NZME Limited (NZM) Earnings Call Transcript & Summary

Welcome to the 2023 NZME Investor Day.

Here everyone, hello, and welcome to New Zealand Media and Entertainment's Investor Day for 2023. Thanks for joining us today as we provide you with details of the progress we've made towards the strategic targets that we set for the business back in 2020 as part of our 3-year strategy. We're proud of what we've achieved through what has been an extremely challenging economic operating environment during and post the pandemic. We are now at the end of the 3-year period and myself and members of NZME's executive team look forward to sharing details of how we [ feared ] in meeting those targets. We'll also share the details of our revised strategy to ensure future growth for NZME. On the following pages, I will provide an update of our strategic targets for the last 3 years. I'll then provide some further context on our short-term outlook. We'll then move to cover our revised strategy for the next 3 years. I'll then hand over to David Mackrell, our Chief Financial Officer; who will provide you with an overview of our business performance. Following that, Jason Winstanley, our Chief Audio Officer will provide an overview of our audio business, which includes our mini radio brands our digital audio platform, iHeartRadio, NZME's high-performing podcast network. Carolyn Luey, our Chief Digital and Publishing Officer, will then outline our publishing business, which covers both our print products and our digital platforms. And finally, Greg Hornblow, our Chief of OneRoof will then provide details around OneRoof's performance and plans as the fastest-growing property platform in the country. Our Chairman, Barbara Chapman will then join us and will be happy to take any questions you may have. But first, I'd like to set the scene for today's presentation by sharing with you the phenomenal scale and reach of NZME's platforms. These are enjoyed by our loyal readers, listeners and our audiences each and every day. We reached more than 3.5 million people across the country with more than 91% of the people living in Auckland, engaging with our platforms each month. We reached almost 90% of people living in the North Island and 72% of self-islanders, that's a growing audience for us. You will see a number of our market brands highlighted in the slide under each of our divisions of audio, publishing and OneRoof. Our brands are identifiable. They are well-known and popular. They engage audiences across the country, and they reach hundreds of thousands of Kiwis each and every day. These brands and platforms deliver exceptional content to our audience and reach to our advertisers. At NZME, we're incredibly fortunate to be governed and supported by an engaged and independent Board with diverse experience and backgrounds. Our Board Chairman, Barbara Chapman, will join us a little later for the Q&A section of our presentation today. I'd like to say a big thank you to you, Barbara, to Carol Campbell, David Gibson, Sussan Turner and Guy Horrocks for their support of myself, the executive team, and our wider NZME team over these past 3 challenging years. Thank you for your ongoing passion and commitment to NZME. We very much appreciate your ongoing guidance, extensive knowledge and your support. We have a powerful team of more than 1,200 committed team members here at NZME. NZME's employer promise, this could lead anywhere, highlights the limitless growth and development opportunities available at NZME. In addition to an external advertising campaign to attract new talent to NZME, we also have a number of new initiatives to help inspire our team right across the country. This includes a new leadership program and induction for new starters and ongoing reward and engagement activities. These come under three pillars: Inspire Me, Coach Me and Develop Me. We remain committed to fostering an innovative, engaged and inclusive workplace. Having initiatives to support a great workplace culture, providing learning and development opportunities for everyone and creating exceptional leaders further ensures the future growth and sustainability of our business. We are really proud to see that NZME's employee engagement is now ranked within the top 10% of media companies globally. At NZME, we're committed to protecting the craft of journalism and broadcasting. We do this by making a positive impact for our communities, our people and playing a part in predicting the environment. We strive to connect and empower our communities right across New Zealand, including audience of 3.5 million. We provide diverse, balanced, quality, trusted news, and we facilitate conversations about the topics that matter most to New Zealanders. As I just noted, we are also committed to providing a workplace that fosters innovation engagement and inclusion. We're committed to reducing and mitigating our environmental impact and we believe we have a critical role to play in utilizing our platforms to grow community connection and engagement on local and global environmental issues. NZME sustainability program is aligned to the guidance set out in the UN Sustainable Development Goals. We also benchmark our efforts against global sustainability standards, industry trends, our media peers both here in New Zealand and globally. Turning now to look at the three strategic priorities that we see in 2020, these had clear targets for the business to meet by the end of 2023. And I know many of you will be very familiar with these by now as we're at the end of our 3-year strategy. Shortly, I'll speak about our strategic focus, but first step, let me recap. Our three strategic priorities were to be New Zealand's leading audio company, for the New Zealand Herald to become New Zealand Herald, and for OneRoof to become your property destination. Under each of these three key pillars, we had a number of focus areas. They also had measurable targets, which I'm really pleased to be able to update you on today. Over recent years, we've had a large focus on growing digital revenues. This is a key part of our digital transformation. Digital revenues have shown strong growth over recent years across each of the three pillars. It's pleasing that this has continued during the tougher economic climate. You'll note from our presentation that we are committed to growing digital revenues, and it is a core part of our future, improved profitability at NZME. With the digital growth that we've just discussed, every business is showing a change in the digital mix of revenue. Digital audio is making inroads. You'll hear later today that we have more than 70% market share versus our key competitor and that we have significant potential for further rapid growth. Digital revenues within both our publishing advertising and reader revenue now have significantly changed the mix of print versus digital revenues. Finally, with the growth in oneroof.co.nz, a transformational change is happening within this business. Across NZME, total digital revenues have more than doubled as a percentage of total revenue since 2019. Digital revenue now represents 29% of NZME's total revenue. So let me now take you through the scorecard versus the targets that we set ourselves in 2020. Audio has delivered a very strong performance over the years. We've seen audience share growth over the last 3 years. However, we're not quite to the levels we set. We've got plans to improve this. Radio revenue share has also grown well and continues to do so in the second half of 2023. More on that a bit later. And digital audio has outperformed our expectations and will feature strongly in the years ahead. Finally, EBITDA margins are expected to reach the target levels. Overall, this is a pleasing result for the audio business. The publishing business has made significant progress in its digital transformation also. This is clearly highlighted by the strong growth in subscriptions with 56% of subscriptions now being digital. Additional digital advertising revenue has become a much bigger portion of total advertising revenues. The percentage of households subscribing target was not quite met. That reflects a growth in the number of households within the country. While profitability has been very strong over recent years, this year has been impacted by the economic downturn and lower overall market advertising revenues, while EBITDA margins are stronger in the second half of the year, there will not be enough to hit the strategic targets that we set just 3 years ago. The publishing business will continue with its digital transformation, though, in the years ahead. So finally, let's turn to the OneRoof scorecard and its endeavor to be your complete property destination. While there's still a gap in total listings to Trade Me, you'll see later in the presentation how this looks right around the country and versus other competing platforms. With the real estate market quieter in the first half of the year, we did see some overall audience down slightly. However, the gap to Trade Me continued to close. We've seen strong growth in listings upgrades, and we've been achieving records in the second half of this year. This will result in OneRoof continuing to see more and more of its revenue being digital, increasing the digital versus print revenue mix. As signaled last year, we did not expect to achieve the OneRoof EBITDA margin target this year as we continue to invest in OneRoof's growth. We are currently on track, though, for OneRoof to be profitable in the second half of this year. oneroof.co.nz is currently delivering record revenue results on a regular basis. So let's now talk about 2023, specifically, the environment we're operating in and the 3 years ahead. The charts on this page will not be new to most of you. NZME has operated amidst a backdrop of difficult trading conditions over the last year. A number of outcomes from this were clearly evident in the scorecard that we just discussed. Market commentators note that we've some time to go before we'll see significant improvement on some of these key metrics. However, improvements are likely to be on the horizon. We've seen improvements in confidence levels. While business confidence has been at lows over the last year, it has recovered well and is now in strong positive territory in October 23. This bodes well for future advertising revenues. However, consumer confidence remains under pressure. High interest rates and increasing unemployment will hold consumer confidence lower for some time. As Westpac note, New Zealand remains on course for a period of subdued economic growth. We've been pleased to see business confidence improving as per the last chart. It's a great barometer of what we expect to happen to advertising revenues. We've seen a trend of advertising revenue improvement in the second half of this year. However, it has not yet returned to consistent growth. In addition, we've seen advertisers being extremely cautious with many expected bookings just not turning up in the month. Given this inconsistency last week, NZME updated its earnings guidance for 2023. As just noted, the economic environment over the past year has been difficult. While first half advertising revenues were down 7% year-on-year, the second half has seen improvements in advertising revenues with some months even in growth. Given this, NZME amended its guidance for EBITDA to be between $57 million and $59 million for 2023. As I noted earlier, we are seeing some strong results from OneRoof off the back of an improving real estate market. Quarter 3 saw OneRoof digital revenues grow 16% year-on-year and October saw an increase of 23%. The Board regularly turns its mind to capital management. As noted here, the Board wishes to reiterate it remains open to returning any excess capital, but we will review the company's capital management options in February of 2024. Let me now turn to focus on the next 3 years. Global platforms continue to demonstrate the value that they are creating for shareholders. Digital transformation is at the heart of these businesses. On the left, iHeartMedia now delivers 26% of its revenue by digital audio. NZME is leading in the market in this category in New Zealand. The New York Times has proven itself as a leading publisher globally with significant digital subscription growth. NZME is the leading digital new subscription business in New Zealand. And finally, Domain has delivered strong shareholder value creation as the #2 real estate listing portal in Australia. OneRoof has grown quickly and is achieving record growth in real estate classifieds here in New Zealand. These three global platforms showcase clear pathways for shareholder value creation for NZME in the years ahead. Over the last month, we've organized our publishing business into separate digital and print units. We are operating as a truly digital-first business. This now allows us to run the businesses with a focus on understanding the key drivers of audience, performance and profitability within these two units. Let me now, for the first time, overview the profitability of each unit. I'm delighted to report that NZME has a profitable digital business that can fund journalism. The print business currently delivers the majority of the profitability and a 21% EBITDA margin with the digital business margin at 13%. However, it's worth highlighting that the digital business and EBITDA includes our fully loaded editorial and newsroom costs, only a small amount of print content production and editorial costs are allocated to the print business. This is a core part of running a digital-first newsroom. This is a testament to the fact that the digital business is now funding journalism into the future with the print business focused on maintaining profitability and delivering strong cash flows for many years ahead. The implementation of the new operating model provides clear line of sight within these businesses and the crossover of profitability that will occur in the years ahead. This clear line of sight is critical to understanding the profit pools from these businesses. As I just noted, we're pleased to have a profitable digital business that has ability to fully fund New Zealand's leading journalism. The digital business now has autonomy to make decisions that are right for its audience and its subscribers, and allows it to clearly consider the opportunities and the investments for the digital businesses succeed. The print business can clearly focus on its products and profitability. We believe that this will extend the runway for the print business. At some point, there will be decisions to be made between print and digital. This separation allows us to clearly understand this inflection point and provides clarity for future decision-making. The separation of the digital and print businesses is a key strategic move for our audiences, our customers and importantly for NZME. Let me now introduce you to the three strategic pillars that have evolved as we focus on our strategy for the coming 3 years. We want to be number one in audio. This means that we will create the most listened to and loved content. We will monetize this by delivering customer solutions that grow revenue share, and we will capitalize on our leading position in the podcast market. We want to be New Zealand's leading news destination. We will be that by scaling digital audiences and monetizing them through our news platforms. We will use our expert journalism to grow our digital subscription revenues. And as just noted, we will run a high quality and efficient print business. Finally, we want OneRoof to be your central property platform. To do this, we will provide a superior listings experience and performance. We will monetize this audience and listings while also accelerating growth of our non-listing portfolio. You'll hear more on each of these shortly. We believe today, we are outlining a digital-led strategy that is focused on delivering superior returns. This strategy will set us apart from our competitors, and we expect it to drive returns for shareholders. Our audio business has significant opportunities that are improving our audio profitability. In publishing, we are investing in our digital publishing platform and a new business of journalism operating model. As just noted, we have a profitable digital business that will fund journalism for the future generations. Our OneRoof business is at a tipping point that is now profitable and we remain confident of the significant shareholder value that can be created within this very large profit pool. We also believe the competitive and economic environment support and are conducive to NZME delivering superior returns through its digital led strategy. I'll now pass over to our Chief Financial Officer, David Mackrell. David has been with NZME's as CFO since March 2019. and he'll be well known to many of you. He has responsibility for our finance, technology, legal and strategy functions right across the business. Thanks, David. Over to you.

