Good morning, everyone, and welcome to New Zealand Media and Entertainment's 2021 annual results webcast. My name is Suha Park, Investor Relations Manager at NZME. Presenting on the call today will be NZME's Chief Executive Officer, Michael Boggs, and NZME's Chief Financial Officer, David Mackrell. All attendees will be in listen-only mode for the duration of the presentation, after which we will open the webcast to shareholders and analysts for questions. At this time, if you wish to ask a question, please hover over your mouse over the bottom of your screen and click Raise Hand. You will then be prompted to unmute your microphone on Zoom and will be able to talk. Please note that only participants on the webcast will have the facility to ask a question. If you have any technical questions, please use the chat function also at the bottom of your screen.
I will now hand you over to our CEO, Michael Boggs.
Thanks, Suha, and good morning, everyone. Thanks for joining us for NZME's 2021 annual results briefing. If you're on the webcast, you'll be able to follow us as we take you through the presentation pack that's on the screen. I'll initially take you through our results summary. I'll update you on the impacts of the COVID-19 restrictions on our advertising revenue in 2021. I'll then take you through our strategic priorities, market performance, and then the performance of each of NZME's divisions. I'll then hand over to David, who'll take you through the financial results. I'll then return to share our view on our outlook for 2022, and David and myself will be available to take your questions at the end. I'm pleased to be able to highlight earnings growth, the elimination of debt, and on the balance sheet, a significant final dividend for the year.
On page three, you'll see our 2021 results summary. You'll see that despite the continued impact of COVID-19 on demand during the year, our operating revenue grew 5% to NZD 349.2 million. Our operating EBITDA was NZD 66 million. This is in line with last year after adjusting for the impact of the change in accounting treatment of software as a service configuration costs. Dave will talk about this a little bit later. Net profit after tax was NZD 34.4 million, which was NZD 19.9 million higher than last year after including the gain on sale of GrabOne of NZD 15.4 million. Pleasingly, our operating NPAT was 6% higher than last year at NZD 23.6 million.
As you'll note, our balance sheet has significantly strengthened, and we closed the year with a net cash position of NZD 13.5 million. That's an improvement of NZD 47.4 million on the net debt position that we had at the end of 2020. Given the significant progress made with revenue and profitability growth and a positive improvement in the debt position, the NZME board has declared a fully imputed and fully franked final dividend of NZD 0.05 per share. This brings the total dividend for the year up to NZD 0.08 per share. I'm really delighted that we made significant progress across each of the three strategic pillars of audio, publishing, and OneRoof during the year.
You'll see the highlights on the left-hand side of the page, and these include a 37% growth in total digital revenue, highlighting the progress being made on our digital transformation. Our audience continues to grow with our radio audience market share 1.8 percentage points higher than last year. Digital subscriber growth momentum has ensured that our total subscriber base has grown to 191,000, with our digital-only subscribers up 54% to 83,000. That's a growth of 30,000 during the year. In OneRoof, our real estate business grew digital revenue by 90%, demonstrating its potential as a classified real estate platform. This result demonstrates the strength of our business as it continued to deliver improved outcomes, and we progressed our strategic initiatives during what's been another difficult operating environment in 2021. Let me now take you to page four.
This graph shows the monthly advertising revenue over the last three years, identifying the months that have been impacted by COVID restrictions during the last two years. Our objective's been to return advertising revenues to the pre-COVID 2019 levels. These are the light bars on the chart. In the first half of 2021, this was progressing well and actually saw June 2021 ahead of June 2019. However, as you'll know, COVID-19 restrictions were reintroduced in August of 2021. This meant that our Q3 2021 advertising revenue was down 11.7% on Q3 2019. When the restrictions were lifted later in the year, a stronger November and December performance ensured that the second half of 2021 was only 4.3% down on the 2019 levels. Excellent growth in that last quarter.
