Table of Contents
What changed
- Revenue from continuing operations fell 2.1% to $750.7m.
- Statutory EBITDA fell 21.2% to $120.6m, against a company-disclosed "underlying" EBITDA of $148.5m (down 3%) — a $27.9m gap that the release attributes to one-off items described as "largely non-cash or expected to be cash neutral".
- PBT fell 57.9% to $28.9m and NPAT fell 58.7% to $20.2m; the effective tax rate was broadly stable at 28.8% (FY24: 28.4%), so NPAT is the cleaner read and is not tax-distorted.
- Operating cash flow fell 13.6% to $120.2m, but lower capex ($78.4m vs $82.9m) lifted reported free cash flow to $24.8m from $23.7m.
- Final dividend lifted 12.5% to 13.5 cents per share. The release also flags a 15.8% increase in the fully imputed full-year FY25 dividend, so the final component alone does not capture the full-period lift.
- The group remained in a net cash position, but cash eased to $32.4m from $37.8m and equity fell 2.2% to $439.0m.
What matters
- The statutory-to-underlying gap is the central tension. Management is asking readers to focus on $148.5m "underlying" EBITDA while reporting $120.6m on a statutory basis, and the extracted materials contain no quantified reconciliation bridge. Until those one-offs are itemised, the durable earnings base sits somewhere between -3% and -21% year on year.
- Dividend policy has decoupled from statutory earnings. Payout against NPAT has jumped to 91.9% from 34.8%, even as ROE halved to 4.6% from 10.9%. Against free cash flow the payout is a more manageable ~75%, but this only works if the "underlying" framing proves correct.
- The result was delivered against a February 2025 downgrade. The release refers to landing within "revised Market Guidance ranges", confirming that original FY25 expectations were cut mid-year rather than met.
Expectations
No FY26 quantitative guidance or forward-work backlog was disclosed. The HY25 shape context shows the first half contributed 51.2% of full-year revenue but only 35.8% of EBITDA and a small net loss, confirming a second-half-weighted earnings profile driven by the disclosed skew of programming costs into H1. Against this, the implied H2 EBITDA of ~$77.4m did the heavy lifting. The release does not support any view on FY26 beyond that the FY25 outcome was achieved only after guidance was reset lower in February.
Quality of result
Cash conversion on the face of it improved — OCF/EBITDA rose to 99.6% from 90.9% — but this is flattered by the EBITDA denominator falling faster than cash flow. Two working-capital items warrant caution: programme rights inventory fell 43.5% ($54.7m reduction), a destock that releases cash in-period but is unlikely to repeat at that magnitude, and receivable days edged up one day to 18.3. Capex of $78.4m (10.4% of revenue) was $4.5m lower than prior year and was the mechanical reason reported FCF rose despite weaker OCF. Stripping those supports, underlying cash generation looks softer than the $24.8m FCF headline implies, and the dividend lift is being funded partly by balance-sheet efficiency rather than earnings growth.
Unresolved
- What are the individual one-off items bridging statutory EBITDA of $120.6m to the disclosed $148.5m "underlying" figure, and how much is genuinely non-cash versus "expected to be cash neutral"?
- Does the 43.5% reduction in programme rights inventory reverse in FY26, and if so what is the OCF drag?
- Is a ~92% NPAT payout ratio sustainable on the current statutory earnings base, and what reset would be required if "underlying" earnings do not recover?
- What triggered the February 2025 guidance revision, and has that pressure abated?
This briefing cannot assess segment-level revenue mix, the specific composition of the one-off items, or any FY26 outlook, because none of these were disclosed in the extracted materials.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $750.7m | $766.7m | -2.1% ↓ |
| EBITDA | $120.6m | $153m | -21.2% ↓ |
| Net profit after tax | $20.2m | $49.0m | -58.7% ↓ |
| Net cash inflow from operating activities | $120.2m | $139.1m | -13.6% ↓ |
| Final dividend per share | 13.5c | 12.0c | +12.5% ↑ |
| Profit before tax | $28.9m | $68.7m | -57.9% ↓ |
| Cash and cash equivalents | $32.4m | $37.8m | -14.3% ↓ |
| Total assets | $672.9m | $681.4m | -1.2% ↓ |
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| PBT growth | -57.9% | — | — |
| Effective tax rate | 28.8% | 28.4% | — |
| OCF / EBITDA (cash conversion) | 99.6% | 90.9% | stable |
| FCF pre-lease | $24.8m | $23.7m | +$1.1m |
| FCF / NPAT | 122.6% | 48.4% | complementary conversion metric |
| Capex % revenue | 10.4% | 10.8% | — |
| Capex | $78.4m | $82.9m | −$4.5m |
| Free cash flow | $24.8b | $23.7m | +$24.8b |
| Debtor days | 18.3 | 17.3 | +1.0 days |
| Inventory days | 34.5 | 59.8 | -25.3 days |
| Trade debtors | $37.7m | $36.4m | +$1.3m |
| Net debt | −$32.4m | −$37.8m | +$5.4m |
| Net debt / EBITDA | -0.27x | -0.25x | Weakening |
| Gross borrowings | $0.0m | $0.0m | +$0.0m |
| Payout ratio vs NPAT | 91.9% | — | — |
| Payout ratio vs FCF pre-lease | 75.0% | — | covered |
| ROE (annualised) | 4.6% | 10.9% | Weakening |
| HY25 share of FY25 revenue | 51.2% | — | Other half was 48.8% |
| HY25 share of FY25 EBITDA | 35.8% | — | Other half was 64.2% |
| HY25 share of FY25 NPAT | -9.7% | — | Other half was 109.7% |
| Profit from continuing operations | $20.2m | $49.0m | −$28.7m |
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.