Thanks, Michael, and [ cure ], everyone. It's great to have you all joining us today. Let me now update you on how we've traveled over recent years. The chart on the left shows revenue by division over the last 5 years. It shows the impact of COVID on 2020 and 2021, and then the impact of the challenging economic environment on 2023. You can also see the changing revenue mix with the growth in digital publishing revenue offsetting the decline in print-related revenue. The chart on the right shows the resulting earnings impact with EBITDA and NPAT improving in 2022, that are expected to be lower this year as a result of a weaker demand environment. We are focused on improving these results in the years ahead. We implemented a number of initiatives in 2020 to permanently reduce the cost base by $20 million. Our continuous focus on the cost base has been maintained, ensuring that the 2023 cost base is forecast to be below the 2019 level despite the inflationary pressures that have been evident during this time. Investment in the growth of OneRoof together with the acquisition of BusinessDesk have increased the core cost base, albeit partially offset by the disposal of GrabOne in 2021. People costs, which is the most significant expense category, have increased due to wage and salary inflation. Print volumes have reduced significantly, resulting in lower print and distribution costs, albeit higher paper prices and distribution rate increases have partially offset the volume-related reductions. We remain focused on containing the cost base moving forward. Capital expenditure has now stabilized at around $10 million per annum following reduced spend in 2020 and 2021 in response to COVID. This level of spend is similar to 2019 adjusted for the change in accounting treatment of Software-as-a-Service related development spend. The majority of annual capital spend is on product development of our digital platforms in line with our strategic priorities. Spend on broadcast and technology infrastructure is reasonably consistent year-on-year. Alongside the annual capital expenditure, there is typically $1 million to $3 million of Software-as-a-Service development costs which are treated as an operating expense. We envisage maintaining this level of spend as we progress over the coming years. As part of our capital management program, we are very focused on cash flows. The chart on the left shows that the group continues to generate strong free cash flows and has done so over the last 5 years. Reducing net debt, was our key focus from 2019, resulting in the business achieving a net cash position at the end of 2021. This enabled a capital management program to return substantial excess capital to shareholders. The company's target leverage ratio remains at 0.5x to 1x EBITDA pre-IFRS 16. However, with the current economic uncertainty, the company intends to operate at the lower end of this target leverage ratio with leverage expected to be around 0.3x by the end of the year. As Michael mentioned, the Board will continue to monitor this carefully. I just noted the substantial return of excess capital to shareholders in 2022. The company returned $43 million to shareholders in 2022 through the payment of $25.4 million in dividends, including a $9.7 million special dividend, and $17.6 million through the repurchase of shares. The bars on the left of the chart showed the dividends declared each year with the last year, including $0.09 per share of ordinary dividends and a $0.05 special dividend. On the right hand of the slide, the bar shows the dividends paid and shares repurchased each year. As you will note, there have been significant cash distributions to shareholders over recent years as part of NZME's capital management program. We expect significant change in the earnings mix over the coming years. The pie charts on this slide highlight the transformation of the business that has occurred and we expect a continued transformation over the next 3 years. Moving from the 2019 chart on the left, to the 2023 chart in the center, the growth in share of earnings from audio is evident in the people segment. The emerging relevance of digital publishing is shown by the dark green segment now that we are splitting it from the print publishing in light green. Looking forward to 2026, the right-hand chart shows the expectation that digital publishing profitability will exceed print. And that OneRoof will be making a significant contribution to group profitability. We expect that this transition and earnings profile will significantly improve the valuation profile and metrics of the business. It really is an exciting digital transformation. Let me now hand you back to Michael to introduce the team.

Thanks, David, for taking us through those trends in both revenue and profitability. I'd now like to introduce you to Jason Winstanley. Jason took up the role of Chief Audio Officer 2 years ago. Before that, he was NZME's Head of Talk, leading Newstalk ZB to record audience growth and continued commercial success. With 25 years of experience in music and talk radio, Jason is one of New Zealand's most experienced audio executives. In his role, Jason has responsibility for the content delivery across our audio business, including our news and music radio networks and our digital audio platform, iHeartRadio to support audience and revenue growth. Before Jason speaks, please enjoy the short clip on our audio business. [Presentation]