We're currently in the early days of our Omicron outbreak and therefore we remain cautious at this time. We'll come back to that a little bit later. I'll now cover our strategic priorities and our performance in the context of the overall market performance. Firstly, it's useful to briefly recap on our strategic priorities. You can see our guiding principles across the top of page six. These principles guide each of our strategic priorities. These priorities are firstly, to be New Zealand's leading audio company. Secondly, for the New Zealand Herald to become New Zealand's Herald. And finally, for OneRoof to become your complete property destination. As you'll see, we have key pillars of delivery under each priority. I'll talk to these later in today's presentation also. On page seven, you'll note that NZME operates as an audience and customer-centric integrated multi-channel media business.
We now connect advertisers with our audio, publishing, and real estate audiences, which in total reach over 3.5 million New Zealanders every month. This was growth on last year. Our radio audience of 1.9 million is achieved through our team audio brands and includes New Zealand's number one radio station, Newstalk ZB, across both broadcast and digital audio formats. iHeartRadio is also New Zealand's number one podcast network. We now have a publishing audience reaching over 2.8 million, which includes 50% of New Zealanders who engage with thenewzealandherald.co.nz per month, together with New Zealand's number one daily newspaper and a publishing subscriber base of more than 191,000 subscribers. OneRoof real estate products now reach over 850,000 through both our OneRoof digital platform and our various dedicated property newspaper sections across the nation.
Overall, the NZME audience engages across 32 print publications, 10 audio brands, 17 websites, and 12 real estate publications. Page eight highlights the strong position that NZME has in each market it participates in, and the overall split of revenue across each channel. We're pleased to have achieved revenue market share gains in 2021. We have once again outperformed market revenue growth year on year in radio, print, and digital display advertising. This has resulted in gains in market share to 40.9%, 47.4%, and 24.2% respectively. This is a testament to the ongoing progress we're making in delivering on our strategic priorities and the fantastic content that we produced across our platforms.
The charts on page 9 show the changes in market revenue across radio, print, and digital display, together with how NZME has grown its market share in each channel over the last three years. It's been pleasing to see market growth in 2021, with radio market revenues on a trajectory to return to pre-COVID levels. The digital display market data for the second half of 2021 has not yet been published, but the graph shows the strength of the first half compared to the prior years. As I mentioned earlier, I'm extremely proud of the revenue growth that has been achieved from our digital platforms. The left-hand chart on page 10 shows the emerging growth of digital audio revenue from iHeartRadio. It's up 51% in 2021.
The center chart shows the size of the digital revenue from digital display advertising and the emergence of the growing digital subscription revenue in the publishing business, culminating in a 32% growth in total digital publishing revenue. Finally, in the right-hand chart, you can see the 90% increase in digital revenue from our OneRoof property platform. It continues to strengthen its position to become your complete property destination. Again, these charts highlight the digital transformation that is well underway. I'll now take you through the performance of each of the divisions for the year, together with an update on the strategic initiatives for each division. Let's now start with audio. On page 12, you'll see audio audience metrics. The left-hand chart shows that NZME has maintained total weekly radio listeners year-over-year at around 1.9 million.
The center chart shows NZME's audience market share with the lighter section of each bar, the music audience, and the darker section of the share of the talk audience. The chart highlights how NZME's overall share has grown over the last year, with the growth coming from the strengthening of Newstalk ZB talk radio audience. The chart on the right shows the increase in total listening hours on NZME's digital audio platform, iHeartRadio. It now has average monthly listening hours of over six million. We're seeing phenomenal growth of audience across our audio business. Page 13 shows the financial performance of the audio division. You'll see radio advertising overall grew 10% in 2021. The first half of the year was 17% higher than last year before the impacts of further restrictions being felt from August.
As I mentioned earlier, iHeartRadio revenue grew 51% in 2021, supported by the continued increase in listening hours that I spoke about on the last slide. Other revenue for the division is lower, as last year includes the government wage subsidy relating to the division. As you'd expect, higher advertising revenue resulted in an increase in agency commissions and content costs. This brought EBITDA margin to 12% for the year, which compares favorably to last year when you adjust for the impact of the wage subsidy, which resulted in an artificially high margin. On page 14, you'll see the significant progress towards the 2023 strategic targets for audio. As mentioned earlier, the audience share has grown by 1.8 percentage points this year, exceeding our goal to grow 1% per annum.
