Category: Business

Source: Radio New Zealand

Sky TV has made a strong first-half profit and is on track to pay shareholders a full year dividend of at least 30 cents a share.

While it expects trading conditions to remain challenging, Sky TV chief executive Sophie Moloney said earnings growth would continue into the next financial year.

“The first half of FY26 marks an important step forward for Sky,” she said.

• Net profit $52.4m* vs $1.7m loss
• Revenue $415.4m vs $385m
• Underlying profit $78.2m* vs $60.7m
• Operating expenses $346.8m vs 347.9m
• Interim dividend 15 cents per share vs 8.5 cps

*includes purchase of Sky Free

Moloney said Sky’s half-year performance reflected the execution of Sky’s multi-year strategy] and the financial and strategic benefits of the Sky Free purchase of Three owner Discovery NZ for $1.

“The Discovery NZ acquisition was a well-structured deal for Sky,” she said.

“It’s not often you get to acquire an asset for $1 and significantly strengthen the balance sheet at the same time – as is also evidenced by the gain on bargain purchase of $34.4 million we report today, reflecting the fair value of the assets acquired.”

Moloney said the combined business was already demonstrating benefits for Sky.

The company expected to report a full year underlying profit in a range of $145m and $160m, with revenue in a range of $820m and $835m and a dividend of at least 30 cps.

“Although the economic environment remains uncertain, earnings growth is expected to continue from FY27, and we remain confident in our ability to deliver at least $10m of incremental EBITDA (underlying profit) by FY28 through delivery of synergies across the group.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Explainer – New Zealand has cracked down on two hugely popular online prediction markets, declaring them illegal here.

The Polymarket and Kalshi platforms are valued at billions of dollars, but the Department of Internal Affairs (DIA) has now ordered them to stop providing services to Kiwis.

“To avoid breaching New Zealand law, they must cease offering services to New Zealanders,” Vicki Scott, director of gambling for the DIA, told RNZ.

Here’s what you need to know about the world of prediction markets and how it’s changing in New Zealand.

What exactly are prediction markets, anyway?

Basically, it’s where people place bets on the future – that could be sports, politics, weather – even whether or not Jesus Christ might return before 2027.

Polymarket is the big dog in the arena, but there are many other sites, and they’re particularly popular among younger people. Billions of dollars in trading volume was seen during the recent American Super Bowl – not just the game, but things like what musician Bad Bunny would do during his halftime show.

“Any number of things have now been gamified and monetised and turned into basically a casino,” Bobby Allyn, a technology correspondent for America’s National Public Radio, told RNZ’s Afternoons recently.

“Prediction markets are apps where you can wager money on sports, on the outcome of say, a press conference – what will someone say at a press conference … even things like how many people will die of famine in Gaza this year, what will President Trump do in Venezuela now that Maduro has been toppled.”

Some of the big bets doing the rounds this week include whether the former Prince Andrew will be sentenced to prison and when or if the United States might launch a military strike against Iran. But it can even get as granular as what exact words a politician might say in a speech, in “mention markets”.

There are New Zealand predictions in the mix, such as one on Kalshi over who will win November’s election, or wagers on Polymarket on what the Reserve Bank will decide in future Official Cash Rate announcements.

Kalshi co-founder and chief executive Tarek Monsour has said: “The long-term vision is to financialise everything and create a tradable asset out of any difference in opinion.”

New Zealanders have used the platforms and there are many variations of them, not all of which wager money. An Auckland engineer recently told The Spinoff that the appeal of betting on outcomes “makes me feel more engaged and connected to events, because I want to see how things go”.

So is it just a forecasting tool or is it officially gambling?

What has the government decided?

The DIA has weighed in to say these platforms are indeed a kind of gambling under New Zealand laws.

“Prediction markets such as Polymarket and Kalshi are caught by both the Gambling Act 2003 and the Racing Industry Act 2020,” Scott said.

“They both offer products that meet the general definition of ‘gambling’ and the more specific definition of ‘bookmaking’ in the Gambling Act. They are accordingly prohibited under the Gambling Act.”

Scott said that “the surge in popularity and growth of prediction markets means time is right to take a clear regulatory stance”.

The government has sent letters to the companies asking them to prevent access in New Zealand.

Other countries like Australia and the UK have taken similar positions.

One of the big legal debates going on world-wide is whether these sites actually are gambling sites. Multiple lawsuits are playing out in America. The Trump administration has so far tended to back the prediction markets.

And then there are competitors such as Manifold, which uses its own “play” currency Mana instead of betting money.

“Those involved say they’re not gambling,” NPR’s Allyn said.

“They say these apps are placing a bet on a future outcome. But, I mean, look, if I were to explain to you in detail how this works and then you compare this to a casino I think you’d basically say there’s virtually no difference. I think it’s very fair to say that this is just a new tech-powered version of gambling.