Thanks, Michael. I'm delighted to be able to present NZME's 3-year strategy for audio. We have built great momentum over the last 3 years, and our ambition is to capitalize on this and to be #1 in audio. To do this, we're focusing on three pillars within our strategy. Firstly, creating the most listened to and loved content secondly, delivering customer solutions to grow revenue share. And finally, to grow podcast engagement and monetize these podcasts. I'll now take you through each of these pillars, showing you the current trends we are seeing overseas and locally, and then providing you insight into our 3-year strategy. Let's start with the first pillar, creating the most listened to and loved content. Internationally, we continue to see radio consumption remaining high. This chart shows total audience for the 18 to 49 demographic in the USA. with terrestrial radio as a percent of live and time-shifted TV. Terrestrial radio's audience in this demographic is now 5% higher than live and time-shifted TV. This demonstrates that radio continues to be extremely important to listeners in the USA. We now focus on the overall audio consumption in the USA. Terrestrial radio remains extremely important and digital continues its strong growth. On this graph, you can see the dark purple bars, the smaller ones on the chart. They have a percentage of Americans who have listened to a podcast in the last month. The lighter purple is the percentage that have listened to any form of online audio in the last week. And the lightest purple being the largest bars are the percentage of Americans that have listened to terrestrial radio in the last week. Within the audio ecosystem, terrestrial radio in the USA is still the primary platform for consumption, it's the same with the New Zealand. Digital continues to display robust growth across both podcasting and streaming and is adding incremental listeners. The audio landscape is categorized into two primary segments, subscription-based platforms and ad-funded platforms. The left-hand graph here is showing a little audio consumption by platform, including subscription and ad-funded in the USA. AM and FM radio on this graph includes both terrestrial and streaming radio and commands a substantial 37% share of the overall audio consumption market. On the right, we're looking exclusively in ad-supported platforms where radio continues to maintain its preeminent position, claiming a commanding 69% share. Podcasting has grown rapidly to reflect 19% of all ad-supported consumption. We see significant potential to continue to grow this. Let's focus further on the ad-supported listening for now. On the left graph here, you can see this reinforces that AM/FM radio, which includes terrestrial and streaming radio still reaches the most people as an ad-supported platform. A significant portion of these listeners takes place on digital platforms. And on the right here, you can see that in the USA., nearly 20% of radio listeners is now consumed digitally. This has the advantage of content being available to audiences on more devices and in more moments. And technology is enabling these moments. Hearables are the cordless headphones or in-ear buds that are now the societal norm. They have made audio accessible like never before. On the left chart here, you can see the size of the global hearable market is forecast to increase substantially in the coming years as people use these to stream audio as they go about their day. The right-hand chart reflects the trends of smart speakers and connected devices, whether that be your car, your TV or even your refrigerator, these are increasing the moments where audio is easily accessible. While those owning a home radio is slowly declining, smart speaker ownership is increasing with the need effect being more opportunities for audiences to engage with us. Now let's take a look at some trends in New Zealand the 2023 Infinite Dial study has just been released. The study tracks mobile behaviors, internet audio, podcasting, social media, smart speakers and more. This is the second year we've had the study here in New Zealand, and it provides us great insights and allows us to compare trends to international markets. The latest report shows that 92% of New Zealanders listen to audio each week. This matches consumption of free-to-air TV and video streaming services and far exceeds the use of social media. We have a significant opportunity to further capitalize on this audio reach. Let's now focus on commercial radios reach in New Zealand. 3.4 million New Zealanders listened to commercial radio each week. This has remained incredibly consistent over the last 5 years and shows the power of the medium. The chart you can see on the screen demonstrates the consistency across New Zealand's major markets, with the purple bars here showing commercial radio audiences in those markets and the black line illustrating the total population in those markets. Radio remains highly engaging with audiences listening for over 15 hours each on average per week. Digital audio consumption has experienced significant growth in the last 6 years. On the chart on the left, we have online audio consumption in the USA, Australia and New Zealand. And as you can see, we are in line with these international markets. On the right, the chart shows that we have the highest rates of consumption among individuals aged 16 to 34 were a remarkable 94% engaged with either digital radio or exclusive streamed audio content on a monthly basis. It's pleasing to see younger audiences engaging with audio content. Here at NZME, we are well positioned across all parts of the audio ecosystem when compared to our local and international competitors. The chart on the screen NZME at the top and our competitors below. We have noted where each of the brands has an offering across radio, music streaming and podcasting. We also note the audio app that is used. At NZME, we have offerings across terrestrial radio, digital radio, ad-funded music streaming and podcast. No other competitor matches us with the breadth of offering. Spotify is a large player in the market due to a telco in New Zealand providing subscriptions as part of a mobile bundle. This audience is unable to be reached by advertisers, and therefore, provides an opportunity for us. NZME's product and multiple touch points allows us to not only engage with audiences but also provides extensive opportunities for advertisers. NZME brands extend across broadcast and digital as we look to develop more content across all audio channels. We are active in 27 markets around New Zealand with 147 commercial radio stations. NZME has launched 18 new original podcasts so far this year, adding to our catalog of more than 30 catch-up radio show podcasts and an extensive selection of international podcasts. The Mike Hosking Breakfast podcast is all of the key content from New Zealand's #1 radio breakfast show and is currently New Zealand's #1 podcast. Sex.Life as an original comedy podcast created by NZME with two of New Zealand's leading talent and has gained a loyal audience base. We have season 2 on the way next year. As you can see, NZME has a diverse content offering for both our audience and advertisers. Our award-winning brands target all the key demographics, ensuring a wide and varied content offering to meet the needs of New Zealand's audiences. On the chart here, our brands are displayed by target audience, youngest on the left, oldest on the right. Our news and talk brand, Newstalk ZB on the top right with a target demo of 45 to 59, remains the leading station in New Zealand with the biggest radio audience share and cumulative audience. Our top 40 brands NZME on the top left with a target demo of 18 to 39 actually has the most audience in the commercially attractive 25 to 54 demographic. Our digital exclusive content includes the NZME podcast network, and newly launched ad-funded music service, iHeartRadio playlists, and the alternative commentary collective, New Zealand's leading sports entertainment offering. With all our brands, we ended up being the leading company at the 2023 New Zealand Radio awards, winning 6 of the 8 Premier Awards. Let's look at the performance of our brands, both terrestrially and digitally. 2 million New Zealanders listened to an NZME radio station each week, either terrestrially or via iHeartRadio as seen here on the chart on the left. The middle chart shows our station share with a dark purple representing our music brands, and the light purple, our talk offering. While our talk audiences normalized post the strong news cycle generated by COVID, we have seen growth with our key music stations, which is part of our strategy. On the right chart, you can see our digital audio total listening hours. The dark purple part of the bar is podcasts, and the light part is streaming. We are pleased to see continued growth with now more than 9 million listing hours per month. We aim to grow all of these metrics, but more on that later. Now let's take a look at the devices that our audience are using to listen to our brands. Mobile devices continue as the dominant device for audio consumption of NZME's brands. While connected devices now have surpassed desktop listening, as you can see on this chart. Connected devices includes TVs, gaming consoles, watches and smart speakers. In New Zealand, ownership of smart speakers lags behind global markets, currently standing at only 22%. This presents a great opportunity for NZME as ownership increases in the coming years. Let's take a look at the entire commercial radio market and the audience for each brand on our bubble chart. The horizontal axis on this chart is the average audience age of each brand. The vertical axis is the percentage female versus male. And the size of the bubble represents the cumulative audience. NZME stations are highlighted in purple here, and our direct competitor MediaWorks in gray. A key area of focus for us is closing the gap in the 40 to 50 demographic with our brands, The Hits and Coast. We want to see the average age of The Hits grow slightly older, and the Coast average to grow slightly younger. We also want to see all of our bubbles grow in size, resulting from bigger audiences. Speaking of The Hits, it's one of our priority brands with music and content targeting 30 to 49-year olds. It is pleasing to report our strategy is working and has delivered audience growth throughout 2023, and as shown here on the left-hand chart with the total New Zealand station share growing over recent years. On the right, you can see the performance of Jono & Ben or our network breakfast show. They've gone up 6 audience surveys in a row. We're really pleased with the show and how it is performing. We're going to be launching a new afternoon drive show next year on The Hits to continue the brand's growth. We're excited about the growth opportunity that we see with The Hits. Now let's take a look at Coast. Coast is focused on the 40- to 59-year old demographic and is our easy listing brand here in New Zealand. We have made a number of changes in the last 2 years, introducing new talent and making some content changes. We're now seeing the positive impact of those changes as Coast delivers audience share growth. Three charts at the bottom here show the three biggest cities in New Zealand: Auckland, Wellington and Christchurch. We've seen solid growth in each market over the last 2 years, demonstrating our strategy is working. The Coast team are producing some excellent podcast as well. This includes We Need To Talk with Toni Street. These are giving great audience engagement and advertiser commitments. It's also pleasing to note we have seen 30% growth in iHeartRadio total listening hours for Coast when you compare it 2020 versus 2023. Speaking of iHeartRadio, it is, of course, our digital audio platform that we licensed here in New Zealand. It's a one-stop shop for radio, music and podcasts. On this slide, you can see the functionality that the platform provides us. iHeartRadio gives us market-leading functionality for both consumers and advertisers. This year, we have launched playlists. It's an ad-funded music streaming service offering themes and greater playlists across multiple genres, whilst allowing listeners to build their own playlist all for free. We continue to make great use of the talk back function allowing for real-time feedback and engagement with listeners via the iHeartRadio app on smartphones. Again, this is a market leader and one of the benefits of being on the iHeartRadio platform. We have 1.3 million registered users and integrations across more than 250 different devices. We are working hard to ensure we can access and utilize the data and personalization capability that the iHeartRadio platform affords us, but more on this shortly. Let's now summarize the key areas of focus for us over the next 3 years as we create the most listened to and loved audio content. We want to grow market share with The Hits and Coast. We have seen good results in recent years and know there is more to deliver. Further leverage the iHeartRadio functionality and road map, it represents a competitive differentiator for us in the market, grow our total digital audience even further. And be seen and heard on all phones and devices. This aids discoverability and allows us to then bring the audience back to our own platforms. Now let's move to our second pillar to deliver customer solutions to grow revenue share. First, let's take a look at what is happening globally. iHeartRadio is the leading audio media company in the USA, reaching 9 out of 10 Americans each month. On this page, you can see iHeart's financial results. We are in the first 6 months of this year, total revenue was USD 1.7 billion. Digital revenues now make up 28% of the total revenue at $483 million, up from 26% in 2022. Podcast revenue continued to grow, up $19 million to now be 10% of total revenue, which is $173 million for the first 6 months. These figures clearly demonstrate strength and growth of digital audio. This is why we see iHeartRadio as the foundational platform for NZME's digital audio growth. Research from the USA shows a continuing issue with advertisers and agencies. They have a very different perception of platforms when compared to the reality of the actual audience behaviors. In these charts, you can see advertisers and agencies perceptions of various audio platforms and then the actual share of time spent with each platform. The perception advertisers and agencies have of AM/FM radio is well below how much audiences are actually using it. Advertisers and agencies perceive that 26% of time is spent on ad-supported AM/FM radio, where in reality, it is a massive 69%, a huge variance and opportunity. Pandora and Spotify ad-supported platforms on the other hand, have a far higher perception level. We have an increased focus on audio advocacy. This is providing agencies and advertisers with clear facts and research, allowing them to make the best decisions on where to spend their advertising dollars. As you'll note, it's important that we change perceptions with reality. Now let's take a look at the radio advertising market revenues in New Zealand. On this chart, you can see the total radio advertising revenues back to 2016 and a forecasted figure for 2023 of $231 million. 2022 revenues were an increase on 2021 revenues heading back closer to pre-COVID levels. 2023 has been a challenging year for revenue so far but we are seeing signs of the audio market recovering in the second half of this year. Our direct sales channel represents approximately 70% of our revenues for audio, with media agencies delivering the other 30% of revenue. As we've noted previously, this is the opposite of the Australian market where agencies revenues are dominant. This provides an opportunity for NZME to deal directly with end user clients. Now let's break down the total New Zealand radio market revenue by month over the last 3 years. The bars on this chart show the total radio revenue per month with the dark purple segment being NZME's revenue. The light people in the rest of the audio market that is measured. The black line on this chart represents our NZME market share each month. While 2023 has been challenging due to economic conditions, we have increased our market share, which is one of the key metrics in our 3-year strategy. This year, we have begun measuring the digital advertising revenue market share against our key competitor. This confirms the strength of our proposition with NZME achieving over 70% revenue market share. Growing total revenue and market share will continue to be a focus over the next 3 years. Digital audio revenue continues to also be a major focus for us at NZME. On this chart, you can see our total digital audio revenue over the last 7 years with the purple bars and the black line shows the percentage digital makes up of our total audio revenue. NZME's digital revenue continued its strong growth and is forecast to be more than $8 million this year. It will end up around 7% of our total audio revenue for 2023, which is well ahead of our 3-year strategic goal. Podcast in this forecast to make up 30% of our digital revenue this year and is a key area of focus for us, which I'll speak more about shortly. NZME is able to commercialize podcasts on any device or platform. But again, I'll take you through this shortly. This growth in digital audio is delivering the revenue market share success that I noted on the previous chart. With increased digital consumption comes increased data, increasing our utilization of this data for both content recommendations and personalized advertising will aid monetization going forward. We will provide audiences better content recommendations, ensuring they are more engaged. As you can see here, using iHeartRadio, we can recommend more of NZME's content to audiences based on their listening habits. There is now more demand from advertisers to buy specific audiences. We can use the data available across all our NZME digital platforms to better personalize advertising for our commercial partners. First-party data is a key area of focus for us, ensuring we know more about our audiences and how they're using NZME's products. As I mentioned earlier, NZME is well positioned in the audio ecosystem with capability to deliver advertising across digital radio, music streaming and podcasts. On this page, you can see all our offerings across audio and the audiences we are able to deliver to our commercial partners. With digital radio, we have all of our key brands as well as international radio stations. We've got music streaming, including Artist Radio and our new playlist functionality. And in the NZME podcast network with our own original podcasts, radio station catch-up podcasts, and podcast from our international partners. One of the strengths of being with iHeartRadio is that we are able to engage with audiences on multiple devices and platforms. Consumption on the iHeartRadio platform represents 49% of our podcast listening. The other 51% is delivered on other podcast platforms. This capability enables us to have offerings in the places where our audiences are consuming. However, we promote iHeartRadio as the preferred platform within all content with the focus on growing last year of podcast consumption. To summarize now, here are the key areas of focus for us over the next 3 years as we deliver customer solutions to grow revenue share. We want to grow the total audio market revenue, accessing TV revenues that are in decline. Audio advocacy with agencies and customers is a key component of this. Deliver integrated campaigns utilizing NZME's wider assets, a differentiator from our competitors. And increasing data capability by accessing NZME's touch points across its multitude of leading digital platforms. Let's move to our final pillar now to grow podcast engagement and monetize. Podcast revenues continue to show strong growth in the USA. On the chart, you can see here the actual revenues for the last 3 years in black and in the estimated revenues in red. Last year, podcast revenues in the USA. were up 26% to $1.8 billion. If you take the U.SA population of around $330 million, for 2023, that is around $7 per person in ad revenue. If we extrapolate that out to the New Zealand market, that would give us a $35 million podcast market opportunity here. We estimate we're around 3 to 5 years behind the USA. market and maturity, but this is definitely a real growth opportunity for us. The great thing about podcasting is it provides incremental audience to the audio category. On this chart from the USA., you can see what 12- to 54-year-olds are giving up to consume podcasts. In this research, social media, the likes of TikTok, Facebook and Instagram, and video streaming YouTube are the two biggest activities audiences are giving up to listen to podcasts. This reinforces that podcasting is bringing new and incremental audiences to the audio category. If we now look at New Zealand podcast consumption, we can see that New Zealand is following international markets. In the chart on the left here, you can see the latest research from the Infinite Dial survey. It shows the percentage of the population that have listened to a podcast in the last month. New Zealand is now ahead of both the USA and Australia, with 46% of New Zealanders 16-plus having listened to a podcast in the last month. This is led by younger audiences who are more engaged with podcasts. 60% of 16- to 34-year-olds in New Zealand have listened to a podcast in the last month. We believe that many of these are incremental listeners within the market. The top podcast genres in the USA. can be seen here on the left, comedy, news, true crime, sport and health and fitness are the top 5. NZME is well represented in news and opinion, comedy and sport in New Zealand to ensure that we are delivering podcast content that we know resonates with our audiences. As well as that, NZME is a major advantage over our competitors and the fact that through our broadcasting and digital channels, we can support the promotion and discoverability of podcast titles. We will continue to test and learn with content so that we can fulfill the needs of our audience. Our podcast audience is showing significant growth in 2023. On this chart, you can see here the monthly downloads over the last 3 years. Year-to-date, we are up 56% on 2022, and had a record 4.8 million downloads of our own produced content in September. The strong and market-leading growth in podcast downloads is allowing us to offer unique opportunities for advertisers. We continue to celebrate the NZME is the largest podcaster in New Zealand. On the Triton NZ pod ranker, we have held the #1 position for 25 consecutive months. On this chart, you can see the pod ranker for September 2023 by network, showing our strength in podcasting. We're also a sales house representing audio boom and SiriusXM podcast offerings here in New Zealand, which gives us a huge commercial network, 14x that of our nearest competitor. This scale allows us to offer compelling propositions to our customers. With podcasting, we're able to distribute and commercialize our offering on all platforms. This includes iHeartRadio, Spotify and Apple. We're also able to represent other producers' content across these platforms. This chart displays our podcast downloads by quarter. The gray part of the bar is the content produced by NZME. The purple is the downloads from the partner content that we represent. Having scale and podcasting is essential to enable advertisers to reach audiences. We have our own content and our partners' content that we can monetize on platforms that we own or others that we use. The key areas of focus for us over the next 3 years as we grow podcast engagement and monetize them on. Firstly, to reduce new content in line with international genre preferences. We're already doing really well with this, but have some further areas to focus on. Continue to utilize NZME's platforms to grow podcast awareness and consumption. As I noted, we are already the leading podcaster, and we know we can continue this momentum. Increasing podcast consumption on our owned iHeartRadio platform will allow us to gain more insight into audiences via the data capability and personalization of the platform. And finally, leveraging all of NZME's assets, including sales teams will allow us to drive incremental audio revenue. We're really excited about the opportunities that our market-leading podcast proposition provides. Now I'll share with you our targets for the years ahead. Consistent with the last 3 years, we want to increase audience share in radio by 1 percentage point each year for the next 3 years. In addition, we want to increase revenue market share by 1 percentage point each year for the next 3 years. This will see a very strong business built over this time. Given the strong share and growth aspiration we have for digital audio, we want 12% of our total audio revenue to come from digital audio by the end of 2026. And finally, we want a profitable audio business with EBITDA margins of between 15% and 17%. We believe that these levels of growth will make NZME be #1 in audio. I look forward to answering any questions you may have after some of my colleagues have spoken. Let me now hand you back to Michael.

Hey, thanks for that, Jason. As you will have seen, there's some really positive momentum in our audio business despite a pretty challenging environment. It's great to also hear about some of the exciting future opportunities we have for that area of our business. We believe the future is really bright for audio. Now I'll ask Carolyn Luey, our Chief Digital and Publishing Officer, to provide an update on our publishing business. Carolyn was appointed to the role in August of 2021. She has extensive experience as a strategic business leader in large New Zealand telecommunications, technology and media companies. Carolyn has responsibility for our publishing business. This incorporates our national, regional and community print publications as well as our digital channels, including our subscription platforms such as New Zealand Herald premium, Viva premium and BusinessDesk. But before Carolyn speaks, please enjoy the short clip on our publishing business. [Presentation]