We continue to grow reach through frequency acquisitions, but we are also expanding our audience appeal through our focus on podcast content, youth audio, and sports entertainment with the Alternative Commentary Collective. You'll see our radio revenue share grew half a percentage point in 2021, short of our target growth, but we remain confident of future growth rates. In addition, we are working as an industry to grow the overall radio market. We've continued to grow the portion of revenue from digital audio with 3.4% of total audio revenue from digital platforms, mainly iHeartRadio. On the right, you'll see the initiatives we outlined at our November 2021 Investor Day included within the 2022 initiatives on this page. Let's now move on to our publishing business. Page 16 shows the continued engagement from both print and digital audiences.
The chart on the left highlights the strong New Zealand Herald print readership growth through 2020. This has tempered a little in 2021. The Herald's brand audience is shown in the center chart and highlights the continued strength of audience with weekly audience now in excess of two million. NZME's platforms have continued to grow and now reach 2.8 million digital users per month. The charts on page 17 show details of our subscriber base. This continues to grow and now totals more than 191,000 across both NZME's print and digital subscription platforms. While print subscriber volumes continued to decline by 3%, as shown in the left-hand chart, a 2% yield improvement partially offset the volume decline. The center chart shows the continued growth in the subscriber base.
The subscriber mix highlights the significant growth of subscriber engagement in our New Zealand Herald Premium digital product. As I noted, overall, the subscriber base grew to over 191,000, of which 140,000 are users of New Zealand Herald Premium. The chart on the right shows the steady growth to 83,000 digital-only subscribers since launching in the second quarter of 2019. Digital-only subscribers grew by 30,000 during the year. The green line on the chart shows that the annual yield has remained relatively constant as subscribers have grown. Let's now move to page 18 to review publishing's financial performance. Print advertising revenue improved by 5% compared to 2020, albeit it remained more than 20% lower than 2019.
In contrast, though, digital advertising revenue has grown significantly, resulting in a 26% improvement over 2020, and it's 29% higher than 2019. Other revenue was lower than 2020 as 2020 included NZD 4.2 million of wage subsidies received. Print and distribution costs were 13% higher than last year due to increased volumes this year, given the temporary reductions in 2020 in response to COVID. Agency commissions increased in line with the higher revenue through this sales channel. As a result of the change in accounting policy with regards to software as a service, previously capitalized costs have now been expensed. This increased recognized expenses by NZD 1.7 million in 2021, and NZD 1.4 million in 2020. Overall, the publishing EBITDA for the year was 1% higher at NZD 46.5 million.
Page nineteen shows the progress we've made towards making the Herald New Zealand's Herald. As noted, total subscribers increased by 13% to 191,000, with 43% of these subscribers being NZ Herald Premium digital subscribers, well on track to achieving our 2023 targets. With the significant growth in digital advertising revenue this year, it now represents 46% of total publishing advertising revenue. We continue to enhance our product offerings through multimedia storytelling, and we have plans to launch new subscription verticals. We're also pleased to have BusinessDesk join us at NZME. BusinessDesk has built a premium digital offering focused on the business community. We are working well with the BusinessDesk team to accelerate their growth.
You'll note that the 2023 EBITDA target has been adjusted to reflect the impact on EBITDA of the software as a service change in accounting policy. Let's now turn to NZME's real estate division, OneRoof, on page 21. The chart on the left shows the OneRoof platform has a strong position in the market. It now has 91% of residential for sale listings nationwide and 99% in Auckland. OneRoof's monthly audience continues to grow as shown in the center chart and is regularly around 500,000 people per month, excluding this December's holiday season. Listings upgrade growth is shown in the chart on the right of the page. You can see the focus that we've put onto upgrades in Auckland has lifted the upgrade percentage to 27% in the last quarter.
