to date with what's happening. I think the election coming will give it more potential, both from an audience and revenue perspective. We are investing in a number of brands, as I outlined, across the rest of the country. A big focus for us, which we've started in H1 of this year, is a focus on the Canterbury region.

Speaker #2: And even in a most recent survey, we've seen these audiences grow again. So I think what we're finding is most advertisers want to be associated with their brand.

Speaker #2: It's a very focused and quality audience. It certainly keeps you up to date with what's happening, and I think the election coming will give it more potential, both from an audience and revenue perspective.

Speaker #2: We are investing in a number of brands, as I outlined, across the rest of the country. A big focus for us, which we've started in the first half of this year, is a focus on the Canterbury region.

Speaker #2: Obviously, you'll know that Canterbury is now the second largest—or Christchurch is the second largest city in Canterbury, the second largest region. So that's an area of focus for us, specifically around New Zealand Herald Digital.

Michael Boggs: Obviously, you'll know that Canterbury is now the second largest, or Christchurch is the second largest city, and Canterbury the second largest region. That's an area of focus for us, specifically around New Zealand Herald digital, and audio, and OneRoof as areas we haven't had print publications in the past. I think discipline focus on where we're growing our audience, and then certainly making sure we package up all of our brands utilizing the number one station to ensure we can grow our share.

Speaker #2: And audio. And OneRoof is in areas where we haven't had print publications in the past. So I think disciplined focus on where we're growing our audience.

Speaker #2: And then certainly making sure we package up all of our brands, utilizing the number one station to ensure we can grow our share.

Speaker #3: Nice one. Thanks so much. You mentioned—just with regard to the election—it reminds us again, in history, what has that spurred on for you?

James Lindsay: Nice one. Thanks so much. You mentioned just with regard to the election, just remind us again, in history, what has that spurred on to you?

Speaker #2: Yeah, there are a few to's and fro's. So sometimes we find that some of our advertisers don't want to be around it because it gets a little bit noisy.

Michael Boggs: Yeah. There is a few twos and pros. Sometimes we find that some of our advertisers don't want to be around it because it gets a little bit noisy. Then we have others who absolutely want to be around it because they see audience growth in that period of time. The other thing that happens is we do get some election advertising. We're already beginning to see some of those bookings come in. Not a material up or down, but certainly we see a bit of a mix change.

Speaker #2: And then we have others who absolutely want to be around it because they see audience growth in that period of time. The other thing that happens is, we do get some election advertising.

Speaker #2: We're already beginning to see some of those bookings come in—so, not a material up or down, but certainly we see a bit of a mixed change.

Speaker #3: Nice. And then just on the ad market, up 2%. Just interested—you mentioned sort of Canterbury going well, but any sort of feedback on categories or segments that have been stronger?

James Lindsay: Nice. Then just on the ad market, up 2%. Just interested, you mentioned sort of Canterbury going well, but any sort of feedback on categories or segments that have been stronger?

Speaker #2: So you might recall when we talked back in February, what we were finding was, end of '25, we saw the larger agency clients beginning to spend, and SME's win.

Michael Boggs: So you might recall when we talked back in February, what we were finding was end of 2025, we saw the larger agency clients beginning to spend and SMEs wouldn't. That sort of reversed in the beginning of 2026 where SMEs started to spend and agencies pulled back again. Then what we've seen through the rest of this year is, the agency clients have well outspent the SME clients, and that was pretty evident as you see in the audio business where they've become a bigger and bigger share of the revenue. Travel's a big focus as an industry. Banks are certainly more and more in a competitive market. So I think we'll see that pretty consistent. But right at the moment, we'd just like to have everyone's heads up a bit more and see everyone more confident and the market continuing to grow.

Speaker #2: And that sort of reversed in the beginning of '26, where SME clients started to spend and agencies pulled back again. And then what we've seen through the rest of this year is the agency clients have well outspent the SME clients.

Speaker #2: And that was pretty evident, as you see in the audio business, where they've become a bigger and bigger share of the revenue. Travel's a big focus as an industry.