“It’s a classic sort of tech company move to say ‘we’re not the thing that you think we are because we want to avoid the regulations.'”

Prediction websites aren’t entirely new, of course. In New Zealand, the iPredict site produced by Victoria University of Wellington ran from 2008 to 2015.

It closed not because it was decreed a gambling site, but instead after former Associate Justice Minister Simon Bridges refused to grant it an exemption from the Anti-Money Laundering and Countering Financing of Terrorism Act, declaring that it was a “legitimate money laundering risk”.

New Zealand Initiative chief economist Eric Crampton said that back then, iPredict wasn’t being held to the standards prediction markets are now by the DIA.

“Deciding that prediction markets are necessarily gambling, however, is inconsistent with New Zealand’s prior authorisation of iPredict. It also shuts Kiwis out of an emerging financial market sector.

“iPredict, like other prediction markets, provided remarkably accurate predictions on future events like election outcomes, inflation outcomes, and interest rate decisions. It ended in 2015 not because it was considered gambling, but because it was too small to be able to afford to comply with new regulations that were mainly aimed at banks.”

Scott said the Financial Markets Authority and Problem Gaming Foundation were consulted and supportive of the DIA’s stance.

“I note that neither Kalshi nor Polymarket applied to the FMA for consideration or licensing of their products,” she said.

Crampton said electronic trading companies such as Tradeweb are increasingly working with prediction markets like Kalshi, and Allyn also noted that “they also are partnering with pretty huge institutions on Wall Street”.

“I expect that new hybrid financial instruments will soon be developed combining prediction market contracts and traditional financial market contracts,” Crampton said. “Regulating this space as gambling makes little sense.”

So are they really predicting the future?

Betting odds for Polymarket and Kalshi have seeped into the real world. Allyn said such reporting can influence actual events.

“Right now we’re seeing a number of awards shows, a number of news organisations like CNN using the odds of prediction markets as part of their broadcast.

“These Polymarket odds are just mostly young men speculating on Discord and Reddit about what they think is going to happen – I mean, it’s pure speculation. When odds move up or down in some way it’s just a bunch of young people in basements slamming on their phones $10 here, $10 there, I don’t really see how this is providing something that’s more authoritative and more credible than polls.”

But as a counterpoint, Crampton called such descriptions clueless.

“Prediction markets prove remarkably accurate, providing regular updated data in areas where official forecasts are few and far between. The (US) Federal Reserve recently published a working paper based on Kalshi data, showing both the accuracy of Kalshi’s prices and their importance as leading financial market indicators.”

Researchers have found that speculators make markets more accurate, he said.

“Informed traders then have a stronger incentive to work hard at figuring out accurate prices, because they have people to trade with.”

Crampton cited an example in the 2024 US presidential election where a trader won big betting on Trump winning, by looking at polls that asked people who they thought their neighbours would vote for.

“From that he learned that Trump was (sadly) far more popular than the polls expected. He bought a lot of contracts that would pay out if Trump won, moving the prices to reflect that reality. And he was rewarded for his efforts.”

Does this only cover Polymarket and Kalshi?

The two companies have been specifically called out, but the decision sets a precedent for others in the prediction market space in New Zealand.

“The issues are not specific to Polymarket and Kalshi, although they are the biggest players in this space currently,” Scott said. “We will take a similar approach to other providers as they arise.”

“The approach we have taken aligns with our approach to overseas betting operators (including many well-known international brands) who have been advised they must withdraw immediately from the NZ market.

“Most have complied, geo-blocking their sites. In our view there’s no reason why prediction markets should be treated any differently.”

What did the platforms say?

The DIA sent letters to both Kalshi and Polymarket, informing them their services were illegal and they must prevent them from being accessed by people in New Zealand.

“Whilst neither have formally responded, Kalshi responded almost immediately by deactivating customer accounts and preventing new accounts,” Scott said this week.

“Polymarket do not appear to have taken any action, and we will be following up with them directly.”

Is online gambling legal at all in New Zealand?

At the moment, only TAB New Zealand can legally offer online race and sports betting.

Currently it’s legal to try your luck on offshore casino gambling sites, according to the DIA, but online casinos based in New Zealand are illegal and it’s illegal to advertise offshore casino gambling websites in New Zealand. Safer Gambling Aotearoa warns to use those sites “at your own risk”.

The Online Casino Gambling Bill, which would regulate and license up to 15 offshore casino operators, is currently progressing through Parliament.

The bill “will introduce a regulatory system for online gambling in New Zealand, which will prioritise harm minimisation, consumer protection, and tax collection,” Minister of Internal Affairs Brooke Van Velden said in introducing the legislation last year.