Regional upgrades have also begun to lift, with growth over the last two quarters. On page 22, you'll see that OneRoof digital revenue on the platform grew by 90% to NZD 8.1 million, while print revenues were in line with last year. OneRoof revenue grew 20% after adjusting for the wage subsidy received last year. Marketing and selling costs were significantly higher as OneRoof invested in improving brand awareness, listings penetration, and listings upgrade conversion. EBITDA was similar to last year at NZD 2.1 million, with the increased investment focused on growing the digital business. You'll note that pleasingly, real estate industry revenue across all NZME brands was NZD 41.3 million. That's an 18% increase over 2020. OneRoof has continued to progress its position to become your complete property destination, and that's highlighted on page 23. OneRoof is strengthening its reach.
It's focusing resources nationally to drive listings growth and to introduce new products within the platform. There is a strong focus on growing the audience and on increasing national brand awareness. The percentage of listings upgrades have continued to increase, with bespoke product bundles key to ensuring that value is being delivered to customers. We are targeting to continue growing digital revenue, assisted by the addition of new listing verticals and additional solutions for agents. Slide 24 shows the performance of the corporate division. This also includes our events business and our automotive website, Driven. Revenue has increased 25% to NZD 3 million, with additional events able to be run in 2021 and growth in revenue from Driven. Expenses were 10% higher, primarily as a result of additional events during the year, given events were able to be run.
Let me now hand over to David Mackrell, NZME CFO, to take you through the financial results.
Thanks, Michael, and thank you to all who have joined us on the call today. Page 26 shows the operating results for the year with operating EBITDA of NZD 66 million, which is in line with the adjusted 2020 result. The IFRS interpretations committee made an agenda decision in April 2021 with regards to the accounting treatment of configuration and customization costs in relation to software as a service arrangement. As a result, the company has changed its accounting policy in regard to the capitalization of these costs. The result of this was to expense NZD 1.7 million in 2021 that would have previously been capitalized and also to have adjusted the 2020 accounts to reclassify NZD 1.4 million from capitalized costs on the balance sheet to expenses.
The impact on net profit was minimal, as there was an offsetting reduction in the amortization expense. As mentioned, operating revenue is up 5%, with segment revenue up 9%, excluding the impact of the net NZD 8.6 million of wage subsidy received in the first half of 2020. Operating expenses increased by 7%, driven by higher costs in line with increased volumes and higher revenue, noting also that in 2020 we had some temporary cost savings as a result of initiatives in regard to COVID-19. Overall, operating net profit after tax was NZD 23.6 million, which was 6% higher than last year, resulting in operating earnings per share of NZD 0.119 per share. I'll now comment on our expenses for the year on page 27. NZME continues to focus on ensuring it has an efficient cost base.
While overall, the cost base was up 7% on last year, it remains more than NZD 20 million below the 2019 level, supported by the permanent cost base reductions implemented in 2020. Printing distribution costs were 11% higher due to the temporary cost savings achieved in 2020 in response to COVID-19. Agency commission and marketing costs increased to NZD 43.3 million, largely driven by increases in revenue and higher selling costs to grow the OneRoof business. Content expenses increased 9% year-on-year, in line with increases in music royalties and digital content, which supported the higher revenue. Exceptional items totaled a net NZD 10.8 million gain, including a NZD 15.4 million profit on sale of GrabOne, which was completed on 29 October 2021.
This compares to last year's net exceptional cost of NZD 8 million as a result of the significant workforce restructuring conducted in response to COVID-19 during 2020. The summarized balance sheet on page 28 shows a further strengthening position with net assets of NZD 157.1 million. Net working capital, including cash, continues to be a net liability due to increases in tax payable, deferred revenue, creditors, and other accruals. These more than offset the reduction in merchant liabilities as a result of the sale of GrabOne. Plant, property and equipment, intangibles and other net current assets decreased due to depreciation and amortization exceeding capital expenditure. Right of use assets reduced in line with the reduction in lease liabilities as the terms of the leases reduced.
Together with the reclassification of a portion of this asset to a finance lease receivable in relation to the subleased part of the Auckland and Whangarei offices. The company finished the year with a net cash position of NZD 13.5 million, representing an improvement of NZD 47.4 million compared to last year's net debt position of NZD 33.8 million. Moving now to the cash flow summary on page 29. Cash flow from operations was NZD 3.8 million lower than 2020, primarily as a result of higher tax paid for the year and a smaller movement in working capital. These were partly offset by lower exceptional items. Capital expenditure was NZD 6.5 million for the year, which was NZD 1.5 million higher than 2020. Both years have been adjusted for the software as a service accounting policy change.