Speaker #2: Banks are certainly more and more in a competitive market, so I think we'll see that pretty consistently. But right at the moment, we'd just like to have everyone's heads up a bit more.

Speaker #2: And see everyone more confident and the market continuing to grow.

Speaker #3: Yeah, good. And you mentioned, just with regard to the Google renegotiation coming up, and obviously not wanting to negotiate that live here, but I'm just interested in how you think you can expand that relationship.

James Lindsay: Yeah, good. You mentioned just with regard to the Google renegotiation coming in, obviously not wanting to negotiate it live here, but just interested in how you think you can expand that relationship.

Speaker #2: We are having engagement across all the large platforms. It would be fair to say some are more interested than others in having a discussion.

Michael Boggs: Well, we are having engagement across all the large platforms. Be fair to say, some are more interested than others than having a discussion. One of the things I think is really valuable is both the Prime Minister and Paul Goldsmith, who looks after our portfolio, are very focused on what's happening in this area. They're clear that it is a copyright breach, and they would prefer to see commercial arrangements implemented. But if you do just look across the Tasman, last week, the Australian government introduced a levy on these large customers or large players. It's 2.5% of their advertising revenue to be split across the players to fund journalism, unless these platforms do commercial arrangements with each of the publishers.

Speaker #2: One of the things I think is really valuable is that both the Prime Minister and Minister Goldsmith, who looks after our portfolio, are very focused on what's happening in this area.

Speaker #2: They're clear that it is a copyright breach, and they would prefer to see commercial arrangements implemented. But if you do just look across the Tasman, last week the Australian government introduced a levy on these large customers or large players.

Speaker #2: It's two and a half percent of their advertising revenue to be split across the players to fund journalism, unless these platforms do commercial arrangements with each of the publishers.

Speaker #2: And so you might recall, both the Prime Minister and the Minister, in recent days and even recent months, have said they'll closely follow what's happening in Australia.

Michael Boggs: And so you might recall, both the Prime Minister and the Minister in recent days and even recent months have said they will closely follow what is happening in Australia. We do not want to be a leader in this area, but that would be good to be a close follower.

Speaker #2: We don't want to be a leader in this area, but it would be good to be a close follower.

Speaker #3: Nice. Yeah, that takes a good heads-up. And then, just with regard to that low-margin marketing that you talked about, is that withdrawal from that segment—is that largely done?

James Lindsay: Nice. Yeah. Thanks. Good to hear that. Then just with regard to that low-margin marketing that you talked about, that withdrawal from that segment, is that largely done?

Speaker #2: There's still a little bit more. So just to give you perspective, it is reselling a Google or a Meta, for example—very small margin.

Michael Boggs: There is still a little bit more. Just to give you some perspective, it is reselling a Google or a Meta, for example. A very small margin we make on it, and so we only use it now where we want to package it in to win a customer's full business rather than just selling it as a product on its own. So it is significantly smaller, but used tactically where it is valuable.

Speaker #2: We make on it. And so we only use it now where we want to package it in to win a customer's full business, rather than just selling it as a product on its own.

Speaker #2: So it is significantly smaller, but used tactically where it's valuable.

Speaker #3: Yeah, and I'll carry on unless you tell me to stop. Just with regard to the difference between yourselves and Trade Me Property, I'm just interested in OneRoof. And you talked about the cautious nature of vendors sort of holding things back.

James Lindsay: Yeah. I will carry on unless you tell me to stop. Just with regard to the difference between yourselves and Trade Me property, just interested in OneRoof and you talked about the cautious nature of vendors sort of holding things back. Where do you see your sort of product offering sitting relative? And can that sort of improvements there get you sort of relative gains even in a soft market?

Speaker #3: Where do you see your sort of product offering sitting, relatively? And can those sorts of improvements there get you relative gains even in a soft market?

Speaker #2: Yes. So, talking about vendors, it really is quite the opposite of what you might expect. In markets that are going very well, vendors do market because they know they're going to sell their home.

