NZME‘s profit is down by more than half as revenue fell in challenging market conditions.

NZME‘s six month profit halved to $3.7m. Photo: RNZ / Brad White

The media company‘s net profit for the six months ended June fell 53 percent to $3.7 million, which included a one-time investment of $3.1m.

The underlying profit fell 18 percent to $23.2m

“Our underlying business continues to perform well in challenging market conditions, providing us with the capacity to undertake a number of exciting growth projects while still delivering returns to shareholders in the form of a 2.0 cent fully imputed half year dividend,” said chair Peter Cullinane.

Revenue fell 3 percent to $185.7m.

Chief executive Michael Boggs said the print advertising revenues dropped and were hit by weaker economic conditions.

“While we are broadly satisfied with our revenue performance, our earnings were lower partly due to our strategy to increase spending in specific areas to pursue medium term growth,” said Mr Boggs.

He said the second half continues to be challenged by softening economic donditions with the potential to weak or delay advertising spending, and would also hit digital advertising.

However, he expected the investment in digital classified services to generate future revenue streams.