Ongoing capital expenditure is expected to be between NZD 8 million and NZD 10 million per annum. This is lower than we have previously guided, given the accounting policy change relating to software as a service. Proceeds from the sale of assets includes the cash proceeds from the sale of GrabOne of NZD 17.5 million. The graph on page 30 shows how the company has repaid NZD 100 million of debt over the last three years and is now in a net cash position. This means our leverage ratio is well below our target range. With a strong leverage position, the board has declared a fully imputed and fully franked final dividend of NZD 0.05 per share, bringing the total dividend for the year to NZD 0.08 per share. The dividend will be paid on the 23rd of March, 2022, for shareholders registered as at eleventh March 2022.
I'll now hand back to Michael to talk about the outlook and for the year ahead.
Thanks for it, David. NZME's played a significant role during 2021 with regards to its purpose of keeping Kiwis in the know. You'll see on page 32 some examples of how we've leveraged our powerful platforms to inform, improve and foster conversations on key topics during the year. I'm really proud of how the NZME team came together to create and deliver on the 90% Project, championing Kiwis to get fully immunized by December 2021. This was not only good for New Zealanders, but good for New Zealand businesses and for the New Zealand economy. We felt it was important to lead on this editorial endeavor. We've invested in new platforms and brands that we know will support the delivery of our purpose over the years ahead. Let me now share an update on our outlook provided on page 33.
As you'll know, we are in the early days of our Omicron outbreak. We note that the housing market is cooling and there are inflationary pressures building across the economy. Businesses are therefore being cautious in their marketing approach at this time. Having noted that, though, we are pleased to see that advertising levels currently tracking above 2021, with first quarter 2022 bookings tracking 4% above the first quarter of 2021 levels. This revenue growth is offsetting the inflationary cost pressure that we're seeing. Based on the early trends to date, we would expect EBITDA growth over 2021, despite the loss of the GrabOne contribution from 2021. As previously announced, we have engaged in dialogue with Google and Facebook. To date, they have not provided offers in line with those achieved in Australia, even after adjusting for New Zealand's smaller market and audience size.
We do, however, anticipate a decision from the New Zealand Commerce Commission regarding the provisional authorization to commence collective bargaining in the first week of March 2022. Following this decision, NZME expects to announce the on-market buyback and a further announcement will be made to confirm the commencement of that buyback. We look forward to providing you with further updates at our annual shareholders' meeting in April this year. That concludes today's formal presentation, as David and I are now happy to take your questions.
Thank you, Michael and David. We'll now open the webcast for questions. Once again, if you wish to ask a question, please hover over the bottom of your screen and click Raise Hand. When it is your turn, you will be prompted to unmute your microphone on screen and will be allowed to talk. To ensure everyone gets an opportunity, could we ask that you limit your questions to an initial question and one follow-up question? Please rejoin the queue for questions if you wish, and we will give you an opportunity to ask more questions, time permitting.
Our first question is from Roger Coleman. Please unmute your mic and go ahead.
Good morning, gentlemen, over there. First question relates to the dividend payout policy, the net cash development. If in the long run, you run at a 50% of free cash flow, and looking at the current EPS, you'll be building up maybe NZD 0.20 a share worth of net cash at the proposed dividend payout ratio every 3 years, at least. What's the plan of disposing that after this, getting rid of that excess cash after you do the NZD 30 million stock buyback?
Good morning, Roger, and thanks for that question. No, you're absolutely right. First thing is, we're pleased to have obviously repaid all the debt and be in a strong cash position. That's obviously led the board to not only be able to pay a strong dividend for the year but, you know, signal the, you know, intended commencement of the buyback, with a further announcement on that in a couple of weeks' time. I think as you say, the board's already shown its appetite for returning cash to shareholders. You know, capital management is, you know, certainly key on the agenda of the board meetings, each meeting.