Michael Boggs: Yeah. Talking about vendors, it really is nearly quite the opposite as to what you should expect. In markets that are going very well, vendors do market because they know they are going to sell their home, and so they are really just trying to bring more visitors to the door. In markets where it is tougher, they are worried that they will not sell, so they are worried about spending the money on advertising because it will be money out the door if they do not sell the property. Nearly the opposite as to what should happen, obviously, is if they were to market, they would have more people at the door, even in a tougher market overall. Key thing we are focused on is just building a better proposition overall. If you look at a Trade Me, yes, it has changed a bit from an app perspective. The web certainly has not changed.

Speaker #2: And so they're really just trying to bring more visitors to the door. In markets where it's tougher, they're worried that they won't sell. So they are worried about spending the money on advertising because it'll be money out the door if they don't sell the property.

Speaker #2: Nearly the opposite of what should happen, obviously, is that if they were to market, they'd have more people at the door, even in a tougher market overall.

Speaker #2: Keith, what we're focused on is just building a better proposition overall. So if you look at Trade Me, yes, it's changed a bit from an app perspective.

Speaker #2: The web certainly hasn't changed. Whereas, if you look at the OneRoof app—and you'll see another one later this year—and an upgraded website, you'll see later this year is very much focused on trying to replicate the best you see around the world.

Michael Boggs: The web certainly has not changed. Whereas if you look at the OneRoof app, and you will see another one later this year, and an upgraded website you will see later this year, is very much focused on trying to replicate the best that you see around the world. So that is around focusing on an audience to get them more engaged at the same time as focusing on an agent so that they can actually bring more listings to them and help promote their personal brand.

Michael Boggs: Whereas if you look at the OneRoof app, and you will see another one later this year, and an upgraded website you will see later this year, is very much focused on trying to replicate the best that you see around the world. So that is around focusing on an audience to get them more engaged at the same time as focusing on an agent so that they can actually bring more listings to them and help promote their personal brand.

Speaker #2: So that's around focusing on an audience, getting them more engaged, at the same time as focusing on an agent so that they can actually bring more listings to them and help promote their personal brand.

Speaker #3: Nice. And then, this might be.

James Lindsay: Nice. This might be-

Kelly Gunn: James, sorry. I will just cut in there, sorry. We have got a couple of people with their hands up, so we will come back to you if we have time.

Speaker #1: Mark James, sorry, I'll just cut in there. Sorry, we've got a couple of people with their hands up, so we'll come back to you if we have time.

Speaker #3: Oh, full time.

James Lindsay: Looking forward to it. Thank you.

Speaker #1: Thanks. Next, we've got Vishal Bhulla. Vishal?

Kelly Gunn: Thanks. Next, we've got Vishal Bhula. Vishal?

Speaker #4: Morning, guys. Congrats on the great half-year result, given the backdrop, and thanks for the preso this morning. Just a couple of quick ones from me, as James has covered quite a bit.

Vishal Bhula: Morning, guys. Congrats on a great H1 result, given the backdrop, and thanks for the preso this morning. Just a couple of quick ones from me. James has covered quite a bit. On OneRoof, you spoke to a lot of how your investment in the H1 hasn't yet been reflected in revenue. I guess just as a starting point, would the cost base now kind of be reflective of the new operating model, or do you think there's some more investment there to be made over the short term?

Speaker #4: But you know, on OneRoof, you spoke to a lot of how your investment in the first half hasn't yet been reflected in revenue. And I guess, just as a starting point, would the cost base now be kind of reflective of the new operating model, or do you think there's some more investment there to be made over the short term?

Speaker #2: No, we definitely do expect that. That's now the level of investment. Some of the key investments we're bringing in are an improved and slightly larger leadership team, because it is a more experienced team.

Michael Boggs: No, we definitely do expect that that's now the level of investment. Some of the key investments we're bringing in an improved and slightly larger leadership team because it is a more experienced team. The second thing we did is we did actually insource the previously outsourced development. We think we now have a pretty fixed base, and therefore revenue growth from here should substantially flow through to the bottom line.