What happens if I find a way to still use Polymarket or similar sites?

Scott warns that it’s risky.

“New Zealanders who engage with Polymarket should do so with caution. There will be no recourse through the gambling regulator if things go wrong and there appears to be no harm minimisation protections in place.”

However, Crampton said that he felt the sites were legitimate enterprises.

“Kalshi at least is (United States Commodity Futures Trading Commission)-authorised and CFTC-regulated. And I have never heard of payout issues at Polymarket.

“There are the occasional problems that every prediction market has in contract interpretation; iPredict had those too. Even if everyone is diligent and well-intentioned, sometimes the world moves in ways that make it hard to interpret whether a contract should pay out at $1 or at $0. It’s rare, but occasionally unavoidable.”

While Polymarket and Kalshi are now considered illegal in New Zealand, Scott said the DIA will not be going after individual users.

“Although it is technically an offence to participate in illegal gambling, we will not be looking to penalise those engaging with these platforms, our focus is on the platforms themselves.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Air New Zealand has slumped to a half-year loss as it continues to face severe disruption due to grounded aircraft, with challenges likely to continue in the short-term.

The airline posted a bottom-line loss of $40m in the six months ended December, compared to last year’s profit of $106m.

Revenue was up just over 1 percent to $3.44b, compared to $3.4b a year ago.

Key numbers for the six months ended December 2025 compared with a year ago:

• Net loss $40m vs $106m
• Revenue $3.44b vs $3.4b
• Pre-tax loss $59m vs $155m profit
• No interim dividend vs 1.25 cents per share

The airline said the result was largely driven by global engine maintenance delays, slower-than-expected recovery in domestic demand, increasing costs, and a weaker New Zealand dollar.

The pre-tax loss came in worse than market expectations and the airline’s own forecast of between $30m and $55m.

Air NZ was also undergoing a major review of the business as it looked to cut costs and return to profitability.

“With the support of the board we are undertaking a comprehensive review of all aspects of the business, with the objective of returning the airline to sustained profitability through enhanced operational performance, growth and further cost transformation initiatives,” chief executive Nikhil Ravishankar said.

“While we are disappointed that the engine availability issues have taken longer than anticipated to resolve, we are pleased with recent progress and now expect a total of four grounded Airbus neo and Boeing 787 aircraft to return to service throughout the 2026 calendar year.”

Ravishankar expected Air NZ to receive two of its 10 new 787 aircraft later in the financial year, providing widebody capacity growth of 20-25 percent over the next two years.

Domestic demand soft, costs high

Air NZ said overall passenger revenue improved 4 percent to $3 billion on the back of more capacity to Australia and the Pacific Islands, and more premium seats on long-haul routes.

But it said domestic demand recovery was slower-than-expected, while international performance was supported by strong offshore bookings, particularly for premium cabins.

It said demand for outbound long-haul travel was subdued.

Jet fuel prices were on average slightly weaker than the prior period, but the airline said lower fuel prices were more than offset by a weaker New Zealand dollar.

“Non-fuel operating cost inflation of approximately $75 million was driven primarily by higher mandated domestic passenger levies, engineering and maintenance costs, and airport landing charges,” the airline said.

“The airline’s concern is not only about the current level of these costs, but the future trajectory and potential for further increases over time, which would place additional pressure on the business, and the sustainability of regional connectivity.”

Conditions not expected to improve in second half

Air NZ said while capacity would likely increase modestly in the second half with aircraft returning to service and new aircraft, the airline was cautious on whether it would translate to earnings uplift.

“This is because widebody capacity cannot be operationalised into the schedule and sold at short notice,” it said.

“The primary constraint is uncertainty in the timing of aircraft and engine returns, which limits the ability to plan and sell additional flying with confidence.”

The airline said disruption-related costs and inefficiencies would also take time to unwind.

Based on current trading conditions, and assuming a jet fuel price of US$85 per barrel, Air NZ expected second-half earnings to be broadly in line with, or modestly below the first half.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

A man who took out a loan for a car but was unable to make the repayments when he lost his job has had the default interest and fees charged refunded.

The case may offer insights for other borrowers struggling with their loan commitments.

The man complained to Financial Services Complaints Ltd (FSCL), an external dispute resolution provider for some of the financial sector.

It does not identify people who complain or the organisations they complain about.

But it said in a case note that the man borrowed $9995 to buy a car in 2022.

He had to arrange insurance to qualify for the loan so he borrowed a total of $14,000 to cover mechanical breakdown insurance, payment protection insurance and guaranteed asset protection insurance, all through the car dealership.

In 2024, he lost his job and found it hard to keep up with the $107 a week loan payment. He contacted his insurer but was told his cover did not include any provision for redundancy. The car dealer was no longer in business.

He said he told the lender about his problems but default fees and interest were added every time he missed a payment.