Thanks, Michael, and hello, everyone. We've had a big year in 2023 as our final year of delivering our previous 3-year strategy. I'm excited today to share with you our publishing strategy for the next 3 years and our new strategic priorities. I thought I would start by providing some context by talking through some of the big macro trends that have shaped our thinking and strategy. The news media landscape will continue to rapidly evolve over the medium to long term, where many global publishers are preparing for a digital-only world. We're anticipating that the news media landscape will converge across newspapers, magazines and TV. The key differentiator for audiences and advertisers will no longer be the channel. It will be about the different types of media like text, image, audio, video and multimedia. As NZME already operates across different media types due to our continued focus on innovation and diversifying our platforms, we are well placed to take advantage of this convergence. New York Times continues to be the gold standard in the global publishing market. So it was a useful benchmark to measure our progress against. NZME is now in its fifth year of our digital subscription with digital subscriptions revenue now representing 9% of revenues. At the same point in the journey, New York Times is slightly ahead at 12% of revenues. New York Times now has more than 40% of revenue in digital subscriptions and a key focus for NZME over the next 3 years is to continue to grow digital subscription revenues alongside digital advertising. We think we have a strong momentum and competitive advantage in being New Zealand's leading digital subscription business. In 2023, we have shifted into the next horizon of our digital transformation focus to further accelerate our digital growth in both subscription and advertising while maintaining our print business. We moved over recent years from being a print-centric digital model to one which is digital-centric hybrid model. We've transformed the operating model this quarter to create separate digital and printings to ensure we have dedicated focus on each. The biggest change has been for our newsroom where our news gathering teams are now fully focused on being truly digital first, while we now have a separate print content hub, which turns the digital content into a portfolio of high-quality newspapers. The new model simplifies the publishing part of our business and creates a streamlined end-to-end focus on each, setting us up for a digital-only world in the long term. We recently completed the Google News Initiative Publisher Sustainability Diagnostic. This tool is designed to help benchmark the performance of our publishing business that's the global community of publishers across four key drivers. NZME scored 82 on the diagnostic, which placed us higher than 90% publishers across the world. This confirms that we are well positioned long-term sustainability. Across the four drivers of sustainability, we scored well above the medium benchmark for financial, monetization and foundations. The key area of focus for improvement was in product and audience. We have an opportunity to increase focus in editorial and product to grow audience reach and engagement. This is a key area of focus for the next 3-year strategy and our new operating model accelerate progress in this area. Our vision is to be New Zealand's leading news destination, and we'll achieve this through the three pillars of our revised strategy. Scalable digital audience and advertising news platform, expert journalism that grow subscriber lifetime value, high-quality and efficient print business. Each of these pillars is focused on the core commercial drivers of our publishing business, the digital advertising business, the digital subscriptions business and a print business. Firstly, I will start with our first pillar, scalable digital audience and advertising news platform. Our goals are to deliver trusted journalism for all New Zealanders to expand audience through audience first focused [ quantine ] and personalized experiences. To create distinctive high-quality advertiser products and environments. And to build our first-party data to enable audience and revenue growth to modernize the platform foundations for future growth. Our newsroom of more than 300 expert journalist deliver nationwide coverage that reaches more than 3.3 million Kiwis each month. Our award-winning journalism is enjoyed by Kiwis across a wide range of brands, including the New Zealand Herald, our regional dailies and weekly community publications, Newstalk ZB and our four subscription products, Herald premium, BusinessDesk, Viva Premium and ZB Plus. These brands and journalist are well known across New Zealand or within their community. There are some of the key foundations of our growth ambitions. We have some of the best journalism talent in New Zealand, and every one of our journalists across our newsroom is committed to our mission. We are here to inform, explain and entertain reporting without fear or favor acting with dignity and respect. All is at the center of the debate. Agents of positive change and unswerving in our pursuit of truth for all of Aotearoa, New Zealand. Our journalism is focused on telling New Zealand's best and the most important stories that are engaging and trustworthy. Producing breaking news that is accurate, timely and provides valuable context. We will inspire and champion our communities and be an important advocate on issues that matter. Be a broad church offering analysis and opinion that challenges thinking and provides a contest of ideas. Every one of our stories looks to deliver on one or more of these key focuses. 2023 was like no other, and some of our bigger stories connected with our readers and with the nation were, our coverage of the devastating impact of Hurricane Gabrielle, where we partnered with the Red Cross to raise more than $27 million to those impacted. The New Zealand Herald Health investigation In Her Head revealed how our health system is failing women and expose their continuing misuse of surgical mesh and operations of child birth injuries. In the wake of the investigation to [ Aotearoa ] announced that these operations would be suspended. New Zealand Herald political reported Thomas Coughlan brought the story at Transport Minister, Michael Wood did not declare the shares owned in Auckland Airport when he became MP. Wood was dropped as Transport Minister and later resigned after it was revealed he had been asked to sell the shares several times. Our coverage of the All Blacks in the Rugby World Cup, well known Kiwis like Simon Barnett and New Zealand's places to visit demonstrate the breadth of our journalism. Last year, we launched the New Zealand's Heralds new brand positioning, news worth knowing, aimed at changing perceptions to be a modern trusted source of news across New Zealand. The focus for 2023 has been to build out a distinctive brand code and experience across all touch points. The brand campaign has successfully driven record to 55%, increased propensity to subscribe and our key brand mark, the gothic H is now recognized by 88% of people. This provides a strong platform for the next phase of the brand strategy. Over the next 3 years, we plan to build on the brand platform that has been created in 2023. We will continue to grow brand preference as the main source of trusted journalism in New Zealand, owning this position in market will become even more important against the backdrop of the growth of generative AI-driven content with hallucinations, misinformation and deep fakes. The next phase of our brand strategy is expand the brand to bring engaging lifestyle to life through our fresh creative platform, leveraging the gothic H and new positioning like reviews worth knowing and destinations worth knowing. As we look to expand our audience reach across New Zealand, we'll adapt our positioning to be locally relevant to grow brand preference alongside increased local journalism and a local product experience. To build a scalable audience in news platform, we have six priorities and building blocks to amplify our trusted journalism. Firstly, it starts with creating the right data foundations that will deliver deep audience and content insights for our newsroom. Secondly, we have four key audience expansion focuses, regional lifestyle, next-generation and diverse. For each of these, we will produce stories and perspectives for each of these key segments. Create a relevant product experience and then tell readers about it to drive brand preference. Our third priority is content planning, product and programming, which is focused on being audience first and delivering the right mix of stories at the right time and in the right channels based on user needs and behaviors. Our fourth priority is to enhance our storytelling by creating immersive content experiences that leverage technology-enabled production to make different user preferences. Our fifth focus is to build deeper reader relationships. As we know, one of the highest correlated publisher metrics to long-term sustainability is logged in users. The more you know about users, the deeper the relationships you can build with them, leading to higher subscription and advertising revenues. Our last priority is to modernize the platform foundations to create a scalable platform for the future. As the media ecosystem continues to evolve, so do the technology enablers. Over the next section of slides, I will dive deeper into each of these parties. In the modern newsroom, having strong data foundation is critical to building a deep understanding of audience and content to inform editorial decision-making. These insights are used to decide what types of stories to commission, the optimal channel and time to distribute stories and which reported stories are converting the most subscribers. We have three layers of data insights being used across the newsroom. Our daily editor scoring report and monthly reported scorecard are embedded across our newsroom as a tool to help them to improve quality and highlight what is performing and underperforming. The editorial monthly dashboard provides holistic audience, traffic and competitive insights while the user behavior heatmap provides insights on the optimal publishing times for traffic and conversions. We also have specific content-driven dashboards based on key content strategies. Our recent focus has been growing evergreen content, which has a longer shelf life than breaking news. The data insights have helped identify which content has evergreen value so it can be resurfaced again to drive traffic. One of our biggest opportunities over the next 3 years as per the Google News Initiative Publishers Diagnostic that I talked about earlier, is to expand our audience. We have identified three strategic segments for audience expansion. Regional audiences. We will build a deeper relationship with regional readers by having a dedicated digital first reporter hub, producing relevant local stories that we showcased through a regional product experience. Supported by local business advertising. We have experimented with the setup in the Waikato. Where we already have seen strong results, so we have a solid proof of concept to roll out progressively to other regions. Lifestyle and travel audiences. With the change in operating model we have shifted from a print magazine first focus model to one focused on digital-first readership. We will expand the topics and reporter rounds to grow audience and will realign the product experience to our digital first lifestyle brands like New Zealand Herald Lifestyle and Viva. Our next-generation audience has been a focus throughout 2023, with the launch of What The Actual, which has successfully engaged a Gen Z audience across TikTok and Instagram. The next focus is to expand [ news ] format and then a podcast to grow engagement and monetization potential. We now have a better understanding of Gen Z news consumption, so we'll translate that insight into new formats across existing forms. Our successful Te Rito [ critic ] program has driven a more diverse newsroom with many of the [ critics ] now fulfilling roles in different parts of the newsroom. Over the next 3 years, we want to continue to expand the diversity of our journalism, so we will explore the next iteration of the tertiary program alongside building on the success of Kahu. We're pleased that NZME and Te Rito program has just been recognized as a finalist in the diversity inclusion leadership category of the Deloitte Top 200 awards, which take place in the next month. Kahu now has monthly audience of 600,000 and has doubled in size year-on-year, driven by the expansion of content offering and the growing interest in Maori perspectives and stories. Our vision for Kahu is for it to be one of New Zealand's leading mainstream platforms for Maori storytelling by further building out quality content for identifying new talent, building partnerships and community engagement. One of the biggest shifts we are making in becoming a truly digital audience first newsroom is to embed a user needs planning framework to deliver on stories through an audience lens. There are four key user needs: Update Me, this is the traditional breaking news updates and makes up the largest proportion of our stories today; Educate Me, these are explainers that provide the reader with greater context to drive understanding; Inspire Me, this is emotion driven story is designed to engage the reader to feel something; Connect Me, this is action-driven stories that are focused on how to do something, journalism that is of service and provides useful information. A large language model, leveraging generative AI has been built and trained categories all stories into one of the user needs. This means that the framework will be actionable and measurable and can be adopted across the room. The main benefit of the shift is to unlock new story angles and shift from commoditized Update Me type content to stories with stronger performance that resonate with readers. One size fits are no longer delivers to the broad range of reader needs. Creating more immersive content experiences will be focused on delivering different formats based on reader preferences. Here are some examples of different content experiences that we are rolling out. Live news experience. This was launched this year to provide a richer timeline drum experience for big news events and a clear visual indicator of which stories are live and evolving. Summaries created by AI, many readers want a summary of the article before they commit to reading the whole article. Global publishers has been an uplift in engagement when summaries have been provided. Vertical video experience. With 80% of content consumed on a mobile device. A vertical video player will provide a more seamless experience and grow storytelling in a new format, particularly for the younger generation. Text-to-speech. With a phenomenal growth in podcasting, text-to-speech provides the ability for users to listen to news while they are multi-tasking and improved accessibility for those that are sight impaired. Generative AI has opened up the opportunities to deliver new formats efficiently, and we will continue to explore further formats to engage readers. Building deeper reader relationships is critical to future proofing the business, knowing who our users are, provides us with the ability to service more relevant content and deliver a more personalized experience. Our newsroom produces over 200 articles per day. A shift to a segmented homepage that balances editorial rules-based curation with personalization will deliver a trusted journalism of most interest to each individual reader. 80% of the top 15 stories on our redesigned homepage will be bedded for different segments to improve relevancy. One-to-one personalization will also be expanded, leveraging our browsing and location models to deliver recommendations into new modules and touch points across the site. We will leverage and extend our award-winning data capabilities to build out the segmentation model in [ journeys ], alongside ways of working to test, learn and optimize the experience for readers. Our first-party data strategy is a critical driver of building deeper reader relationships and unlocking more subscriber and advertising revenue. One of NZM strategic advantages in the local publishing market is the depth and diversity of our platforms and data. The New Zealand Herald, combined with our subscription data from Herald Premium, Viva premium and BusinessDesk, listening affinity data from iHeartRadio, and pitches [indiscernible] data from OneRoof driven car guide and travel gives us access to rich audience insights. We can then ingest the declared and infer data insights into our data platform and then enrich it with offline data or third-party partnerships. Over the next 3 years, we will continue to build out our first-party data, with our initial focus being on driving more known users that you can see on the left-hand side of this slide. By growing logged in users and capturing more behavioral data, we will grow out of the datasets we can use to build machine learning and predictive models to understand propensity to buy, propensity to churn, and next best action. These models will be activated to drive the audience engagement funnel and grow the subscriber base. On the right of this slide, we will be focused on building richer user profiles through progressive profiling to understand the user's intent, trends and tastes. This data will enable look alike and predictive models to be built out to scale audience targeting. These models will drive advertiser activation through enhanced audience targeting and deliver deeper audience insights to advertisers, growing overall advertising revenue. As technologies continue to change, we need to continue to invest to modernize our platform foundations and create a scalable platform for the future. There are three key foundational technology areas, which will help accelerate our digital growth as digital audiences scale. Development of a single NZME identity that will provide a privacy safe, frictionless experience across all platforms and devices. This will be a key driver of first-party data and delivering a more personalized experience across all of NZME's brands like New Zealand Herald, OneRoof, BusinessDesk, driven car guide and our radio websites. Our in-house recommendations engine Karma has been highly successful. We now need to transition it to a scalable service that can operate across different domains and platforms to drive audience engagement and recirculation across NZME's digital ecosystem. Consumers now expect a fully personalized customer experience which are driving the need to build a dynamic engine that can deliver the right message in the right channel at the right time to drive audience engagement and increase conversion across the funnel. Modernizing and scaling of the platform will enable greater agility and rapid extensions in the future. NZME's audience and platform delivers the digital advertising revenue opportunity as a premium publisher in the New Zealand market. The total digital display market has grown strongly post-COVID. However, revenue has been