Speaker #2: The second thing we did is, we actually insourced the previously outsourced development. So, we think we now have a pretty fixed base, and therefore, revenue growth from here should substantially flow through.

Vishal Bhula: No, that is great. Thanks for that. Could you just talk a bit more what you did see over the first and second quarters, and maybe even what you are seeing in Q3 in terms of forward bookings compared to the PCP?

Speaker #4: Right, right. Thanks for that. So, maybe could you just talk a bit more about what you did see over the first and second quarters, and maybe even what you are seeing in the third quarter, in terms of board bookings compared to the PCP?

Speaker #2: Yes. So, as I mentioned earlier, in the first few months it was really a mix between agency and SME customers, with each going at different trends.

Michael Boggs: Yeah. So a bit of a mix, as I talked about earlier, in the first few months was really a mix between agency and SME customers going at different trends. What we seem to find is these larger customers, these agency clients, they come into their new financial years or their new halves and they go, "Actually, we might bank a bit of money and then go hard when we see it a little bit later." What we saw at the H1 of the year, obviously, is in January, February, we saw those agency customers pull back a bit. Then, we have seen something similar in the first part of this year. But as we now look out further, we are now seeing the bookings come through again. So quite a bit of movement.

Speaker #2: What we seem to find is these larger customers, these agency clients, they come into their new financial years or their new halves, and they go, actually, we might bank a bit of money and then go hard when we see it a little bit later.

Speaker #2: So what we saw in the first half of the year, obviously, is in January and February, we saw those agency customers pull back a bit.

Speaker #2: And then we're seeing something similar in the first part of this year. But as we now look out further, we're now seeing the bookings come through again.

Speaker #2: So, quite a bit of movement. But I think the key thing for us is really: what does this environment look like as we move forward? There are some positive indicators.

Michael Boggs: But I think the key thing for us is really what does this environment as we move forward. There are some positive indicators. Those positive indicators do directly flow through to advertising revenue. We are seeing more and more advertisers and marketers talk about the importance of brand rather than just paying for every single interaction, through a Google Performance marketing, for example. So, subject to that economic environment, we think we are well-positioned.

Speaker #2: Those positive indicators do directly flow through to advertising revenue. We're seeing more and more advertisers and marketers talk about the importance of brand rather than just paying for every single interaction.

Speaker #2: Through Google performance marketing, for example. So, subject to that economic environment, we think we're well positioned.

Speaker #4: Well, awesome. Thanks for that. I'll get back in the queue and give someone else a chance. Thanks, guys.

Vishal Bhula: Well, awesome. Thanks for that. I will get back in the queue and give someone else a chance. Thanks, guys.

Speaker #1: All right. Thanks, Vishal. Next, we have Roger Coleman. Hi, Roger.

Kelly Gunn: Okay. Thanks, Vishal. Next we have Roger Colman. Hi, Roger.

Speaker #2: Good morning, Roger. Are you there, Roger? You might be on mute. Sorry.

Michael Boggs: Morning, Roger. Are you there, Roger? You might be on mute. Sorry.

Roger Colman: Yeah, got it. I am just looking at the OneRoof result and the performance. We lost some market share last year. The Trade Me revenue is up 21%, we are up 18%. It looks like we have probably lost market share again in revenue market share. in February 2018, when you put out the program for the decade, subsequent that you were going to have GrabOne driven and OneRoof as big operations. Well, Trade Me is doing about NZD 100 million EBITDA. We are doing around about NZD 3 million to NZD 4 million, assuming that all the cost and the marketing in kind delivered to OneRoof is recorded there. This is all pretty disappointing. Most of the institutions that have come and gone over the last decade really went in there for the marketplace verticals that you should have targeted.

Speaker #3: You got it. I'm just looking at the OneRoof result and the performance. I mean, we lost some market share last year. The Trade Me revenue is up 21.

Speaker #3: We're up 18. It looks like we've probably lost market share again in revenue market share. In 2018, in February, when you put out the program for the decade, subsequent to that you were going to have you do Driven and OneRoofers, big operations, well, Trade Me is doing about $100 million already.