The lender offered to his increase his weekly payment to $150 to get him back on track but he continued to fall behind.

He finally complained to FSCL, saying the lender had not done enough to help and it was unfair that he was being charged fees and default interest when he was in hardship.

FSCL investigated and said because he had not missed any loan payments before he lost his job it was likely that the loan was affordable when he borrowed the money.

Lenders have an obligation to ensure they do not give borrowers loans they cannot pay back.

“We considered that the lender had not done anything ‘wrong’. The lender had given [him] information about financial mentoring services and had restructured the loan once to avoid default interest and fees. Reviewing the lender’s diary notes, it appeared that [the borrower] was offering to increase his payment to get the loan back on track and avoid repossession of his car.”

The lender agreed to refund the default interest and fees, refinance one payment into the loan balance so he was not in arrears and reduce payments to $110 a week.

FSCL said lenders were required to consider whether they could do anything to alleviate financial hardship but they were entitled to charge default fees and interest.

“If you experience financial hardship and struggle to repay a loan, keep in contact with your lender, show a willingness to repay what you can, and seek help from a free financial mentor early.”

Commerce Commission general manager of competition, fair trading and credit Vanessa Horne said people who were facing financial difficulty and could not afford their repayments had two options.

“The first is to contact the lender as soon as possible to see if they can make changes to the credit contract.

“While lenders do not have to alter the contract, they are required to act reasonably and ethically when problems arise.

“The other option is making a hardship application, which [the] lender must consider by following a specific process.”

Horne said under the Credit Contracts and Consumer Finance Act, a borrower could ask a lender for a change to their loan, mortgage or credit card or other consumer credit contract if they had suffered a hardship they could not have seen coming, and could not make their repayments as a result of that hardship. They also needed to believe they could make the repayments if the contract was changed in the ways specified under the Act, including extending the loan term or a payment holiday.

“A borrower must make a hardship application in writing. They need to state the reason, or reasons, for the unforeseen hardship. It can also be worthwhile including supporting information, such as a medical certificate or letter of redundancy.

“The letter must also include the specific changes the borrower wants to make such as extending the term of the contract and reducing the amount of the repayments or postponing repayments for a specified time and both the borrower and lender must agree to the changes before they are permitted.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Whangārei woman Kate recently became a solo homeowner, after her relationship ended.

While being able to keep her family home has given her some stability, it’s come at a financial cost.

“I honestly don’t know how I would do it without a decent job,” she said. “If I had career breaks I would have had to sell up.

“Now I have to work harder … I think it would be hard for lots of females.”

She said she had been lucky that she made extra repayments on the mortgage earlier on, which means she can structure her loan in a way that makes it more manageable now.

“Just means less clothes for me. And being more conscious. But lucky I am financially literate.”

Data shows that as a millennial, she’s in a minority.

Women – and particularly younger women – are being left behind in the property market, a situation that could exacerbate wealth gaps over time.

Cotality has released its latest Women and Property report that shows, while both men and women value home ownership, there is a gender gap when it comes to ownership rates.

More than half of Gen Z males (those born from 1997-2012) and 66 percent of Millennial males (those born from 1981-1996) own the home they live in.

But only 33 percent of Gen Z females and 37 percent of Millennial females can say the same.

There is also a disparity among investors. Twenty percent of Gen Z men own investment properties and 15 percent of Millennial men, compared to 13 percent and 9 percent for women, respectively.

That is despite 62 percent of women saying property ownership was very important, compared to 54 percent of men.

Cotality chief property economist Kelvin Davidson said respondents pointed out various reasons for the different outcomes. “Certainly, look at incomes. We know there’s a wage gap in New Zealand. When you look at the proportion of women earning over $100,000… it’s quite a bit lower than males.”

A quarter of men told the survey they earned at least $100,000 a year, compared to 12 percent of women.

That would affect women’s ability to save deposits as well as pay mortgages, Davidson said.

Her said there also seemed to be a gap in the understanding of the home buying process. “In some cases that actually put females off even bothering.”

In total, 16 percent of New Zealand women said they had not bought a property yet because they did not know where to start. Only 6 percent of males said the same.

“There’s some potential policy implications here in terms of trying to fix the wage gap, and also looking at education initiatives perhaps pushing accounting or economics or finance in terms of education pathways,” Davidson said. “Earlier ownership is going to be associated with more stability, more security and greater options later in life.”

He said the figures showed systemic barriers rather than a lack of aspiration from women.

“Women clearly want to own property – in fact, more women than men rate property ownership as highly important.

“The challenge isn’t motivation, it’s knowledge, equity and support.

“The system often assumes a level of confidence, capital and experience that many women simply haven’t had equal opportunity to build.”

He said the most common method of ownership overall was co-ownership.

