Fund Manager Summary on NZME Ltd (ASX:NZM)
NZME Ltd (ASX:NZM) is positioned for potential growth, highlighted by its recent 13% share price increase following a favorable interest rate cut from the RBNZ. Fund managers note significant progress in NZME's digital transformation, with digital audio and subscription revenues rising by 33% and 13%, respectively, in 1HCY24. OneRoof, the company's property portal, saw a remarkable 63% spike in digital listing revenue, with substantial market share gains as the audience gap to the leading platform narrows to just 10%. However, the firm faces challenges from a historically weak advertising market and overall macroeconomic pressures, although recent performance showed improvement in revenue decline rates. Fund managers assert the market undervalues NZME, trading at approximately 4x FY25 EV/EBIT, while potential earnings will likely improve with the economy and OneRoof’s ongoing growth.
Commentary From The Managers
There are 2 insights from 1 fund managers regarding their investment in NZME Ltd (ASX:NZM) available on Thesis Tracker.
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Commentary From The Managers
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in NZME Ltd (ASX:NZM)?
Fund managers including Spheria Asset Management have invested in NZME Ltd (ASX:NZM).
Why do fund managers invest in NZME Ltd?
Fund managers invest in NZME Ltd due to its ongoing digital transformation and solid growth prospects in the media sector. The company's shift towards digital revenue, notably in audio and subscriptions, shows strong growth, with recent figures indicating a 33% increase in digital audio revenue. Additionally, NZME's position as the second-largest property portal, OneRoof, is gaining market share, enhancing its earnings potential. The company's valuation, trading at approximately 4x FY25 EV/EBITDA, suggests it may be undervalued, offering an attractive risk/reward profile amidst a recovering economy.
What happened to NZME Ltd (ASX:NZM)?
There have been no recent updates from fund managers regarding NZME Ltd although fund managers including Spheria Asset Management have previously commented.
What is the short interest in NZME Ltd (ASX:NZM)?
According to ASIC filings, there is negligible or no short interest in NZME Ltd (ASX:NZM).
What does NZME Ltd (ASX:NZM) do?
NZME Ltd. engages in publishing newspapers, magazines and operates radio stations. It brands includes NZME Publishing, Audio, Digital, Events and Commercial Printing. It operates through Audio, Publishing and OneRoo segment. The Audio segment operates terrestrial radio stations, digital iHeartRadio, podcasts and Radio brand websites. The Publishing segment operates print publications and digital news websites. The OneRoof segment operates real estate print publications. The company was founded on December 20, 2001 and is headquartered in Auckland, New Zealand.