Speaker #3: But the A, we're doing around about three to four, assuming that all the cost and the marketing in kind delivered to OneRoof is recorded there.

Speaker #3: This is all pretty disappointing. Most of the institutions that have come and gone over the last decade really went in there for the marketplace verticals that you should have targeted.

Speaker #3: And I think we're at the stage now where, for the benefit of the company—and also for your own shareholding of 4.3 million shares—that you give notice to the company that you're resigning in due course.

Roger Colman: I think we are at the stage now where, I think for the benefit of the company and also for your own shareholding of 4.3 million shares, that you give notice to the company that you are resigning in due course. The performance overall has been no change in the share price for a decade. I hope directors who are listening to this should never again employ a CFO for a job like this where the talent goes up and down the lift. We need people who make numbers, not count numbers. That is all I have got to say, Michael. It is no good coming to ask me for introductions to Australian executives in the media industry like you did 10 years after you started this gig. So, I am signing off as far as your performance with the company is concerned. Thank you.

Speaker #3: The performance overall has been no change in the share price for a decade. And I hope directors who are listening to this should never again employ a CFO for a job like this, where the talent goes up and down the left.

Speaker #3: We need people who make numbers, not count numbers. That's all I've got to say, Michael. And there's no good in asking me for introductions to Australian executives in the media industry, like you did 10 years after you started this gig.

Speaker #3: So, I'm signing off as far as your performance at the company is concerned. Thank you.

Speaker #2: Thanks, Roger.

Michael Boggs: Thanks, Roger.

Speaker #1: All right, we have an online question from Mark Hardy. OneRoof pricing is still well under Trade Me, despite being very close on market share.

Kelly Gunn: We have an online question from Mark Hardy. Wonder if pricing is still well under Trade Me, despite being very close on market share. How much pricing sensitivity have you done on Trade Me? This would seem to be a key pathway to growing OneRoof profitability.

Speaker #1: How much pricing sensitivity have you done on Trade Me? This would seem to be a key pathway to growing OneRoof profitability.

Speaker #2: Yes, I do think it is. I keep path profitability. One of the things we don't want to do, though, is risk getting further engagement from vendors.

Michael Boggs: Yes, I do think it is a key path to profitability. One of the things we do not want to do, though, is risk getting further engagement for vendors. So our first priority is actually lifting the penetration rates, but at the same time moving our vendors up the packages we have. We have plenty of ability to move the vendors up to higher packages, but at the same time, we will continue to create even better or higher performing packages that would move a yield up. As I say, first focus is getting vendors more and more engaged in the platform and using it.

Speaker #2: So our first priority is actually lifting the penetration rates. But at the same time, moving our vendors up the packages we have. So we have plenty of ability to move the vendors up to higher packages.

Speaker #2: But at the same time, we will continue to create even better or higher-performing packages that would move the yield up. As I say, the first focus is getting vendors more and more engaged in the platform and using it.

Kelly Gunn: And one from James Lindsay. James has rejoined the queue. Thanks, James.

Speaker #1: And one from James Lindsay. James has rejoined the queue. Thanks, James.

Speaker #5: Thank you very much. I'm just interested in the sort of debt you talked about. Obviously, there was good performance for the first half, and obviously the second half normally lifts a bit.

James Lindsay: Thank you very much. Just interested in sort of debt. You talked about, obviously, the good performance for H1 and obviously H2, normally it sort of lifts a bit. Just interested in your view about dividend versus the CapEx spend and obviously the Stuff acquisition timing as well, which I think you've given NZD 7 million. So what sort of range would you expect that debt level to be by full year?

Speaker #5: Just interested in your view about dividend versus the capex spend, and obviously the Stuff acquisition timing as well, which I think you've given as $7 million.

Speaker #5: So, what sort of range would you expect that debt level to be by full year?

