Latest / Best of Business / Michael Boggs: NZME CEO on NZME returning to profit and what it means for the market

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Michael Boggs: NZME CEO on NZME returning to profit and what it means for the market · Best of Business

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  Speaker 1: You're listening to a podcast from Newstalk ZEDB. Follow this
• 0:13
  Speaker 1: and our wide range of podcasts now on iHeartRadio Now.
• 0:16
  Speaker 2: Despite the sluggish economy, Newstalk zedb's owner Enzenmy has delivered
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  Speaker 2: a half year post tax profit of six point six
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  Speaker 2: million dollars. It's reported in operating EBITDAR of twenty six
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  Speaker 2: point five million. That's up eleven percent. That's pretty good,
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  Speaker 2: says Trading conditions though remain volatile. Michael Boggs is the
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  Speaker 2: chief executive High Bogszy, Good afternoon. You've got to be
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  Speaker 2: happy with this result.
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  Speaker 1: Yeah.
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  Speaker 3: I think it's a solid result for everyone right across
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  Speaker 3: the business.
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  Speaker 2: Yeah. Everything seems to be tracking in the right direction,
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  Speaker 2: the debt, the revenue, the profit.
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  Speaker 3: It's great to see advertising revenue up two percent for
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  Speaker 3: the half. Nice to have revenue growth for a change,
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  Speaker 3: which is a great thing to achieve ebit DA. So
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  Speaker 3: that's our profitability up eleven percent year on year and
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  Speaker 3: our net profit after tax not a loss by last year,
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  Speaker 3: but actually being in profit.
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  Speaker 2: Why do you say it is still volatile though?
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  Speaker 3: I mean, as you'll see the market indicators still say
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  Speaker 3: that while consumer confidence is in business confidence is increasing
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  Speaker 3: everyone's doing it tough.
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  Speaker 2: Do you think that we're in a bit of a
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  Speaker 2: holding pattern through to the election.
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  Speaker 3: I'd like to say no, but it feels like people
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  Speaker 3: are really waiting to see maybe who's going to be
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  Speaker 3: in government, what the future might look like.
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  Speaker 2: But isn't I mean, isn't that the best case scenario
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  Speaker 2: that what we're in right now is just a holding
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  Speaker 2: pattern and then it takes off after November seven. I'm
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  Speaker 2: going to slog it out till then, but it's going
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  Speaker 2: to take off after then.
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  Speaker 3: Personally, I think it is. What I quite like though,
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  Speaker 3: is we were a December year end, so if we
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  Speaker 3: could takeoff before then, I'd be very happy.
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  Speaker 2: That would work quite well for you. Okay, what's going
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  Speaker 2: on in the advertising space then.
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  Speaker 3: So what we're finding is audio as our rock star,
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  Speaker 3: so you know, people like you are delivering great content,
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  Speaker 3: which means advertisers want to be alongside you. So we
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  Speaker 3: saw audio up eight percent year on you. The total
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  Speaker 3: markets not growing significantly, so we are doing better than
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  Speaker 3: the market from an audio perspective. One of the things
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  Speaker 3: we are finding though is people engaging in video, very
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  Speaker 3: very important. So we obviously have a herald now we're
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  Speaker 3: seeing great sponsorship for that, great engagement of that. We've
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  Speaker 3: just recently moved that on Toto TV three as well,
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  Speaker 3: so again we're seeing a large audience and people wanting
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  Speaker 3: to engage.
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  Speaker 2: So people are watching the videos, they're clicking on it,
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  Speaker 2: watching the things.
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  Speaker 3: Absolutely, so you will know. We've got a new New
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  Speaker 3: Zealand Herald app at the bottom of that you can
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  Speaker 3: press video, you can see it live on there or
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  Speaker 3: you can see some cut down versions of it, which
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  Speaker 3: again is giving us great engagement.
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  Speaker 2: Yeah, I mean that does help a lot, doesn't it. Okay,
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  Speaker 2: So what's going on with the AI and the automation.
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  Speaker 2: What are you doing there?
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  Speaker 3: So, like any company, there's opportunities to improve the way
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  Speaker 3: we do things. A number of things we want to
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  Speaker 3: try and do as obviously operating processes that are repetitive
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  Speaker 3: or manual, try and automate those as much as possible.
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  Speaker 3: We're investing though at the same time, so you know
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  Speaker 3: you will have seen it. Again, We've invested in one roof,
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  Speaker 3: we've invested in videos, so as much as possible, you
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  Speaker 3: want to invest in those things. But we are making savings.