“Property is still a priority but it comes down to other factors, monetary and non-monetary.”

Cotality chief commercial officer Lisa Jennings said early entry to the property market gave people more time for their wealth to accumulate.

“And a gateway to more options later, as well as the tenure benefits from owning a property. This is a concern for younger females, who don’t own property as frequently as males.

“Building a deep understanding and specific gender knowledge of tomorrow’s property buyer is critical in addressing these disparities between males and females. It’s about strengthening communities and the resilience of New Zealand’s property market.”

Nearly two thirds of respondents to the survey said they had made changes to improve the energy efficiency or sustainability of their homes.

Of those who have made changes, just over half have made minor or low-cost updates such as LED lighting or draught-proofing, while just under half had made significant upgrades like solar panels/batteries, double glazing, or insulation.

Women were more likely to prioritise stability, security and long term liveability in property decisions.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Consumer NZ is asking how it is fair that power prices are rising at the same time as power companies are reporting large profits.

Meridian Energy on Wednesday reported a $226 million half-year profit. Earlier, Mercury had recorded a net profit of $20m in the year six months to December, and Genesis said its half year profit was $95m.

But at the same time, many customers have been receiving emails in recent weeks telling them that the cost of their power is set to rise this year.

After an increase of 12 percent last year, Consumer NZ has estimated that it is likely power prices will rise about 5 percent this year, largely driven by increases in lines charges.

A Consumer survey found that almost half of respondents said the price of their latest power bill was not fair and 46 percent of New Zealanders through gentailers’ profit levels were not justified.

An earlier survey found that almost one in five people cut back on food or other essentials to pay their power bills last winter and 21 percent went to bed earlier to keep warm.

Chief executive Jon Duffy said it appeared the gentailers’ social licence was starting to fade.

He said consumers saw companies talking “year after year” about needing profits to be able to invest in generation but had not seen that generation happen in a meaningful way for households.

“We don’t see that new generation come online or at least in the quantities that we need to lower prices. Consumer patience is running out with that.”

He said much of the new generation was tied to commercial contracts so households did not benefit.

The price of generation had come down on the back of a good year for hydro power, he said, but retail prices did not change. “That’s just printing money.

“The wholesale market is pricing in the potential dry year risk of there not being enough water in the lakes and there not being enough gas in the gas fields and that means they have to price in their risk which pushes prices up… I think people would have more patience if you saw a flood of renewable generation coming on to the market but we’re just not seeing that we’ve seen piecemeal incremental projects.”

He said in an advanced and industrialised economy the ability to pay for power should not be the issue it is in New Zealand.

Contact chief executive Mike Fuge said it had invested $2.4 billion in building energy infrastructure in the past five years.

“That is 2.4 terawatt hours of new generation, this is enough to power the equivalent of 320,000 Kiwi households…Contact remains focused on minimising price increases; however our input costs are increasing.”

He said lines and transmission charges made up 40 percent of an energy bill and continued to rise.

“New Zealand is in the middle of a renewable energy transition which requires significant investment in lines and distribution infrastructure, alongside the development of more renewable electricity generation.”

Mike Roan, chief executive of Meridian Energy, said he knew people wanted to lower prices.

“So do we, and we’re doing everything we can to achieve that – increasing generation supply and investing in new technology so we can offer even better offers to our customers. This result is going to help us deliver all that and more. When we do well, New Zealand gets the benefits. Around 80 cents of every dollar we pay in dividends goes to the government – 54 cents – or directly to Kiwis through their KiwiSaver and investment funds – 25 cents. We’re also one of New Zealand’s largest taxpayers – 27 percent of everything we earn is paid back as tax for the benefit of New Zealanders.

“Any suggestions that there’s not enough generation being built is just wrong. It’s in our best interests – and everyone’s interests – to make sure New Zealand has all the power it needs and at prices that are as affordable as possible. We’re continuing to build as much as we can, as fast as we can. And we’re not alone.

“The industry is currently building at a rate that is 25 percent higher than at the peak of Think Big and our development pipeline is big enough to double Meridian’s generation. We now hold 8.0 TWh of secured development options and a further 7.3 TWh of advanced prospects – more than a third of New Zealand’s current electricity demand.”

Bridget Abernethy, chief executive of the Electricity Retailers and Generators Association, said the organisation understood it was a challenging time for many households.

“New Zealand is in the midst of a renewable building boom.

“ERGANZ members have added more than $4.3 billion of investment in new wind, solar and geothermal to the renewables pipeline in the past year alone.”

She said MBIE data in the September quarter last year showed the lines component of a power bill up 16.7 percent and energy 6.6 percent.

“This reflects significant capital investment in transmission and local network infrastructure required to meet growing electricity demand across New Zealand.