Speaker #2: Yes, so as you saw, a good improvement in the first half. And as you say, the first half has the final dividend flowing through from the prior year, paid out in that first half, and a little bit more tax paid in that as well.

Michael Boggs: Yeah. So as you saw, a good improvement in H1. As you say, H1 has the final dividend flowing through from the prior year paid out in that H1, and a little bit more tax paid in that as well. So we would expect, we've got a large improvement half on half. We'd expect that to flow through to the end. We've given some guidance as to how that CapEx will be spent. So there's going to be significant cash flow still, and operating performance will continue to support that in H2.

Speaker #2: So we would expect, given we've got a large improvement half-on-half, we'd expect that to flow through to the end. We've given some guidance as to how that capex will be spent.

Speaker #2: So there's going to be significant cash flow still, and operating performance will continue to support that in the second half.

Speaker #5: And you talked about the potential for dividends. And I know this is, as you say, probably more board-level, but I'm just interested in your view of that range of 0.5 to 1 times.

James Lindsay: You talked about the potential for dividends, and I know this is, as you say, probably more board level. But just interested in your view of that range of 0.5 to one times, in either increasing dividend or paying down debt as your personal preferences.

Speaker #5: And either increasing the dividend or paying down debt—what are your personal preferences?

Speaker #2: Yeah, I think that'll be something the Board just keeps top of mind. And they're cognizant of that dividend policy, and as you saw in the notes, they expect to be paying within that policy.

Michael Boggs: Yeah, I think that'll be something the board just keeps top of mind, and they're cognizant of that dividend policy. As you saw in the notes, they expect to be paying within that policy, but it's something that's constantly under review.

Speaker #2: But it's something that's constantly under review.

Speaker #5: Magic. Thanks, team, and look forward to sharing soon. Cheers.

James Lindsay: Magic. Thanks, team, and look forward to chatting soon. Cheers.

Speaker #1: All right, thank you, James. And we just have one more online from Chris Pato. What do you attribute to audio remaining so resilient? And is it consistent across the country, or are you seeing particular areas of strength?

Kelly Gunn: All right. Thank you, James. We just have one more online from Chris Gertardo. What do you attribute to audio remaining so resilient, and is it consistent across the country, or are you seeing particular areas of strength?

Speaker #2: Yes, and maybe just to the last part of your question, we are seeing it consistent across the country. As I mentioned, we're seeing it sort of a little bit different across the types of customers, large versus small.

Michael Boggs: Yeah. To the last part of your question, we are seeing it consistent across the country. As I mentioned, we are seeing it a little bit different across the types of customers, large versus small. But back to one of the earlier comments, we are hearing more and more around brand marketing rather than having to pay for every single click on your website through performance marketing. Advertisers are going, "This is something we want to be involved in." It is positive for us because we can then link audio into the rest of our platforms. Just to give you a small example, this Friday we are supporting ANZ's Daffodil Day, which is a fundraiser for cancer. We have a big integration across all of our platforms to help ANZ deliver those donations.

Speaker #2: But we're back to one of the earlier comments. We're hearing more and more about brand marketing, rather than having to pay for every single click on your website through performance marketing.

Speaker #2: So advertisers are going, this is something we want to be involved in. It's positive for us because we can then link audio into the rest of our platforms. And just to give you a small example, this Friday we're supporting ANZ's Daffodil Day, which is a fundraiser for cancer.

Speaker #2: We have a big integration across all of our platforms to help ANZ deliver those donations. And so that's audio-led, but it also goes across our digital platforms and our print publications.

Michael Boggs: That is audio led, but it does as well go across our digital platforms and our print publications. That is helping us overall. All right. I think that is all of our questions for now. Thanks everyone for joining us today and your interest and support of NZME. We look forward to catching up with many of you as we progress. Have a good day, everyone.

Speaker #2: So that's helping us overall. All righty, I think that's all of our questions for now. So, thanks everyone for joining us today and for your interest in, and support of, NZME. We look forward to catching up with many of you as we progress.

Speaker #2: Have a good day, everyone.

Operator: Goodbye

Operator: Goodbye.

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