I would expect you to, you know, be seeing on a regular basis excess cash, being able to be returned to shareholders just as we're doing with the share buyback.
Thank you. I'll let other people talk.
Roger, we've got lots of people on the call today, but I think everyone's maybe waiting for you know, other one-on-ones or other questions. Is there anything else you had before we close off, Roger?
Yes. There's a question on the OneRoof gap on Trade Me right from 250,000- 396,000. Is that because Trade Me is stronger than the regional markets or did you just let slack a bit?
We saw actually in the middle of the year, Trade Me have a step up from a volume perspective. We've not been able to explain it from seeing anything different in the market or anything different happening on their site. You know, we're not convinced it's actually a real step change. You know, we're really comfortable with what we're doing from a product perspective and from a marketing perspective, but obviously we've got more to do. We'll continue to focus on building the brand and closing that gap. Having said that, you know, listings are key. We've gotta have the inventory first, so we're doing well on closing that gap, and we're obviously engaging an audience with the upgrades that are now being sold through those listings, which we're pleased to see that growth.
Right. If I'm allowed to just continue on OneRoof, if I look at what's happened since that, let's say mid-February, inventories relative to last year and compare with what happened at the close of calendar 2021, there's been a significant uplift in inventories on the websites, you know, both you guys and Trade Me. With this, Auckland run to 23.5%, are we gonna see revenue growth at OneRoof at current rates in the digital component still running at 50%-60% at least?
Yeah, absolutely. That's our expectation and that's why, you know, you'll see that we have a 2023 goal of significant increases in depth listings overall. You're right in seeing, you know, more listings on the sites and, you know, we often have this dilemma. You know, beginning of last year, properties were selling very, very quickly, so people weren't needing to advertise. Now there's more inventory on the site. Properties are taking longer to sell, so people are advertising. So it's, you know, an interesting time in the market right now.
Right. If I just ask one last question relating to the print media business, right? The increase in distribution costs obviously reflected the low base beforehand. You've got declining print issuance of, say, print publications. Are we gonna see that big cost factor go to zero growth rates with the decline in print revenues?
Yeah. I think, our print and distribution costs are about 50% fixed, 50% variable.
Yeah.
We do see pressure from, you know, as you can imagine, from freight and print costs just from inflationary pressures, so that's something we're working hard to offset. Absolutely, volume declines do help with that.
Right. Look, it's a pity nobody else is carrying on the questions on the telephone call. Rather than making this artificial, I'll hang up. Okay?
Okay.
We have a written question from Dennis Chua. Why is the buyback timing dependent on the decision of the Commerce Commission on collective bargaining? Does that mean the buyback might not happen if the timing is pushed out or the decision is negative?
Oh, hi, Dennis. Thanks for your question. I think, as you're probably aware, markets have to be completely informed when buybacks are being undertaken. Our board, you know, quite rightly said, "Let's make sure the market's fully informed of any pending decisions, positive or negative, at the time before a buyback's commenced." We didn't wanna be in the market when a decision came out, and given it's expected within two weeks' time, we thought that an appropriate action to take.
Thank you, Dennis. We have another question from Shuo Yang. If you could please unmute your mic. Go ahead.
Good morning, guys. Just on the capital management. In terms of acquisition opportunities, you know, what's the scope to do more in acquisitions and the type of acquisitions you will look at? Is it sort of similar to the BusinessDesk acquisition or would you guys look at something larger and bulkier as well?
Thanks, Shuo. This is David. I think in terms of the way we think about the acquisition opportunities, obviously things that will help make us go faster and align with our core strategic objectives, and you can see how BusinessDesk very much fits into that. We're, you know, always on the lookout for the right thing that will make us go more quickly. At the moment, we don't have anything on the horizon, but if something was to come up, it's those sorts of things that fit in with our strategy and make us move faster towards it. That could be, you know, that could be of any size, but at this stage there's nothing on the horizon.
David, just on the cost base in 2022. You know, you know, when the economy opens up, just wanna understand what sort of costs sort of come back into the business, assuming you know, no growth in revenue-related costs.