“Anyone struggling to pay their power bill should contact their retailer as soon as possible, as there is a range of support options available.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Meridian Energy says households could face power bill increases of up to seven percent this year, mostly due to lines and transmission charges.

The country’s biggest power generator returned to profitability in the half-year ended December, posting a bottom-line profit of $227 million, compared to the previous year’s dry-year-driven loss of $121m.

Chief executive Mike Roan said “unfortunately” some cost increases would be passed through to households again this year.

“I had assumed they might be in the order of around 5 percent earlier as we came back from Christmas,” he said.

“But the lines and transmission component has come in higher than expected, so my 5 percent has lifted to more like 7 [percent].”

Lines and transmission cost increases are regulated by the Commerce Commission, and they have been increasing to fund infrastructure improvements.

“The energy component of those increases is just above the rate of inflation, so we are doing a good job of limiting the increases in price driven by electricity costs, but that lines and transmission component is challenging, and it will flow for the next few years through consumers’ bills.”

Roan acknowledged it was “really tough” for customers to hear.

Asked whether companies the size of Meridian could cushion the impact on households, Roan said it did cushion households when it came to energy prices.

“That was evident materially last year given our result where we did buy a whole lot of insurance to protect the electricity system, but we try to pass through those line charges to consumers,” he said.

Meridian has remained competitive in the household market, with the company recording a 12 percent increase in retail sales volumes from a year ago.

LNG will help dry-year risk but no ‘silver bullet’

Mike Roan said the government’s move to import liquefied natural gas (LNG) would help the energy system during dry years.

“The combination of the Huntly strategic reserve, the big demand response agreement we’ve got with the Tiwai aluminium smelter down south, and LNG, will help us navigate future droughts successfully as a country,” he said.

“There’s no question about that.”

Roan said early indications showed forward pricing had also moved lower following the government’s LNG announcement and various power companies’ results.

“Interestingly – and there aren’t many coincidences in financial markets – is those forward prices have come off over the last couple of weeks and since that announcement,” he said.

“I don’t think it’s a coincidence that those prices have started to think about the amount of investment that’s coming to market because we’ve just been through the interim announcements by ourselves and our competitors.”

Roan said forward prices had fallen by around $10 a megawatt hour.

Along with the country’s other major generators, Meridian has extensive projects underway to build new electricity generation.

Meridian said it continued to move at pace towards its goal of having seven generation projects in construction ready by 2030.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

New Zealand exporters are relatively better off after the latest tariff move from the United States.

NZ Post wrote to exporters on Wednesday morning, explaining how the new 10 percent tariff will apply.

The levy came into effect late on Tuesday evening after the Supreme Court last week blocked many of President Donald Trump’s earlier sweeping import taxes. New Zealand exporters had previously been facing a 15 percent tariff.

The administration is applying the 10 percent levy to all imports, including those coming from New Zealand.

However, Trump – angered by the Supreme Court ruling – has threatened to raise the tariff to 15 percent but has not yet issued an official directive.

NZ Post said the measure was scheduled to last until 24 July unless extended or amended.

“In most cases, a 10 percent import duty will apply unless the item falls within an excluded category…

“Some product categories are excluded from the temporary import duty, including certain pharmaceuticals, electronics, passenger vehicles, aerospace products, and qualifying goods from Canada and Mexico.”

NZ Post said its tools and systems would be updated to reflect the new requirements and people could continue to send items as normal.

Part of doing business with US

Kiwibank chief economist Jarrod Kerr said a 10 percent tariff was annoying and a “good revenue generator” for the US government.

But he said it did not do a lot to divert trade. “Particularly in New Zealand where our currency is a bit weaker than where it was, that kind of helps digest that sort of traffic. From what I’ve heard from many of our exporting clients, particularly those going into the United States, the United States is quite a profitable market for them. They pay good prices. I got the feeling they could wear a lot of this.”

He said tariffs of 10 percent or even 15 percent, as previously expected to apply to many New Zealand exports, would just become part of the cost of doing business. “If it’s a 30 percent tariff and higher he [the US President] was originally throwing around, that means much more discomfort in markets and more diversion of trade elsewhere. You might just give up on the US and start exporting more to Australia or trying to get more into China or somewhere else. Isn’t it great we’ve got a free-trade agreement with India? These sort of things all matter a lot more.”

Trump was causing volatility and uncertainty at a time when businesses wanted less volatility and more certainty. “But I don’t think it’s enough to derail us.”

‘A winner in the short term’

Westpac chief economist Kelly Eckhold said it was an improvement for New Zealand.

“We were on 15 percent and it does seem that the categories of exports that had concessions under the previous regime continue to have them, so beef and horticulture are not subject to that 10 percent tariff so in that sense we’re a winner at least in the short term.”

