NZME - THESIS, page-11

Thanks - good article, and i agree with the key arguments, although maybe a little less bullish on the transition to digital.

I think it is dangerous to use NY Times metrics and uptake an example, as the conversion to digital gave that business an expanded worldwide audience (which would have significantly offset the loss of local users) , whereas NZ Herald potential is realistically constrained to NZ only. Nevertheless i do agree, that they can retain / improve the value of the business if they continue to manage the transition effectively.

I agree with @Baltasar, the audio business appears to have solid valuation, good potential, and is generally overlooked.

@ShaneW88 re: OneRoof, agree there is competition in NZ. By my count there are four players, with TradeMe currently #1.
However the article says "Unlike Australia, NZ has no truly dominant online players in property listings". In AU, REA is dominant everywhere, with DGH #2 (across all major markets). Both make good money and trade on EBITDA multiples of >25.

In NZ there is not the same established dominance of two players, and the market is less mature. So i think the flavour of the article is that OneRoof is in a prime position to soon become #1 or #2 in a consolidated 2 player market. OneRoof has grown from nothing to become the leader in the major market of Auckland within 3 years. I believe it is also now #2 across the rest of the country.