softer in FY '23 with the economic downturn. NZME's share remained stable with strong demand and market for quality audience. We believe that we can continue to grow overall digital display market revenue and share. NZME's key differentiator in a cluster digital market as being a well-known local New Zealand brand. A brand that delivers trusted content that is independently measured and delivers transparency to advertisers. With the growth in generative AI and made for advertising sites, advertisers are increasingly seeking out quality brand safe scalable environments that deliver client results. There is growing awareness from advertisers that not all digital inventory is equal. And the different types of campaigns demand the right mix of active and passive attention to be successful and deliver results. Digital media planning is shifting to consider attention goals and NZME is well placed to take advantage of this trend. Advertisers have started to consider climate change and are seeking out low-carbon media options. A key channel of focus is programmatic buying due to the large number of intermediary technology platforms and data centers involved in the value chain. NZME is actively managing its programmatic supply chain to offer lower carbon footprint option. One of the biggest disruptions coming to the digital advertising ecosystem is the duplication of third-party cookies in 2024. Advertisers campaign targeting will shift from third-party cookie-based to targeting individuals, groups of people with similar characteristics or contextual environment-based targeting. NZME is well positioned to take advantage of the disruption with a rich portfolio of targeting solutions across the spectrum. Like customer data matches by clean rooms to enable advertisers to target NZME's logged-in users. Industry-driven shared ID solutions that NZME's with like LiveRamp or Unified ID 2.0. NZME first-party segments that enable targeting different segments by profile, location, interest or intenders. Third-party interest topics, which will tie at 350 broad topics and quality intent-based contextual environments that offer 100% privacy safe way of targeting users based on the content of the page, whether as context, sentiment or affinity driven. NZME is able to operate across each of these solutions. With the continued growth in e-commerce, our key strategic focus is to build out a portfolio of ad solutions that will deliver massive shoppable experiences that are aligned to the path to purchase. Awareness driven products include interactive content video, which enables a user to select path of interest, this can be used by advertisers to engage users and understand their interests. Live Shopping was launched earlier this year and provides advertisers with our platform to engage users and drive awareness of a product in a unique and interactive way. Discovery led funnel products include Shopme feed-driven ads that can be served out across NZME's platforms to drive discovery of new products and offers. The selection product reviews specifically targeted at driving product evaluation and then conversion through to buy. We've also introduced ad solutions that will shorten the path to purchase, like shoppable pre-roll video that enables users to interact with pre-roll video and purchase directly from within the ad unit. And shoppable content which enables users to buy from within the content without leaving the site, delivering a frictionless buying experience. We have already trialed a number of these solutions in market and are ready to capitalize on the customer demand as it increases. The next pillar I would like to cover is expert journalism that grow subscriber lifetime value. Our goals are to expand expert journalism that resonates with key reader segments build out subscriber-centric product and vertical value propositions and grow subscriber lifetime value through our connected customer experience and dynamic paywall. The total addressable market for new subscriptions in New Zealand is significant at 1 million subscribers. NZME subscriptions is now at 221,000 inclusive. This includes 179,000 digital subscriptions, of which 128,000 are digital-only. As the category in New Zealand continues to mature, there is a significant growth opportunity for NZME. With the growth of corporate subscriptions since the acquisition of BusinessDesk, this has put downward pressure on yield. Over the next 3 years, it will be increasingly important to balance volume and value to continue to grow subscription revenues and profitability. The graph on the left highlights the change in mix in volume and yield in Herald Premium. The black lines are corporate. You can see as volume has grown, yield has declined, driven by unlimited user plans for large corporates and upsell to bundles with BusinessDesk with lower yields. The green is individuals. The volume has flattened with cost of living impacting cancellations, while yield has remained stable with the price increase from $5 to $6 per week flowing through during Q3. The graph on the right highlights the changes in BusinessDesk. The black lines are corporate, which has seen strong volume growth while yield has remained stable. The green line are individuals, where volume has grown slightly and yield has dipped with the big price promotion in Q4 2022. This was followed by yield improving with a significant price increase in Q3 this year. Our go-forward pricing strategies for Herald Premium and BusinessDesk will be differentiated to optimize revenue growth. For Herald Premium, we will focus on individuals growth through dynamic offers based on propensity to buy and ongoing annual price increases. While with corporate, we will adjust the pricing yield to remove unlimited user plan and reduced bulk user discounts. For BusinessDesk, we will focus on corporate growth lifting yields year-on-year as user activation and engagement grows. With individuals, we will focus on acquisition on the annual Wall Street Journal bundle and upsell to Herald Premium bundle. Pricing and yield has become a significantly bigger focus. Herald Premium subscriptions continue to perform well versus global benchmarks. The global benchmarks are provided by the International News Media Association, to collect subscription data from publishers across 35 countries. The key insight from the benchmarks is that NZME subscriber penetration of audience is above the top quartile. Meaning one of the key focus areas to drive growth is to expand audience in the subscription funnel. The two potential areas for improved performance is paywall stop rate and monthly churn which are both performing at the medium benchmark level. We have a number of initiatives to address these to lift performance as part of our 3-year plan, which I will be covering in the next few slides. NZME's reader revenue strategy has reached to the next phase of growth. Our digital subscriptions was introduced in 2019 with a new payable, as a minimal viable product, that is marketing and technology-led. With a big change in the newsroom to shift focus from audience to conversions. Over the last 3 years, we are focused on growing the volume of subscribers through focusing on product market fit and expanding into verticals. The newsroom have developed a clear view of the types of content that converts and engages and we have shifted to a cross-functional squad model to manage increased complexity. To continue to scale subscription growth over the next 3 years, we will need to invest and reinvent our approach to be more sophisticated to grow recurring revenue and optimize volume. We will need to invest in our technology platforms to build out a dynamic paywall engine that enable us to optimize conversion and yield at scale across a portfolio of subscription verticals. The newsroom will focus on user needs and developing new formats and methods that drive value perceptions and engagement. We will reinvent the operating model and add new talent and capabilities to truly embed being a subscription-led business and deliver our reader revenue strategy. Continuing to lift the depth and breadth of expert journalism is critical to the ongoing growth of our digital subscriptions. The more that our journalism resonates and engages our readers, the greater value they will see in their descriptions which will increase subscriber retention across the board. Here are some examples of our expert journalism that engaged our subscribers this year. Investigative journalism like BusinessDesk's business of health deep dive into the health sector, funding in different parts of the value chain. Power list that lift the lid on the big players across different industries like the top of McDonald's franchise owners across New Zealand. Analysis of the big events like the All Blacks Rugby World Cup journey and unpacking the 2023 general election. And finally, regular features like Jesse Mulligan's restaurant reviews and Shayne Currie's weekly, Media Insider column. We have a broad menu of journalism driving our subscriptions. And over the next 3 years, we will double down on growing successful format and going deep in key topics that resonate with readers across our different subscriptions. Since acquiring BusinessDesk in early 2022, we have grown its subscriber base 80% and have built a strong pathway for further growth. Our big focus has been to leverage NZME assets to grow BusinessDesk brand awareness. Over this period, it has grown from 44% to 54% along with strong growth in top line audience, which are close to 400,000 users each month. Podcasting has become a key part of the strategy to open up the audience funnel and engage with new audiences and getting them to sample BusinessDesk content. We have invested in growing the utility of the product offering with the launch of the new mobile app and building out the content offering using generative AI to summarize NZX announcements and developing new data visualizations like the fund source key saver comparison tool. We see significant opportunity to continue to grow the subscriber base and refined our reporter rounds to align with key growth industry verticals. While the Wall Street Journal bundle has delivered additional value to our high-value annual subscriber base, to drive both acquisition and retention. ZB Plus is our most recent addition to our subscription product portfolio. Our recent Curia Market Research poll highlighted a gap in the market for a publication targeted at a business audience that was creating clear constructive analysis and opinion. The proposition is focused on leveraging the strength of Newstalk ZB brand and opinion from the breakfast and drive shows, drawing its content from the key issues and topics from two of NZME's most popular radio shows. ZB Plus will be offered as a stand-alone subscription that can be bundled NZME's other subscriptions. Our focus over the next 12 months will be to enrich the content offering and build out features like commenting and users to drive subscriber engagement and value. To broaden the addressable market and drive growth of subscriptions, we will continue to build out subscriber-centric products and verticals. We have successfully deployed a build, partner and buy verticals strategy. We now have three subscriptions we have built from our own brands, Herald Premium, Viva Premium and ZB Plus. We have acquired BusinessDesk. And in July here, we launched the listener subscription in partnership with Are Media. We plan to continue with this approach to verticals over the next 3 years to add further breadth to our portfolio. To increase value perceptions and retention, we plan to deliver greater subscriber utility with the expansion of our puzzles and quiz proposition. Build on the success of the live streaming events we have run this year, and new features like article gifting. We also will explore introducing new products types aligned to specific user needs like an international subscriber offering targeted at expat Kiwis living abroad. App-only subscriptions, and the addition of podcasting and other multimedia. Subscriber lifetime value is a key commercial driver of growing recurring and subscription revenues. So we plan to invest in deploying a new dynamic offers engine. And when combined with a connected experience layer will enable us to deliver the right offer in the right channel at the right time. Taking a multichannel, multiproduct view of the customer experience will enable us to deliver a highly personalized experience that will maximize subscriber lifetime value and ensure we optimize every touch point and interaction. For example, our lowest value users are our unknown users that hit the New Zealand Herald website, and we know nothing about them. Our goal through the dynamic connected experience there will be to recommend them the next best article based on the article they have landed on. Serve up a registration gate so that we know more about them, or to have them subscribe to a newsletter, so we opened a new channel to engage with them in. Once a user becomes a logged-in user, we know more about their browsing behavior so we can give them a personalized story recommendation. From there, we can target them with a more relevant ad, which attracts a higher advertising CPM to lift the advertising ARPU of the user. Once a user is converted into a subscriber, we can then tailor the experience to focus on reducing propensity to churn by getting them to download the app or look to cross-sell them an additional subscription vertical with a discount to reward their loyalty. Orchestrating the experience layer over time and leveraging a dynamic offers engine ensures that every customer interaction has the potential to grow subscriber lifetime value and maximize value for NZME. The final strategic pillar I would like to cover today is our print pillar, focused on delivering a high-quality and efficient print business. Our goals are to focus on creating a stand-alone end-to-end print business that maximizes reader and advertising revenue, delivers a simplified product portfolio and streamlines print production to optimize contribution from the print business, and looks for strategic synergy opportunities through partnerships and collaborations. NZME's print business has strong audience reach with 1.54 million readers each month. Our print publications serve our readers across the North Island and include the New Zealand Herald with over 1 million readers each week. Our 5 regional dailies with over 280,000 readers each week. And our 15 community papers with 223,000 weekly readers. Newspapers play a really important role in keeping our readers in the know and connected to what matters. Overall, the print revenue trend continues. On the first chart, you can see that print reader revenue is forecasted to decline 6% year-on-year. FY '23 revenues has been impacted by cost of living and weather events. The second chart shows that despite the volume of print subscribers declining, this has been offset by strong growth in yield driven by cover price increases in H1 and the ongoing annual subscriber price reviews. Current subscriber yield per copy is $1.95, leaving significant headroom for further increases. The third chart shows the print advertising market. With the green highlighting the market revenue trends, which we predict will decline further in 2023 due to the challenging economic market conditions, while our share has remained stable at 47%. Our print business over the next 3 years will be focused on three key areas to optimize print contribution. Print subscriptions continue to be a significant part of our business and we'll look to maximize revenue through the yield improvement program, creation of a unique proposition to drive digital activation to future-proof revenues, and explore third-party relationships to drive acquisition cost effectively. We will look to maximize print advertising revenues by packaging it up to be easy to sell, align yield and reach across the week, and deploy a print-focused sales model in areas like classifieds. Our new operating model is focused on delivering a streamlined, efficient end-to-end workflow that delivers high-quality newspapers every day. We will continue to explore further opportunities to optimize and automate in this area. We have started to explore strategic synergies with industry print collaborations as many New Zealand publishers face similar trends and challenges. An example of this is that we have started to work closely with a regional publisher to help reduce their print and distribution costs in return helping to spread the fixed cost burden that NZME carries. We have a strong print business, and we are well positioned to manage it through the next phase of the life cycle. There are three key components of the print business that we have future state plans for as volume continues to decline. Print supply chain, we have actively diversified our print supply chain and aligned ink and plate suppliers with the industry, so we are well placed to negotiate and manage these for continuity of supply in the future. Our print plant and equipment located in Auckland is maintained by a team of in-house experts. The lease on the print plant expires in 2029, and we have options to extend in line with the life cycle of print as required. We also have an option to decommission parts of the plant as volume declines. Our distribution franchise network is managed by our expert in-house team, and we are actively growing third-party volume to offset decline and managing our distribution contracts to give us maximum flexibility in the future. We continue to develop options to ensure the print cost remains highly variable to volumes as we move forward. In summary, our vision is to be New Zealand's leading news destination and the three strategic pillars are focused on driving the vision to build a scalable digital audience and advertising news platform, focus on expert journalism that grow subscriber lifetime value, and maintain our high-quality and efficient print business. Each of these pillars is focused on the core commercial drivers of the publishing business, a digital advertising business, a digital subscriptions business and a print business. Our new operating model sets us up to be agile and nimble to rapidly adapt as the model evolves in the future. The 3-year scorecard for 2024 through to 2026 is aligned to the delivery of our three strategic pillars. For the digital business, we are targeting growth of subscriptions from 123,000 to 190,000, to increase our digital advertising mix from 48% to 60%, and to grow the digital stand-alone business EBITDA from 8% to 14% to 16%. The EBITDA includes our fully loaded editorial and newsroom costs with only a small amount of print content production and editorial costs allocated to the print business. For the print business, we are targeting to retain more than 65,000 print subscriptions to represent 40% of total publishing advertising revenue and to deliver a solid contribution of 13% to 15% EBITDA from a stand-alone print business. Achieving these targets will deliver a strong publishing business over the next 3 years with a strong future outlook of being a digital only less in the longer term. I'll now hand back to Michael, and we'll be back with you again shortly for any questions you may have.

