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NZME's 8% Dividend Yield Is Real — And the Business Just Swung Back to Profit

8% Yield From a Company Nobody's Talking About

NZME (NZX: NZM) is one of the most recognisable media businesses in New Zealand — it owns the NZ Herald, NewstalkZB, iHeartRadio NZ, and the OneRoof property platform — yet as a stock, it barely gets a mention in most portfolios. At $1.11 NZD with a forward dividend yield of roughly 8.1%, that might be an oversight worth reconsidering.

The numbers behind the yield are now supported by genuine earnings: FY2025 saw NZME swing from a $16 million net loss to a $13.1 million net profit. EBITDA came in at $62.3 million NZD — up 15% year-on-year and above the company's own guidance range of $59–62 million.

FY2025: The Numbers

Full-year results for the year ended December 2025, released February 24, 2026:

  • •Net profit: $13.1M NZD (vs. -$16M in FY2024)
  • •EBITDA: $62.3M NZD (up 15%, beating guidance)
  • •Market cap: ~$209M NZD
  • •P/E ratio: 15.9x (trailing)
  • •EPS: $0.07 NZD
  • •Annual dividend: $0.09 per share (8.1% yield at current price)
  • •Share price: $1.11 NZD
  • •52-week range: $1.005 – $1.24

Divisional performance:

  • •Audio (radio, iHeartRadio): Operating revenue up 5%, EBITDA up 23%, EBITDA margin 15%
  • •OneRoof (property listings): Digital listings revenue up 19%, operating revenue up 5%
  • •Publishing (NZ Herald, digital news): Operating revenue down 6% (down 2% excluding closed community titles)

What's Actually Working

The headline trend in media is well-known: print advertising is dying, and digital is the future. NZME is navigating that transition more successfully than most give it credit for.

Audio is the standout. Radio is proving more resilient than print, and NZME's network — NewstalkZB, ZM, The Hits — commands dominant market share in NZ. The 23% EBITDA growth in audio shows strong operating leverage as the cost base is kept lean.

OneRoof is the hidden gem. A 19% jump in digital property listings revenue reflects the recovery in the NZ housing market and OneRoof's growing position as a genuine competitor to Trade Me Property. This segment is small but growing fast.

Publishing declining 6% is expected and not alarming — the company has been closing unprofitable community titles, which explains part of the headline decline. The NZ Herald's digital subscription and advertising base is the durable core of this segment.

The Dividend — Can It Last?

At $0.09 per share annually on a $1.11 stock, the 8.1% yield is the obvious draw. NZME has a history of paying meaningful dividends and has recommitted to shareholder returns as the balance sheet improved.

The risk is always whether a high yield is a sign of value or a sign of danger. In this case, EBITDA of $62M gives substantial coverage above the ~$17M annual dividend cost. The return to profitability removes the prior concern that the dividend was being funded by debt or asset sales. It looks sustainable at current earnings levels.

Analyst View

The consensus analyst target is $1.36 NZD — implying 22.5% upside from current levels, on top of the 8.1% dividend yield. That combination of income and capital upside is rare on the NZX. Analysts have been warming to the stock as the digital transition shows tangible results.

The Risks

  • •Structural media decline: Print advertising continues to erode, and there's a ceiling on how much digital can offset it long-term
  • •Concentration in NZ: Unlike global media companies, NZME is entirely dependent on the NZ economy and advertising market
  • •OneRoof competition: Trade Me Property has deep pockets and brand recognition; if OneRoof's growth stalls, the thesis weakens
  • •Technology disruption: AI-generated content and changing news consumption habits are medium-term risks to any traditional media business
  • •Small cap illiquidity: At $209M market cap, the stock is thinly traded — entering or exiting large positions moves the price

The Bottom Line

NZME has done what it said it would — cut costs, grow digital, return to profit. An 8.1% forward yield backed by $62M EBITDA and a swing from $16M loss to $13M profit is a credible income story, not a yield trap. With analysts targeting $1.36 NZD (22% upside), the total return case is among the more compelling on the NZX for income investors willing to accept some structural media risk.

*Disclaimer: This article is for educational and informational purposes only. It does not constitute financial advice. Stock data may not be real-time. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.*