He said what happened in the medium term would depend on what the US decided to do. “[Trump] has this tool available to him for 150 days and he has indicated an intention to replace the previous tariffs with tariffs under different authorities. Those authorities require him to appeal to national security and also trade and balance of payments imbalance issues to justify them. Most of those things I think are difficult to apply to New Zealand’s exports. I’m hopeful we do have some uncertainty but the range of surprises can be capped.”

He was cautiously optimistic. “The really good thing I think is that the discretionary ability to raise tariffs to really high levels … that’s the power that’s been removed by the Supreme Court and that has been the thing that’s really raised uncertainty and driven behaviours in the last year.”

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Source: Radio New Zealand

Steel manufacturer and distributor Steel and Tube has posted another bottom-line loss, but says it’s seeing signs of light at the end of the tunnel.

Key numbers for the 6 months ended December compared with a year ago:

• Net loss $12.4m vs net loss $14.0m
• Revenue $211.9m vs $196m
• Operating earnings $1.2m vs $0.6m
• Product margin 31.1% vs 28.7%
• No dividend

Chief executive Mark Malpass said trading had been lumpy but the edge of a tough marketplace had been taken off by its purchase of a business last year.

“The acquisition of galvanising business Perry Metal Protection – a measured and strategic buy at the bottom of the cycle – has done exactly what we wanted: providing consistent high value earnings.”

He said the core steel business continued to struggle amid the stop-start nature of the recovery, and tighter margins as competitors fought for market share.

Malpass said Steel and Tube was a cyclical business and the broader economy was showing improvement.

“We are starting to see some positive signs – manufacturing demand is on the rise, Fast-Track projects will support the near term infrastructure pipeline, and the rollover of fixed mortgages to lower interest rates and easier access to credit will help to stimulate construction,” he said.

Steel and Tube has been trimming expenses, cutting $3 million in costs over the past year, and said it was focused on holding market share and keeping debt down.

Malpass believed the company was well-placed to benefit as conditions continued to improve.

“As a cyclical business, Steel and Tube is positioned for the upside, with significant operating leverage, a strong market position, a high-quality team, and a broad product and service offer that has been further enhanced by recent acquisitions.”

The company did not give any forecast but expected trading to keep improving in the second half.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

If you picture a real estate salesperson, you probably don’t imagine someone living in a retirement village. But it might be more common than you think.

Ray White general manager and licensee agent Antonia Baker can remember having a meeting with a client in a retirement village at one point, talking about selling her portfolio.

“As I walked out of the lift, I spotted a someone that I know as a real estate agent in West Auckland. And I could tell from the conversation that she was having with the people around her that she was a resident, not visiting like I was. So she was still getting up on a Saturday morning and trotting out to open homes as a Ryman’s resident.”

Real Estate Authority data shows that Baker’s acquaintance is probably not the only real estate salesperson in that situation.

There are 42 people registered with individual real estate license who are aged over 83. Another 168 are aged between 78 and 82. More than 3560 are aged between 73 and 77.

“I have a feeling that’s going to be me one day … why wouldn’t you?” Baker said.

“Some of them are actually quite high volume … There are a couple of legends in the industry who are still quite happily trading and trading decent volumes.”

It isn’t just the older crowd proving stickability, either. Despite a soft housing market, the number of people working in it has stayed relatively constant in recent years.

At the end of October 2025, there were 15,980 active real estate licenses, compared to 15,540 the year before and 15,870 in 2023.

There were 23,078 new licenses issued in the year to June last year, up 22 percent from the same time the year before. There was a 18.4 percent jump in the number of branch manager licenses active, a 1.1 percent increase in salespeople and a 0.9 percent drop in the number of individual agents.

Baker said people who had made it through the pandemic years had probably figured out a way to keep going.

“You were resilient by that time. My assumption around that was that we had baked in sufficient resilience into the industry and into people’s roles and their businesses by that time, that the external factors didn’t have all that much of an effect.

“And if I think about our network, it has just done so much to help the agents that work within it to drive their businesses and to make them resilient so that it doesn’t matter what the trading environment is, we can still survive.”

Real Estate Authority chief executive Belinda Moffat said the number of real estate licenses was down from a peak of nearly 1700 in the post-Covid boom.

“We had that really hot market, and … that’s when we saw a really sharp increase in joiners, so June 2022, we had nearly 17,000 active licenses, and we were issuing about 2600 new licenses a year.

“We then had a bit of a drop over a little bit of a period of time, and we’ve now got about 15,914, and we’ve issued in the last year just over 2000, so there has been, it does shift and fluctuate with the markets, but at the moment, it’s sort of holding steady.”

She said it was noticeable that a lot of people stuck with the industry for a long time.

“I think there’s a number of reasons why people come to real estate of itself.