Thanks, Carolyn, for that really informative and extensive presentation on our publishing business. There's some really big opportunities to expand our offering even further to ensure we are a New Zealand leading news destination, where the audiences choose to engage us through our digital platforms or through one of our print products. Now I'd like to introduce you to Greg Hornblow. Greg started as Chief of OneRoof in February this year. He came to NZME with a wealth of experience in real estate, having held senior positions in a number of New Zealand's largest and top-performing real estate companies. Greg is responsible for our OneRoof business, which is New Zealand's fastest growing multichannel real estate and property platform. The platform includes real estate listings, property valuations and real estate news, a one-stop shop for all things property. It's a real growth opportunity for NZME. Before we hear Greg, please enjoy the short clip on OneRoof. [Presentation]

Thanks, Michael, and [indiscernible] everyone. It's my pleasure to take you all through the OneRoof 3-year strategy. There are three pillars to the OneRoof strategy, best described as being an evolution rather than a revolution. In pillar one, we are committed to giving a superior listings experience and performance. This sees us delivering quality inquiries for our clients that other portals can't through our extensive passive audience. In pillar two, our focus on growing our revenue across all listings by maximizing the number of packages we sell and the yield we receive for those packages. We have great plans to accelerate the already strong gains made. And in pillar three we will look to substantially grow our non-listings portfolio of products and services to further help OneRoof establish itself as your essential property platform. Let me now take you through some background information before we delve into these pillars. In our next slide, we have highlighted four international portals that have developed clear road maps for business growth, embracing the total marketplace model. These will likely be familiar to you all. Firstly, realestate.com.au founded in 1995 and the clear #1 end market in Australia. It's focused for many years was to drive revenue through its core listings for sale. It is now further diversified into other brands, including marketing insights and mortgages. Our strategy accelerated through acquisition. Domain is #2 in Australia and has had great success in introducing a more diverse marketplace model. View is the next challenger, recently the benefactor of increased investment. A tool has a marketplace model, but also focuses on off-market property sales. Last, but not least, is Zillow, the USA's #1 site publicly listed in 2011, again with a wide range of property services. We do look to these portals for inspiration and also note the significant valuation multiples that these organizations achieve. This highlights the opportunity for OneRoof to create significant shareholder value. Our next slide talks to New Zealand's fascination with real estate. It clearly highlights real estate as one of New Zealand's preferred investment assets. The top left chart shows how New Zealand outperforms other leading countries in property investment. Moving to the right chart, which highlights the significant increase in New Zealand household asset values across the last 25 years and how it has outstripped other investment classes. On the bottom of the screen, you can see a number of statistics, which once again highlight New Zealand's interest and involvement with real estate. This fascination and investment in real estate creates an enhanced opportunity for OneRoof. The New Zealand property market is cyclical. This next slide highlights the historic cycles together with the current and forecast metrics for the market. On average, New Zealand goes through a full property cycle every 7 to 10 years. If you look at the trend in the jagged line graph from 2016 until 2019, New Zealand's property cycle was in decline with regards to sales numbers. However, looking at the bars along the bottom the median sale rise continue to be resilient. We then saw a sharp well-documented recovery through the COVID, with both volumes and values surged with the declines returning post-COVID. Most market commentators believe that we are past the bottom of the cycle and that we will see growth in the market from here, both in volume and value. This creates an opportunity for OneRoof audience and revenue growth. So let's look more in depth at the three strategic pillars for OneRoof. Firstly, superior listings experience and performance. As we move into our sixth year, OneRoof continues to evolve and improve with continuous product enhancements at the core of everything we do. The core functionality, including property valuations, personalization and building a unique audience are delivering results. It's been a great journey since OneRoof launched in 2018 with many significant milestones along the way. None more so than in 2023, seen a complete back in rebuild for our OneRoof desktop and mobile websites, resulting in some outstanding SEO improvements. Our drive to get viewers to our listings has seen a massive increase in inquiries over the past 18 months, solidifying us and real estate agents minds as an essential property platform. We have many more enhancements planned that we know will make a difference. We continue to grow our listings penetration across New Zealand versus our two competitors. Having the bulk of the for-sale listings inventory is critical to having a sustainable platform. In some areas, OneRoof is clearly outperforming realestate.co.nz and coming very close to Trade Me when private listings are taken into account. This continues to be a key focus for us. The next slide shows the extensive gains we have made in the last 18 months and closing the gap with New Zealand website audiences and our increasing brand awareness. We are now a clear #2 in the Nielsen Online Ratings, New Zealand web audience measure. Closing the average gap on #1 to 139,000 in 2023. This has been a big focus for us over recent years. Of significance is the reduced reliance on the New Zealand Herald referral audience, down from 30% of sessions in 2020 to 17% in 2023. This means that over time when our audiences are growing, we are closing them on the #1 player, and we have less reliance on the New Zealand Herald to achieve those grow numbers. However, this remains an advantage in delivering some of the passive buyer audience that a OneRoof uses to differentiate itself. The data on the right shows we are also now #2 in market for brand awareness. NZME's radio, print and digital assets continue to play an important role in helping to boost brand awareness for OneRoof. To further support those impressive audience statistics, our next slide shows that the focus on key audience metrics has driven outstanding growth despite the challenging housing market we have been experiencing. Our strategic move to drive more audience to listings is paying off. This year alone, average daily listing users is up 36%, and inquiries at the same period are up 106%. These metrics are vitally important as there is a direct correlation between average daily listing users, inquiries and the ability to deliver future revenue. We will continue to drive hard in this area given its strategic importance. Our ability to reach not only the active real estate market, but more importantly, the passive is the focus of this next slide. In summary, 16% of the relate market has reached only by oneroof.co.nz, and 32% of the OneRoof audience is not visiting a competitor. As you can see on the right, we are expertly positioned to pick up the passive and active buyer and owner markets through our extensive offerings of our digital print and radio platforms. To explain further, active people in the market right now looking to buy or sell, they tend to search everywhere. The passives, a much larger group, didn't go to bed last night thinking about real estate. But something today across a new story, a radio interview, a podcast or reading something in their local cafe has piqued their interest in property and driven them to OneRoof. This is our unique value proposition. OneRoof can turn a passive buyer or owner into an active buyer or seller. We will continue to drive energy into enhancing the OneRoof platform to leverage OneRoof's passive and active audiences. Further increasing listing views and inquiries. With significant progress already made in our desktop and mobile web, 2024 will see a focus on our app to improve our in-market experience. We will further differentiate with personalization and more features. We will continue to improve the offering to make finding a property and inquiring easier. We will also deliver more listing views and inquiries by leveraging our passive audience and attracting more of the active audience to OneRoof. We want to be top of mind for those considering to buy or sell and helping convert them to inquiries by making property search as simple. We are committed to delivering a superior listings experience and performance for the audience and agents. And now on to our second strategic pillar to grow listings revenue. The number of residential listings coming to market over recent years has declined. Despite this reduction in new listings, as shown by the black dash line, OneRoof revenue has gone against that trend. Both digital listings revenue and total OneRoof revenue have seen growth in the last 2 years. This highlights that OneRoof's unique multimedia approach is working. The decline in new properties coming to market has accelerated in 2023. This slide highlights the 16% year-on-year reduction to [indiscernible] 2023 with large reductions in Auckland, which has been OneRoof's initial market of focus. You'll see the bottom line on this graph shows Auckland listings as a percentage of total New Zealand listings. Auckland averages around 35% of those total new listings. This highlights the significant opportunity that we have outside of Auckland. Pleasingly, the decline in new listings has slowed recently. On the left, you can see that August and September 2023, new listings were in line with 2022. On the right, you'll note that the forecast of new listings for 2023 and the actuals for 2022 were well below the highs of the most recent cycle. This highlights the opportunity for growth should we return to prior levels of new listings coming to market. Many market commentators and analysts are reporting that the property market should improve. As you'll see, recent commentary on the market suggests that the downturn is over with record net migration playing a key role in stabilizing the housing market a little sooner than expected. The Auckland market traditionally recovers first, followed by the other major centers and regions, and this is exactly what we are seeing. This bodes well for an increase in properties coming to market and selling. The key way OneRoof monetizes the platform is to upgrade from a free or basic listing to paid or package listing. Our paid listing provides increased visibility and promotion of their listing. Our sales team's ability to convert basic listings into packages as highlighted here, with Auckland hitting 52% of for-sale listings being upgraded in September. As I previously mentioned, Auckland was OneRoof's initial area of focus. As highlighted previously, Auckland supplies approximately 35% of all new listings coming to market, meaning the opportunity presented by the rest of New Zealand is large. This will be a key area of focus in the next 3 years, and we'll expand on this shortly. Along with converting basic listings into packages, another focus in our sales teams has been on increasing yield. Advertising package prices and therefore, yields tend to be higher where houses are more expensive. Given this, Auckland package prices and average yields tend to be much higher than outside of Auckland as shown here. As the most recent entrant to the market and given the competitive nature of the market, it means that we are currently selling the lower end of the packages that we have available to sell. This results in yields across the country achieving 36% to 37% of the highest available packages that we sell. Accordingly, as we further establish ourselves as an essential property platform, the potential to increase ARPU by selling higher-value packages is a significant opportunity for further revenue growth. So let me talk to what we are doing to achieve these lifts and conversions and yields we've highlighted. A large focus will be on the transformation of our national sales force. We are creating a dedicated OneRoof national sales force. This will be based on regional market sizes and ensuring we realize the potential in each market across digital, print and radio. These resources will come from within the wider NZME sales team. Key will be the increased customer service levels, particularly outside of Auckland. We expect to have that in place at the start of 2024. In addition, we are reconfiguring and simplifying our packages across all real estate and agent products. We intend to further strengthen agent relationships and tools. In short, we are activating a much larger, better coordinated sales force, armed with the right tools to enable faster growth of packages, particularly as it relates to the rest of New Zealand. We really want OneRoof to be the preferred partner of the real estate industry. Which leads us to our last of the three strategic pillars: accelerate our non-listing portfolio. This is a drive to becoming more of a marketplace, a strategy, as we showed earlier, that has been deployed with success internationally. It's about partnering with the right suppliers for consumer solutions and services and maximizing the available advertising inventory on OneRoof to grow incremental revenues, mortgages, insurance, advisory services, rentals are just a few areas that we will look to grow. And positioning ourselves as your essential property platform we will partner with key suppliers to provide opportunities for assisting people with all aspects of the property life cycle, not just the buy, sell. We see a focus on the non-listing components of OneRoof as real audience and revenue drivers. So what will success look like? The scorecard includes a number of key metrics that we think show that we are an essential property platform. We want to continue to close that audience gap and at the same time, growing inquiries to our real estate partners by 100%. Listings upgrades or conversions will stay as a key focus and a measure of success, with particular focus, as mentioned on the rest of New Zealand. Revenue share between print and digital will continue to show digital as an increasingly dominant component of revenue. Finally, we will become a meaningful contributor to NZME's profits over the next 3 years. I hope you've enjoyed this outline of OneRoof strategy to become your essential property platform. Let me now hand you back to Michael.

Thanks for the presentation, Greg. As you will have seen, OneRoof is still a relatively young business at just 5 years old, but it has delivered strong growth and key metrics over those years. It's really great to see the future plans to further grow listings revenue, but also expand the non-listing part of the platform, improving user experience to ensure it's the essential property platform for our audiences and our customers. Let me now conclude with how NZME can leverage its strength to deliver significant shareholder value. We believe that NZME is in a prime position to leverage its strength. As you'll note, NZME reaches 84% of the New Zealand population every month. It has impressive market shares in its audio and publishing businesses, and you've just heard the opportunities for growth. And it has a leading print business, which will deliver strong cash flows well into the future. The digital transformation is clearly evident with strong revenue and clearly articulated growth strategies. As you've also just heard, OneRoof is currently breaking records, and it is a high-growth asset that delivers a key opportunity to realize higher multiples as a group business. And finally, NZME has a strong balance sheet, especially when comparing to a number of its challenged local peers. We believe the future is bright for NZME, and we believe NZME can leverage its strength to deliver shareholder value over the coming years. That's the end of our presentation. We'll be back to you to take your questions right after this video. [Presentation]

We are now opening the webcast for questions from shareholders and analysts. [Operator Instructions] I remind you that this webcast, including our question and answers section is being recorded and will be made available online by the end of tomorrow. Our first question is from Arie Dekker.

