MediaWorks' back to basics approach working
The company's audience share in the 25 to 54 age group, known in the industry as the money zone, is at its highest since 2020 and, at 58 percent, is well ahead of its rival NZME on 31percent. Strong performances from brands like Mai FM, The Breeze, More FM and The Rock have driven increased revenues as well as ratings.
In its just-announced result for the year ending December 31, 2024, radio and digital revenue improved by $4m or nearly 3 percent to $150m. It was a good effort in a tight advertising market, but the rising star of the business is the 'out-of-home' (billboard) arm. Revenue was up nearly $6m (12 percent) to $51m.
An increasing amount of that revenue came from programmatic digital out-of-home (pDOOH) sales which jumped 83 percent compared with the market average of 23 percent.
pDOOH is an automated system where buyers can set the conditions (ie. time of day, location, weather conditions etc.) under which they would buy slots and when providers agree the ads are automatically sent to digital billboards.
Given that the radio market is mature and close to being maxed-out in revenue terms the out-of-home business is increasingly important to MediaWorks.
Unlike other forms of media, out-of-home can't be blocked, muted or skipped. If you are in the vicinity of a billboard you are going to see it.
MediaWorks' chairman, Barclay Nettlefold, who represents the owners, Australian private equity firm Quadrant, will be patting himself on the back for appointing Wendy Palmer to the CEO role in August 2023.
Nettlefold took himself off the board after Cam Wallace, a former Air New Zealand executive, was appointed CEO in 2021. Wallace's two-year reign was marked by the expensive failure of Today FM. The talkback station was MediaWorks' challenge to Newstalk ZB but failed to fire despite millions being poured into it.
After Wallace resigned to take up a role at Qantas, Nettlefold rejoined the board and hired Palmer.
Palmer, who had previously been head of radio at MediaWorks when it also owned TV3, is known for her focus on revenue and deep knowledge of commercial radio. So far, Palmer has resisted the temptation to tackle Newstalk ZB head-on like Wallace did. It means a tantalisingly large pot of money is out of reach, but Palmer has stayed focused on the music brands and cut costs. The wages bill is down $2 million year-on-year.
The company is still losing money, $16m in the latest financial year, but this is due to the high debt level if carries, a legacy of the company's past.
The interest bill for the latest financial year was $20 million.
Changing of the PR guard
If further proof was needed that the world of public relations consultancies has evolved significantly in New Zealand it came at last week's PRINZ awards.
Pead PR won the supreme award for its role in the promoting the world's biggest haka at Eden Park last year and other categories were dominated by newer firms like One Plus One Communications and Special PR.
One Plus One won Large Consultancy of the Year.
Last year it shared the accolade with Special PR which was runner-up this time.
Some of the big-name firms of the past either didn't enter or didn't feature.
In the past year, former heavyweight Senate has closed. And major players like Sweeney Vesty, Baldwin Boyle and Network PR don't operate at the scale they once did.
Industry leaders Deborah Pead and Claudia Macdonald (Mango Communications) have recently eased back or retired. One Plus One's Kelly Bennett, Max Burt and Special's Kelly Grindle are at the forefront of the generational change flowing through the local PR industry.
Anna Cottrell honoured
Wellington journalist and documentary maker Anna Cottrell is made a Member of the New Zealand Order of Merit in the King's Birthday honours list. Cottrell started her career as a TV reporter on 'The South Tonight' a regional news programme in Christchurch in 1978. Her passion for current affairs saw her quickly move to directing longer items on TV One's Close Up. In 1988 Cottrell became a freelance documentary maker and her work focused on the experience of immigrants in New Zealand. Her interest in military history led to a television series on The Great War and the impact it had on people's lives. The five-part series (33 episodes) screened on TV3. Most recently, Cottrell produced Shine On Katherine Mansfield a series about the legacy of New Zealand's famous short story writer.