“I think obviously the economic environment there is … I think people are exploring different professions, but I’d say that the reason people have come to real estate or also why they may not have left real estate is because it offers flexibility.

“Some people find it’s a great profession where you’re working with people, you’re helping people to realise their aspirations of a home and a business or a farm. It’s a pretty busy and dynamic profession, but it is also one that does offer a bit of independence. Most of our licensees are contractors, but having said that, they do have to meet both the expectations of our regulatory system and they also have to meet the expectations of the agency that they work for.”

How much is earned?

Collectively, there was about $70.3 billion in residential real estate sales through salespeople last year, according to Cotality, which at a rate of 3 percent commission could have netted real estate salespeople $2.1b or about $130,000 each. But that amount is generally split between the salesperson who makes the sale and the agency they work for. Some earn significantly more and others much less.

There were about 80,000 sales.

In 2023, the $56b in sales would have made agents about $1.68b or $105,860 each.

Moffat said people should not expect the job to be easy money. Some people left after a couple of years, she said.

“Being a real estate licensee is not an easy job. There is a lot that’s expected of our profession, they have to be over 18, got to have the qualifications, they have to be fit and proper, they have to undertake ongoing CPD or education every year, and then they have to meet the standards of our Code of Conduct that’s overseen by REA, and they can face complaints and disciplinary processes if they don’t, so they have to know a huge amount in order to be successful, and those first couple of years can be pretty tough.

“You’ve got to have some good financial backing, because you’ll look for your listings, then you might get your first couple of listings through people that you know in your networks, but then you’ve got to really be able to just make sure you maintain a pipeline, so it does require a lot of hard work, it’s like starting your own business, you’ve got to really be prepared for getting yourself through the slower months, as well as working hard when you do have a couple of listings on the go, so it’s a profession that does require some really concentrated work, and it’s not surprising because you’re always dealing with people who are perhaps engaging in the most significant transaction they will ever engage in, and it’s full of emotion and risk and financial obligations.”

Some people were working more than one job when the market was tougher, she said.

“That’s something we’ve seen in the cooler market, and as I said, the flexibility of the role can add to that, but at the same time, where they do have a listing, then they are having to work really hard to deliver the best service they can to their customers and clients and meet all the demands that go with being part of a profession that does have quite a few requirements for people to meet.”

Simplicity chief economist Shamubeel Eaqub said people would “live and die” by their sales.

“It’s a very high risk gamble in good markets it works but the way it works is the offices tend to have quite a lot of base income from the advertising and those bits and pieces. So they can sustain a group of people and then there is the whole bunch of people who are at risk.

“If you’re at the top and you’ve been around for a long time … you’ve had some spectacular years. I’m not surprised people are not leaving. My understanding is the more senior you are the less turnover there is. You’re less likely to be out there doing the putting up the signs and those kinds of things and in more of a leadership role. Those positions are still quite lucrative and they’ve been through many cycles so they know how to manage that.”

Lincoln University professor of property studies Graham Squires said people sometimes teamed up to share commission, which also helped.

“If you get say 4 percent on an $800,000 house you could be getting $32,000, so there’s probably enough in the market for people to say well as long as I break even or get a few sales, enough to keep me going, that will keep me in the industry.

“You could argue estate agents have a mindset where they’re optimistic that the market will improve. We see a lot of professional institutions talking up the market a lot even when it might not need to be talked up.”

Change coming?

Moffat said there was change happening. Salespeople were being given guidance in the use of AI.

Baker said salespeople were being offered training on how to “beat the bot”.

“I think fundamentally it is what everyone laughingly refers to as a belly-to-belly transaction. There’s no getting around the requirement for a human. And in fact, it’s the human that tips it over the line, not the bot. And it will always be like that, always.”

Squires said flat-fee competitors had not been able to get as much of a foothold in the industry as might have been expected, given consternation sometimes expressed about the level of real estate commission.

“I think the franchises probably have value to add and have some power and weight in the market in terms of reach and marketing and those sorts of things.

“I suppose they have education and marketing and training that’s allied with being part of the franchise that you contribute to when you make the sales.

“There’s a few big players … some of the larger organisations do buyouts and things like that so it sort of evolves in a larger space.”

Eaqub said it was a difficult industry to change. “It’s your biggest purchase or sale and tradition and brand awareness and trust and all those things matter a great deal. It’s not a price driven thing for a lot of people, if you’re spending millions of dollars or hundreds of thousands of dollars one percentage point here or there is like in the margin of error in terms of house prices going up and down.”

Baker said when the economy was difficult, people tended to move towards brands they knew.

“Then they tend to go back to the old, big, tried and tested providers. And I think that is the same in our industry. When the economy gets a bit scary, people go back to the big brands that they trust that have been around for 125 years and that they know.”

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