Yes, I'll just start with some questions on publishing, if I can. I just wanted to just understand Slide 79 and the Google News diagnostics a bit better. So from what that saying, it looks like you're over indexing in financial and monetization and sort of neutral or underindexing sort of product and audience where you've talked about increased investment being required. I mean do these diagnostics suggest there's a risk that investment in cost is going to outpace revenue growth to address that gap? Or I mean how are you thinking about that?

Arie, thanks for the conversation and the question. I think, firstly, we take -- we're really pleased to be so high up in the picking order of publishers globally. We have talked about further investment in the publishing business, but that's actually obviously within the guidelines that we've already given and the capital we're already spending. maybe, Carolyn, you may look a little bit about some of the areas which as you did highlight in your presentation that we're specifically investing to improve in those key areas.

Yes. I think based on what we've discussed throughout the slides today, the main areas that we are already focused on is growing audience and audience engagement. That will open up the funnel for subscriptions. It will also deliver more advertising inventory. And so I think this is one of the key areas that we're already focused on getting the product and technology right as well as the editorial focus on kind of reader needs and making sure the mix of journalism is correct to grow overall engagement.

Okay. And then just in terms of -- I appreciate the additional clarity that you've provided on what's happening with the subscription revenues in that. And you've talked about -- you've been pretty open about a couple of things you need to sort of address. I mean, I guess, the corporate subscription is obviously a big part of the BusinessDesk, and that makes sense. On the NZ Herald, some of the initiatives you're looking at don't work. Are you willing to remove corporate subscriptions for the NZ Herald given just how low those yields are and the risks they have to individual subscriptions?

That's right. I think, Arie, you're picking on a key thing me, which is something we're very focused on is making sure that those corporates don't cannibalize the individual subscriptions that we haven't. And again, Carolyn, maybe you'd like to talk a little bit to what we're doing.

Yes, sure. So on Slide 103, you can see that we're really looking to balance volume and yield and take quite distinctive approaches for Herald Premium versus BusinessDesk. So from a Herald Premium perspective, we're very much focused on growing yield in line with volume for individuals. Whereas with corporate, there's really just a few corporate subscribers with uncapped plans that are really driving the yield down at the moment. And so we plan to manage that much more carefully in the future and really make sure that we're not cannibalizing the individual opportunity. Whereas on the flip side, BusinessDesk, it's very much a corporate-focused product. And we'll continue to focus on lifting yields over time as we see growing engagement with the product from those corporates.

And on the individual subscription that we see there. What are your sort of objectives in terms to return that to sort of growth in terms of the number of subscribers, like what are your targets, sort of, say, in 12 months or 24 months, do you see yourself, because as you outlined, the market is obviously very large, but it is a decent period in which the number of subs has been a reasonably subdued growth given how large market is?

Yes. So what you can see is that we've set the target for digital-only subscriptions at 190,000 for 2026. And a big chunk of that will be driven by the investment in the technology platforms and the right capability. Because one of the key things that will change over the next 3 years as being more dynamic about the offers. Based on propensity to buy. And then we also look at annual price increases, which we started in July this year and have been very successful in lifting yield with minimal impact to churn.

And that's right. And Carolyn, you mentioned the target of 190,000. That is, as you said, the digital-only subscribers. Today, we have 123,000 of those with the other 56,000 being print subscribers who have enable the digital subscription, which brings us up to the 179,000 that you reported. We've got a written question as well, actually, specifically with regards to the yields and the revenue growth that we are seeing in the digital business and how we might grow that moving forward. And so maybe, Carolyn, again, do you just want to talk a little bit about the things we're doing to grow overall digital yields. And at some point, they may well overtake in print in total.

Yes. So overall, I mean, the main thing is that we will grow digital yields through our bundling strategy. So you can see on one of the slides that we will sell you Herald Premium and then we'll look to cross sell you one of our other digital verticals, whether that's BusinessDesk, ZB Plus, Viva premium or the [ listings ]. So that's one key area where we will be trying to grow ARPU of our digital subscribers. The second one is, as I said before, we will be looking to do annual price increases as in line with what we've done with print subscriptions over many years. And then it will just be about balancing the dynamic offers based on propensity to buy, and then certainly stepping up that introductory pricing to kind of our retail pricing, which is $6 a week at the moment.

I could just have one final question. Just getting a bit of reverb there. Just at a high level. Is it possible to remove that reverb? That's better. Yes. So just in terms of the plan, we're -- again, I just appreciate all the detail that you've laid out here, it's really good. If you had those FY '26 measures sort of across the business, is your plan sort of telling you that in FY '26, your overall level of profitability will be still holding broadly flat as it has over the last 3 or 4 years or we're achieving these objectives and lower market conditions see growing profitability under your plan, given obviously next shift is a big part of what you're managing.

Yes. That's good, Arie. This is absolutely a growth plan and a profitability growth plan for the business and for our shareholder return perspective. Arie, as you pointed out, quite a big mix change, and there was some charts that you will have seen the mix change with OneRoof becoming a significant component of the profits overall. And obviously, the digital publishing component of the business becoming much more significant. So that mix does change, but we'd be very disappointed. And even within 3 years, we weren't substantially back into a growth operation. We have real aspirations for delivery.

We now have a question from James Lindsay.

I just wanted [ for breaking as well ] the costing discount of [indiscernible] trading. And just how quickly you could close those gaps?

Yes. Probably a couple of things if I can just start on that, James. And again, thank you for dialing in. You will have seen on that chart there, we actually show the percentage that our ARPUs are for our packages, both in Auckland and outside of Auckland versus our top overall yield packages. So our initial focus actually is to actually move our existing clients through the products to get higher yielding overall. And so that is absolutely where we're focused rather than increasing prices on current. Maybe, Greg, you'd like to talk a little bit about maybe pricing that we see in the market for Trade Me as an example.

Thanks, Michael. Yes. Trade ME is highest package is around [ 2,100, 2,099 ], including GST. So there's a lot of room. There's a lot of area and a lot of room for us to grow. We've done that extremely well in the last 9 months, 12 months, and we see next year as a major focus, as Michael says, moving them through those packages. And moving them up from package A to package B to package C . And as I said, we've had a lot of success. And with Trade Me sitting at the highest package of [ 2,099 ], there's a lot of room for us to grow.

Maybe just one again for you, Mike. Just in regard to the debt levels that you talked about on the financial projections, obviously, maybe works, and Trade Me have reasonably large levels of debt. I was wondering if you just had seen maybe change in behavior with regards to their investment or how they're operating.

Look, obviously, I won't comment on their businesses, but can sort of talk about what we see in the market a little bit. And there is competitive as ever. And so we do see them in the market every day with competitive offers with rebates to customers and obviously trying to grow audiences as well. So we don't take them for granted. We're out using [ New Zealand LP's ] products, our teams to win in the market and we fight in the streets every day.

And maybe just last one for me. Just for the David [indiscernible] success in basket payment, which has been commendable over the last few years, and just about how much harder it's getting now? Or are there still good places for [ gains ]?

David?

Thanks, James. So in terms of the cost containment, we have a continuous process of ensuring that we're as efficient and as effective as we can be. We continue to find opportunities but they are obviously more limited perhaps than they were a few years ago, but the focus is absolutely there, and we're looking to utilize all of the technology available to us to improve the efficiency of the business overall.

I think just to reiterate what you're saying, David, it is around efficiency and productivity, and we actually think that can actually give us a bit of capability in the market as well. So we still have a number of handoffs between systems. People are often the glue between some of those systems and we'd really like to improve that over the next horizon.

Thanks, James. We now have a question from Roger Coleman.

Ladies and gentlemen, I'd like to congratulate you on superb presentation package. It's a pretty you guys can only concentrate this on 5.3 million people. So first off, congratulations on the net debt, fantastic strategy. So that's the first thing. Now Barbara hasn't had a chance to do anything, right? So there's a question for Barbara. So with the net debt-to-EBITDA target of 0.3 at the end of the year, and achievement you go to a lower range of 0.5 on $57 million. That implies a $0.06 special dividend decision by the Board in February. Is that the correct calculation on that?

Look, I'm not going to commit to that, Roger. Thanks for the question. What you've seen us do over the last year is to really focus on the operating environment that we've been in. And I think our best investment has been to stay strong in this operating environment. What we've said is that we're going to look at opportunities in the new year, and we'll be thinking about capital management as we go into that. So I'm not going to make a commitment now, but you've seen us use tools before like special dividends and share buybacks. So those things are all on Board's mind. We're also conscious that there just may be good investment opportunities shaking out of the market going forward. So we're mindful of all of that, and we're going to put it all together in February, and you'll be hearing from us more around that time.

Just to follow up on what you just said a second ago. The investment opportunity in New Zealand for the company, given the position you hold, the dominating position, they wouldn't be major scale or not?

Look, I'm not going to [indiscernible] what might be coming along, Roger. So I'm just going to keep quiet on that. But I mean you can read the papers like we can read the papers. There's definitely things happen in amongst competitors and they like the bits and pieces that come around. So yes, so we're just going to keep an eye open for those kinds of opportunities without assuming that anything does come around.

Right. Okay. My second question to Greg. Just talking of the visitation figures, right? When I compare you against using similar web total time on site, number of page views. We still lag significantly below real estate New Zealand. They don't separate the Trade Me figures, right, so I'm [indiscernible] using that as an example. Just talk out a big gap to make up on total time on site, paid fees, et cetera. So what are you going to do?

So well, Roger, thank you for the question. The focus over the last 12 months, particularly has been driving people to inquiries, and we've had an incredible success at that. So we spent a lot of time and energy, making people go through the -- get people through to the listings and having that inquiry button, and that's where we're having the great success in the marketplace. So we'll continue to drive people to site, but getting them to listings, first and foremost is the key and we've had a great success, as I said on that, and as you can some of the numbers in the presentation. So yes, we're all about closing gaps. But at the end of the day, we need this product to be successful for the agents and driving them to those listings, hitting that inquiry button, which has been a massive success for us over the last 12 months is really the focus again for the next 12 months.

Just closing the gap, great. When I just see a chart, you've got of about 540,000 versus 680,000 for Trade Me and they deduct their rental proportion of their listings and then your [ 7%, 9% ] I made the gap roughly 4 by 4 versus 5 by 4. So you got 100,000 make up. Looking at the advertising spend indicatively of $3.8 million in the first half, you declared in the results split up. Are you going to take the foot off the advertising spend or not?

So I think what you will have seen here is we have continued to invest in the brand and driving people to the site. We're not planning on reducing that spend, but at the same time we're not planning on increasing it either. We want to continue growing that overall audience, and as Greg said, and ensure we're delivering for agents at the end of the day to ensure that they're having success.

Talking about shareholder [indiscernible] I'll recommend is to keep the foot flat on the floor to make up that 100,000 you big gap. And that's what we would like to see the company do all the way back from 2019. So Greg, guy, I hope you get passed that more gap. You've got to close now. Okay. I'll let somebody else talk with some more questions on this time.

Thanks, Roger, for that comment. And as you all know and others on the call will know, the last few years have been spent on making sure that OneRoof isn't a drag on the business. We've really been trying to invest all we can without it impacting overall business profitability. And so we are profitable now from a OneRoof business perspective. But as you will have seen in the charts that we talked about earlier, by 2026, we expect it to be a significant contributor, and we think that's key for us for the future, a real growth engine for the business.

We now have a question from [ Will Tress ].

So obviously, it's been a pretty wake year for residential listings in New Zealand. That's obviously impacted OneRoof, but you still managed to produce growth, which is an awesome result. If you zoom out a little bit though, the kind of long-term trend for listings in New Zealand kind of appears to be downwards. What's your kind of internal view on where that might settle in the medium to long term? And how does that affect what OneRoof trying to do?

Will, as you pointed out, earlier this year, we were seeing listings down 20% year-on-year. And in recent months, we have still seen listings down year-on-year. But as we pointed out, in one of our slides, we've seen really strong growth as much as over 20% in the last month. But to your point of longer out and Greg spent a lot of time in the industry. Greg will tell you it's a 7- to 10-year cycle. But maybe Greg, you'd like to give a little more on that.

Yes. Thanks, Michael, and thank you, Will. Look, we are -- we're past the bottom of the cycle. So we're on the way up. We could all try and be in Nostradamus and pick when listings are going to get back to previous levels. But we're seeing some really good growth in listings, and I'm hearing anecdotally from the marketplace. Particularly about January, February, March next year, very strong signs that listings are going to get back to decent levels. Whether we get back or how fast we get back to previous levels, I couldn't quite tell you, Will. But I'm expecting -- some of the modeling I've seen, I think Tony Alexander, one of the economists, is picking 2025 for a time that listings will get back to where they were at their peak's at. So if we want to listen to Tony, we can go with that. I'm hoping we get there a little bit sooner. But the signs are in the market right now and what we're hearing in the next 6 months is extremely solid.