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  Speaker 3: We're getting lower infrastructure costs, we're insourced a number of
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  Speaker 3: our developers and at the same time the some development
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  Speaker 3: external parties that we're not renewing anymore.
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  Speaker 2: Business desk is doing quite well, isn't it It is.
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  Speaker 3: I've actually seen one of your colleagues already post about
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  Speaker 3: how well business desk is doing.
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  Speaker 2: Which one would that be, I'm sure work it out, Smelly, No,
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  Speaker 2: it's Matt Martel, of course, of course he is. Yeah,
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  Speaker 2: well they have reason to crow, right because what is
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  Speaker 2: this subscribers.
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  Speaker 3: Subscribers are eighteen percent, so yeah, that's people engaging in
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  Speaker 3: what's really good content. Again, we've invested in more journalists
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  Speaker 3: and business desk and so people are going. Actually, it's
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  Speaker 3: given me really good insight for my business decisions.
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  Speaker 2: Now, where are we at with the government and getting
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  Speaker 2: them to force the tech companies to pay for news,
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  Speaker 2: because I see Australia's just managed to do it exactly right.
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  Speaker 3: So actually on Thursday last week, the Australian government has
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  Speaker 3: just approved some legislation where the big tech will contribute
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  Speaker 3: to journalism. What we're finding here is the New Zealand
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  Speaker 3: government has said we will follow closely what is happening
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  Speaker 3: in Australia, and we've had both the Prime Minister and
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  Speaker 3: Minister Goldsmith say to us exactly that would prefer you
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  Speaker 3: to be out doing commercial deals with each of these
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  Speaker 3: big tech companies, but we will follow close behind with
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  Speaker 3: what's happening in Austry.
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  Speaker 2: So why is Goldie dragging his heels on this one?
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  Speaker 2: Has he explained it to you?
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  Speaker 3: I think you know? And he said this publicly. I
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  Speaker 3: think he even said it as much as last week.
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  Speaker 3: We don't want to be a lead in the world
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  Speaker 3: of some of these things because it might have other ramifications.
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  Speaker 2: Like what like fay, like pulling out of the market
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  Speaker 2: all too like terraffs, like what old tariffs? Oh I
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  Speaker 2: mean seriously though, has Australia been hit with tariffs treats?
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  Speaker 1: Right?
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  Speaker 2: Okay? Well, I mean that's probably fair enough, although it
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  Speaker 2: does feel like Goldie is the place that good ideas
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  Speaker 2: go to die. Do you know what I mean?
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  Speaker 3: Well, you might have heard Willie Jackson just last week
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  Speaker 3: as well, saying there is some legislation that Labor had
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  Speaker 3: put in last time that they're ready to approve once
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  Speaker 3: they're in government.
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  Speaker 2: Boxy, do you want a job in broadcasting the way
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  Speaker 2: you're just heading me with all this news content. Are
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  Speaker 2: you going to miss the BSA if Paul Goldsworth actually
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  Speaker 2: goes ahead and dumps it.
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  Speaker 3: Look, I think we've got great industry ability to monitor
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  Speaker 3: ourselves at the moment and that seems to be working
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  Speaker 3: really well.
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  Speaker 2: How much do we pay the BSA?
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  Speaker 3: Not as much as you'd think.
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  Speaker 2: Really, is it commercially sensitive? You can't say no.
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  Speaker 3: Well, I just think you know, there's a lot of
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  Speaker 3: people involved in it. I feel it takes a long
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  Speaker 3: time to make decisions and we have a better operating
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  Speaker 3: model with what we're already doing.
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  Speaker 2: But it is money that we don't need to spend.
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  Speaker 2: Right if we can actually ourselves to account for the
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  Speaker 2: most part and keep our own feet to the fire,
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  Speaker 2: which is wasting money on the slot in Wellington, Absolutely
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  Speaker 2: we are okay, cool. Hey, what time did you go
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  Speaker 2: home after the party? The one hundred year party?
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  Speaker 3: I went home about the same time as you, which
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  Speaker 3: is well.
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  Speaker 2: I have I have an excuse of very small children,
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  Speaker 2: so it was very early. So you behaved yourself very well?
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  Speaker 3: Then? Yes I did.
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  Speaker 2: Indeed, we have a good note.
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  Speaker 3: Thank you.
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  Speaker 2: I did foggsy Thanks, I appreciated look after yourself. That's
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  Speaker 2: Michael Boggs is it means Chief Executive.
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