The cost base as it's, as it sits for this year, in 2021 there was very little temporary adjustments that were made. It was a little different to 2020 where we had a period of time where there was you know no production of some of the newspapers and that didn't occur this year. The cost base is stable in that context. There is only the volume-related costs and inflationary pressures that would you know drive the cost base up in 2022.
Understand. All right. Thank you.
Thanks, Shuo. We have a written question from Jason Hamilton. Can you talk to M&A and the integration of BusinessDesk? Are you actively seeking other opportunities? I think David answered most of that conversation, but perhaps you could talk to the integration of BusinessDesk.
Yeah. Hi, Jason. Thanks for the question. We've actively taken the position that BusinessDesk is a really strong brand in its own right, and we think it can stand completely separate in the market from the New Zealand Herald Premium. Our you know initial integration is as much as making sure that we're using our marketing and sales capabilities to ensure that we can grow it as quickly as possible while it's you know effectively a standalone brand, standalone great team of journalists. At the same time ensuring we use our technology platforms to send audience to it or to send programmatic revenues. We've immediately seen those actions taken and you know beginning to bear fruit. That is our plan.
There's no nothing more than actually ensuring we grow that brand, that business as quickly as we can with using our skills and assets. With regard to other M&A, just sort of carrying on from David, you know, we have no plans to be out, you know, doing any large M&A transactions. I think as we've said before, though, if something turned up and it made sense for shareholders, of course, we'd consider it, and we'd bring it to shareholders if that was the right thing to do. If there are smaller things like BusinessDesk, which are core to the three pillars of our strategy, allow us to grow quicker and generate returns for our shareholders at that sort of level, we think those are good opportunities for us.
Thank you, Jason. We have another written question from Akshai Aman. Agency commission and marketing costs grew faster than revenue in 2021. What drove this, and should we expect a similar trend in 2022?
Yes. There's two separate things there. Firstly, the agency revenue component of our business, which is just over 30% of our total advertising revenues, is the segment of our business that has been growing the quickest. Maybe putting that in perspective, that probably, you know, highlights larger corporates who are dealing with agencies have probably been doing better and spending through their media agencies than smaller SMEs necessarily who have maybe done it a little tougher over the last year. We've seen a bit of a mix change in our revenues over that last year. We've just seen that agency revenue line increase. Then substantially the marketing increases have been within the OneRoof business. That's been a fine balance that David and myself and Paul Maher, who runs the OneRoof business, have been managing.
Let's spend appropriately and invest for growing the overall total audience and growing the brand of OneRoof, while not jeopardizing its profitability. Effectively any incremental available contribution from OneRoof has been put back into marketing to grow it faster.
Thanks. Thanks, Akshai. We have another written question from Dennis. Can you provide more color on what collective bargaining means in terms of timeline and probability of a deal with Google and/or Facebook? Can NZME choose to negotiate independently?
Yeah. Maybe I'll tackle the second part of that question first. Yes, we absolutely would retain the right to continue to negotiate individually, and I think we put out a market announcement back in November last year when we announced that we would look to obtain collective bargaining that we were engaging individually and would continue to do that. That's certainly something that we would protect. We think the ability to be able to negotiate as an industry just allows us to have a stronger voice at the table with the platforms. It allows us to engage with the New Zealand government and policymakers better around what's right for the New Zealand industry to support editorial endeavors overall and, you know, continued investment in journalism.
On timing, I think some of that, you know, would be a bit of unknown. We obviously know that Google has announced it wants to bring Google News Showcase to New Zealand. It hasn't launched it yet. It has done a small number of deals, we understand, but they're really looking to have enough content in New Zealand that would allow them to launch it. Being able to complete arrangements with some of the larger publishers I'm sure would be important to them. We'd be focused on that. Okay. I think that's all of our Q&A for today. Thank you everyone for participating on the call. We'll obviously be catching up with many of you over the next week or so, and we'd be happy to, you know, receive any other questions or calls from you.
There will be a recording of this presentation available on our website by the end of the day. Thank you for your time, and enjoy the rest of your day. Thanks.