NZME - THESIS, page-16

Agreed@ShaneW88.

I was impressed with the results yesterday and took the opportunity to buy in just after the market opened. In hindsight, i should have bought on Wednesday, but the results provided validation that the strategy is on track, so i preferred to wait for that.

There were a number of things to like:
* strong growth in revenues of One Roof. If they keep the trajectory up, that business alone will be worth $200 million within a few years
* good growth in digital subscriptions to the news business and clear progress towards the transition from the legacy print newspapers
* growth audio / radio, which is potentially an under0rated business unit
* It looks like there might be a decision from the NZ Commerce Commission re: Facebook / Google payments for publishing content, in March. That could deliver material upside

Also, a couple of not so good things:
* Despite the good OneRoof progress, the gap to the market leader appears to be widening (pg23 of presentation)
* Significant cost increases in publishing business (particularly print, distribution, marketing) essentially wiped out top line revenue growth, resulting in a reduced margin
* Being picky, but i thought there was some mild chart crimes in the presentation, to accentuate trends