Awesome. And I guess if we could pivot now to the kind of the audio. This looks to be a pretty significant kind of digital audio opportunity and you've sort of spoken of at length. Do you think that your FY '26 target of 12% digital audio revenue is conservative?

As you point out, there's a huge opportunity, and we look to some of our international peers and suppliers of our technology. So Jason, you might like to give a little more update on that?

Yes. Look, we think the number is pretty strong for 2026, and we do think that the terrestrial radios, the AM/FM market is going to continue to be strong. One of the key elements of our strategy is not cannibalizing AM and FM radio revenues, and ensuring that we bring incremental revenue, that's were podcasting for us. It's actually a really critical part. What we're seeing, and you would have seen in the slides today, as it's incremental listening. It's coming from social media. It's coming from watching video that brings new audiences into audio. It gives us incremental listing time or hours and then brings incremental revenue as well. So again, we want to see a strong radio market in terms of revenue and a growing digital revenue market as well.

And as Jason pointed out, market share of 70% versus our #1 competitor. It's a really strong place for us to continue to grow that share overall.

We'll just switch now to some online questions. The first from Dennis Chua, a great progress on the digital transformation and the publishing business, I appreciate the details on the advertising opportunity that digital affords, for example, better targeting and presumably higher ROI for advertisers. Can you discuss whether in the mid- to long term, we should expect a higher revenue per subscriber for digital compared to print?

Thanks, Dennis, for that question. Hopefully, we answered that earlier, and that was actually the written question that I was referring to when we were speaking with Arie. So if we haven't got that, and you want some more, I'm pleased to yell out, but maybe we'll move on to the next question, if that's okay.

Another one from Dennis. Michael, can you describe what the Board intends to do with the significant cash flows over the coming years, given that net debt is basically zero in the new year. The dividend yield today is sizable at low double digits percent, but what the market might be missing is that if see if yield is in the mid-teens despite being in a really tough year when advertising is challenged and OneRoof isn't contributing to cash flows. With a rebound in advertising and OneRoof growing to contribute what looks like 20% of EBITDA in 2026 based on Slide 32, NZME yield will climb significantly. BusinessDesk and buying back the remaining 20% of OneRoof were both great investments, but the fear is that there may not be other deals out there that are better than NZME itself today.

Yes. Thanks, Dennis. And Barbara will have answered some of that, but maybe I'll pass through again shortly. But you quite rightly point out, a really strong dividend yield at the moment, and even a stronger free cash flow yield because of only a portion of those free cash flow is being paid out as dividends today. You also note, as we continue to grow the business and as OneRoof begins to contribute. We only expect those to increase. So that either results in bigger dividends being available to be paid or as you point out, potentially NZME actually [ best or invest ] it free cash flow and actually the buybacks as we've done in the past. So maybe, Barbara, again, would you like to give any further comments on that?

I think we've probably covered it, Dennis. But look, thanks for your comments around what we have bought with BusinessDesk and buying back OneRoof. It's those kinds of opportunities that the Board is going to keep looking at. It has to be a quality thing for us to deploy our capital into any kind of acquisition like that. Otherwise, if the best answer is to distribute it back to shareholders, then that's what we've done in the past, and that's what we'd be doing again. But we're going to wait, as I said, until February, and we'll come to a view on that then.

Thanks, Dennis. As we now have a question from Nigel Jefferies. Thank you for the detailed presentation. Given the [ NZME ] strategy, including the estimated $30 million capital investment over the same period, can you provide commentary on the earnings growth that you expect to deliver over the period?

Nigel, and we may have covered some of that already. But as you say, we are planning on reinvesting $30 million of the cash flows back into the business just as we have done actually at $10 million a year over recent years. And as we talked about with Arie's question, we do expect our strategy to deliver earnings growth which by default will be cash flow growth and dividends and/or other options from a capital management perspective. So yes, this isn't a strategy around maintaining existing business or a decline. This is a strategy all around the business and growing shareholder value.

Thanks for that question, Nigel. We're just moving on now to one from Louis Joseph. Hello. Thank you for the huge body of work that has gone into this presentation for shareholders. I'd like to ask the Board to consider undertaking a sustained and disciplined buy back with an emphasis on reducing shares outstanding. It appears that the current market valuation barely ascribed any value to OneRoof. This need not be stipulated for any specific quantum of value rather just with an aim of consistently reducing the share count when compelling valuation opportunities arise.

Louis, thanks for the question. I think I probably answered it in relation to where the Board is thinking and I'll just take you to February, and we'll be able to shed more light on things like that. But thanks for the observation.

And Louis will take all advice from me as well as to how we can have the market, realize the value of OneRoof because we do think it's a fabulous asset, but we've created over recent years. And, yes, as we mentioned, we're right on the cusp of really delivering earnings from that business.

Thanks, Louis. We're just -- we're now moving on to some further questions from some of our shareholders, Arie Dekker. Please go ahead.

Yes. Just a couple of follow-ups on OneRoof. I guess the first one is in terms of normal market conditions, what is the FY '26 revenue ambition for OneRoof? Just saying mid-cycle levels of activity? And then also, and obviously, Roger has given you a vote of confidence on just going forward. OneRoof probably we don't need to do this special. But just costs, like where is the cost base going to be on OneRoof in the next couple of years? Is it pretty much full year now? Or are you planning on spending more in terms of OpEx in OneRoof over the next year or 2?

Yes. So Arie, maybe a couple of things I can point you to. Firstly, obviously, the chart that shows the mix of earnings, which shows OneRoof is a substantial contributor in 2026. So that may well be helpful as you do your modeling. Similarly, the percentage increases that we're showing for the sell-through of OneRoof into Auckland and outside of Auckland. And obviously, you'll be able to make some assumptions around a number of properties. And then overall, we've given some guidance again on EBITDA margins there. We think the business is actually fully costed. The only thing we would expect to maybe see some increases as we sell some of the very high packages, they do come with an external cost of content or marketing involved in them onto third-party platforms. And those come as you move up from the lower package values that we have today to some of those higher packages. But again, that still allows us with margin expansion and allows us to get much deeper into the overall. Greg, I'm not sure if there's anything else you want to add?

You've answered it perfectly Michael.

Sorry, Arie, one other thing I might just point out on that, what Greg did mention in his presentation is we are looking to have a national OneRoof sales team just so that we get a laser focus on it from a sales perspective right across the business. So a number of real estate or OneRoof roles are part time of people outside Auckland currently. And so that's an area we're looking to put more focus and make sure that while it won't be increased investment, we'll have increased people's attention and dedication, specifically the OneRoof, we see that we can grow it quicker.

Thanks, Arie. We'll now move to another question from Roger Coleman. Thanks, Roger.

Barbara. I just note the issue, you discuss buybacks versus dividends, right? Obviously, you introduce and preferred buybacks versus shareholders who want to have dividends, shareholders are sticky. We've had major problems with institutions holding 15% to 20% of capital moving in and out of the register. It's a small register. It introduces volatility, which is unattractive for all investors. By having any sort of encouragement to the institutional point of view. I also note that a few companies in Australia over many decades, have got a substantial amount of shareholder benefits. You've got subscriptions, you can put into the shareholder older scheme and any way to increase private shareholder group in New Zealand, for stickiness compared with the major movements and damaging movements you've had in and out of the register should be the #1 concentration therefore, recommending don't do any more buybacks. Don't make the capitalization of the company even smaller. There is major EBITDA multiple damage that comes from going to smaller and smaller capitalization. They have double finding analysts to follow the company as it gets smaller, relatively speaking, by gearing up for the institutional buyback package, just stick the something which is dividend wise. So that's my recommendation, you, Barbara, and I certainly think the company should consider a shareholder benefit scheme with whatever assets you've got, you can give away. Although I want you to be in Australia...

We're definitely aware of the different preferences from different types of investors. I expect my next question will be from one of the institutionals suggesting me opposite to what you've just said. But rest assured, we are cognizant of those differences in and around our register. I'll leave Michael to think about opportunities for packages for some of our shareholders. But thanks for the comments, and, yes, we're very alive to that, Roger. So thank you.

[indiscernible]

Sorry, I didn't know you want an answer on that now. So well, Roger, we'd love you to be a premium digital subscribers. So maybe we could talk to you about that. It's something we absolutely can be providing you in Australia. But I take your point on something we can do wider across all of our shareholder base.

Thanks, Roger. We have another question from [indiscernible]

Sorry, guys. I didn't realize I had put my hand up. I do have a question. Can you talk a little bit about, I guess, a bit of an elaboration on the OneRoof pricing strategy. So you've kind of got the difference between Auckland and then the ex-Auckland, I guess, New Zealand pricing. Packages priced for individual markets. Is the different pricing for Wellington or Christchurch sort of need or is it simply Auckland and then ex-Auckland?

Greg, maybe I can...

Thank you, Will. Yes, the packages have said around the pricing. The average pricing in the market. So obviously, as you move out of Auckland, some of the average house prices fall so the packages likewise fall. So you would expect the yield outside of Auckland to be less than Auckland. But nonetheless, as we stated earlier, we want to move people through the packages. And we're starting on that journey, as I said in the last 12 months, we've made a lot of ground. But the real focus with that team that Michael talked about, we get that extra team on the outside of Auckland, focusing on those packages, growing them through the packages, we can get those yields up.

One of the things we are seeing from our competitors that they are bringing more regions outside of Auckland into those top pricing tiers, whereas we currently just have all put [indiscernible] top pricing tier. So again, something to be reviewed in the future.

Thanks, Will. We'll just move to online question from Dennis Chua. I had another question OneRoof, compared to Trade Me, how much of a competitive advantage is the ability to share data across OneRoof, New Zealand Herald, and digital audio and do advertisers or real estate agents care and/or are there ways to enhance the experience for customers themselves.

Thanks, Dennis. So that is a key differentiator for us, whether it be the type of audience we bring or obviously the advertising we do or actually, we'll replace the listings. So for example, a listing that is on OneRoof, [ Canopy ] also on the New Zealand Herald website. But Greg, is there more you'd like to share on that?

I think, yes. As we spoke about in the presentation, Dennis, we're -- there's two markets here. There's the active market. There's the people that are in the market when they're active, they're looking at everything. It's that passive market that that's what we're after. It's generally twice the size of the active market. And the NZME product of services look really, really helps us there. So again, it's about driving inquiry. It's about being effective. It's about working as far as the real estate industry is concerned. And don't underestimate the part that print also plays on this. Print is a massive, massive tool. It's often one of those things that people pick up. You didn't think on Saturday morning, you're about to go and look at real estate, but you sit down and you have your weeks or what do you have on Saturday morning, you have a look through the paper and, look, I'm going to that open home. So don't underestimate the part that print plays, but we also do a lot of that across the digital platforms as well.

Thanks for that question, Dennis. Now we have a question from James Lindsay.

Just seeing today's [ relation ]. Just wondering with regards to -- if you're [ catching your ] share of that, and I know you've talked about more addition as well, but if there's anything more that could be done?

Sorry, James, just to be a bit of a pain there. We didn't quite pick up the question. Could we get you to have another go? Is that okay?

Yes, there's quite a bit of feedback, it sounds like. Just with regard to net migration, you had a written new record today. And just to talk about are you getting your share of that 180-odd that has come into the country. And I know you've talked about having an international paper. But is that -- is there a segmentation that could help and develop that?

Yes. I'll pass over to Carolyn shortly. But one of the things which, unfortunately, you all have seen in our scorecards for the last 3 years, we didn't quite hit, was there was more houses built than we expected to be. So our penetration -- household penetration of subscriptions, I didn't quite get where we wanted to be. Part of that, obviously, with immigration and a few more houses being built. But maybe, Carolyn, do you want to talk about how we are looking to capture those.

Yes, absolutely. So if you look at Slide 102, you can see that we've added the New Zealand expat audience to the total addressable market. So there's over 1 million Kiwis living overseas. And so a big part of our next 3-year strategy is targeting those international readers with subscriptions. We haven't had the ability to do that in a really granular way with our current platform, but it's definitely a big part of growing subscriptions in the future once we've got the new technology in place.

It's looks like we've no further questions.

Okay. Well, thank you so much for joining us today, and I hope you found the session informative. We're certainly delighted to being able to present NZME to you, and we thank you for being shareholders, investors and those who are interested in the business. A copy of this video will be up online in the next 24 or 48 hours, but we look forward to staying in touch with you over the coming days and weeks. Thanks, everyone. Enjoy the rest of your day.