Cottrell, who is known for her dedication to the craft and humility told Newsroom 'I only accepted it [the honour] on the last possible day on behalf of the film crews, editors, graphic designers, and musicians – my colleagues over many years.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
12 hours ago
- Scoop
Australia's Big Companies Face Critical Net Zero Investment Gap
New research reveals Australia's highest emitting companies are failing to back their net zero commitments with adequate investment, highlighting the need for a strong 2035 emissions reduction target and net zero plans to ensure Australia's transition. The Investor Group on Climate Change (IGCC) and Pollination have released the first comprehensive analysis of how Australian companies translate climate commitments into capital allocation decisions. The Financing Australia's Corporate Climate Transition report finds a significant disconnect between corporate ambition and investment reality. Despite 66% of ASX200 companies making net zero commitments, few have adequately integrated climate considerations into their capital allocation processes. This investment gap between ambition and action highlights a weakness in Australia's transition to net zero without strong policies that ensure adequate private investment. Testing a new evaluation framework against 12 major ASX-listed companies in high emitting sectors highlighted the concerning gap. Only one company achieved high alignment in more than 50% of criteria, while three companies showed low alignment across half or more criteria. While 75% of companies demonstrated medium or high alignment in transition investment quality, only one company met the high alignment criteria for actual capital quantity. Policy certainty needed This investment gap demonstrates why Australia needs a credible 2035 emissions reduction target coupled with comprehensive sectoral pathways that provide clear direction for each part of the economy to reach net zero by 2050. A strong policy framework will give companies and investors certainty to make substantial capital commitments that align with their decarbonisation goals. The Climate Change Authority has recently released a sector pathways review which provides the foundation, but government action is needed to translate this into clear Sectoral Emissions Reduction Plans. 'This is the first deep dive into whether Australian companies are actually backing their net zero commitments with real investment,' said Richard Proudlove, IGCC Director of Corporate Engagement. 'What we've found is a significant gap between ambition and action. "Australia has the opportunity to lead in the transition, but without clear policy signals and adequate capital deployment, we risk being left behind and missing out on huge economic opportunities.' A framework for better capital alignment The report introduces a comprehensive framework with seven Guiding Principles across capital sourcing, management, deployment and enabling activities. It includes practical tools for investors and identifies 'red flags' indicating inadequate climate ambition. 'Companies are announcing capital expenditure numbers, but our analysis shows these disclosures don't provide enough detail for investors to assess whether the capital is sufficient or appropriately targeted to achieve their stated decarbonisation goals,' said Zoe Whitton, Managing Director at Pollination Group. 'Without clear policy frameworks like sectoral pathways, companies lack the guidance they need for effective capital allocation, and investors can't properly evaluate their transition strategies. This framework helps fill that gap.' The framework was developed through global case studies, stakeholder interviews and evaluation of 12 major Australian companies. It supports the Climate Action 100+ initiative by providing sophisticated tools for investor-company dialogue on decarbonisation progress. Effective climate transition requires capital allocation across entire sectors. This research provides crucial insights for policymakers designing the sectoral plans needed to accelerate Australia's transition. As the government prepares 2035 emissions reductions targets, this analysis reinforces the need for comprehensive sectoral pathways. Without clear policy signals, it will be increasingly difficult to close the investment gap, and Australia could miss out on the economic benefits of a decarbonised economy.
NZ Herald
13 hours ago
- NZ Herald
Regional airline Sounds Air forced to drop routes as it sells part of fleet
A Sounds Air nine-seater Pilatus PC12 plane. The airline is selling off its PC12 fleet. Photo / NZME Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech. Regional airline Sounds Air forced to drop routes as it sells part of fleet A Sounds Air nine-seater Pilatus PC12 plane. The airline is selling off its PC12 fleet. Photo / NZME Regional airline Sounds Air is dropping some routes as it sells off part of its fleet amid rising costs. Sounds Air chief executive Andrew Crawford told Newstalk ZB it was just another blow to regions in this country. 'We just can't keep going with the ever-increasing costs that are being imposed on the business. 'In particular, because everything we buy is in US dollars, the currency is so weak, and costs have gone up so much since Covid, it's just no longer viable to fly some of our fleets. 'We've had over half a million of costs imposed in the last three months that we've really got no way of getting back except for passing onto customers.'
NZ Herald
20 hours ago
- NZ Herald
Listen live: PM Christopher Luxon speaks after NCEA credibility concerns, new school builds
Prime Minister Christopher Luxon is speaking on Newstalk ZB this morning on the back of announcements on millions of dollars of new classroom construction and revelations of concerns about NCEA. Luxon was yesterday in Drury, Auckland, with Infrastructure Minister Chris Bishop and Finance Minister Nicola Willis. They said $6 billion worth of construction projects would begin between now and Christmas. Today, Luxon is due live on air about 7.37am. Listen to the interview via the link below. Education Minister Erica Stanford last Friday announced a $120 million spend on building more classrooms in Auckland, along with the creation of a new school property agency. Two new school sites were also revealed. It had earlier been announced the Government was ditching open-plan classrooms and opting for standard designs. Following the education policy announcements, the Herald then revealed a briefing document to Stanford about NCEA. The damning Government briefing raised significant concerns about the credibility of the country's main secondary school qualification. The document, obtained exclusively by the Herald, was presented by officials to Stanford in June. The minister is expected to announce proposals for the future of NCEA. Among the red-light alerts to the minister is that the flexibility built into NCEA, including regarding what assessments students sit, means courses can be structured around those perceived to be 'easier' to accumulate credits. The Auckland schools getting new classrooms include: Bucklands Beach Intermediate – 2 classrooms Helensville School – 1 classroom Kauri Flats School – 4 classrooms Lincoln Heights School – 6 classrooms Macleans College – 8 classrooms Massey High School – 8 classrooms Mission Heights Primary School – 6 classrooms Mountain View School – 6 classrooms Northcross Intermediate – 8 classrooms One Tree Hill College – 6 classrooms Orewa College – 12 classrooms Panama Road School – 4 classrooms Papakura Normal School – 10 classrooms (in addition to the two learning support classrooms already announced) Papatoetoe Central School – 4 classrooms Papatoetoe East School – 4 classrooms Papatoetoe Intermediate – 6 classrooms Papatoetoe South School – 6 classrooms Puhinui School – 2 classrooms Pukekohe North School – 4 classrooms Rangitoto College – 10 classrooms Te Kura o Pātiki Rosebank School – 4 classrooms Takanini School – 4 classrooms Tuakau College – 6 classrooms Whenuapai School – 6 classrooms Projects announced yesterday included:
