TVNZ Announces Interim Report

22 March 2000 TVNZ MEDIA RELEASE

For immediate release

TVNZ ANNOUNCES INTERIM REPORT

TVNZ has today announced its half yearly result for the 6 month period ended 31 December 1999.

TVNZ Chief Executive, Rick Ellis, says the company’s result records significant advertising revenue growth, resulting from consistent channel performance and the success of the highest level of special event programming in the company’s history. The operating surplus representing 19.6% of revenue, was consistent with the same period last year, despite the high production cost associated with the special events.

“Special event programmes produced by the company included the Netball World Cup, APEC Conference, Rugby World Cup, the General Election, Louis Vuitton Challenger Series and the TVNZ 30 hour Millennium Special,” he said.

Other highlights include:
- Revenue growth of $17 million to a total of $250.4 million which represents growth of 7.3% over the same period last year
- An operating surplus (earnings before non-recurring items and taxation) of $49.1m consistent with previous periods 1998 surplus of $50.3m
- Net profit after tax of $21.6m after allowing for non-recurring costs associated with the settlement of a claim brought by a former presenter, and write-offs associated with the cancelled digital television joint venture
- The Directors have declared an interim dividend to the Shareholder of $15.1 million

“Following successive gains in audience share over the past several quarters, the company achieved a total free to air television audience share of 76%, its highest share since 1995, which reflects the successful positioning and development of the TV ONE and TV2 brands in the New Zealand market,” said Mr Ellis.

The company’s digital television plans were suspended in January 2000, the Shareholder advising that it will review the future of digital television for TVNZ in line with specific government policy objectives.

BCL has commenced the implementation of a multi-million dollar high capacity digital microwave radio network in New Zealand. This will provide exciting new opportunities in the broadband digital transmission area. In addition, TVNZ Australia continues to expand its contracting activities in the Australian market.

“The strong interim result reflects the dedication of staff during the most intense and demanding event programme production period in the company’s history,” said Mr Ellis.

Ends

Contact: Liam Jeory, Communications Manager
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