Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


TVNZ boosts first-half profit jumps 47% as ad revenue gains

TVNZ boosts first-half profit jumps 47% as ad revenue recovers, writes off Igloo investment

By Paul McBeth

Feb. 27 (BusinessDesk) - Television New Zealand, the state-owned broadcaster, boosted first-half profit as advertising revenue gained and operating costs fell, and has written down the value of its investment in a joint venture with pay-TV operator Sky Network Television.

Net profit rose to $20.8 million in the six months ended Dec. 31, from $14.2 million a year earlier, the Auckland-based state-owned enterprise said in a statement. Operating revenue rose 3 percent to $201.9 million, with a 2.4 percent lift in TV advertising sales to $171.5 million and a 23 percent gain in digital revenue to $6 million.

“The highlight of our half year result is the strong growth in operating earnings, fuelled by increased advertising revenue and a 10% reduction in non-programming costs,” chief executive Kevin Kenrick said. “TVNZ’s half year results are encouraging and we expect our strong slate of new season content will ensure we achieve if not exceed our full year Statement of Intent forecast.”

The state-owned broadcaster, which is investigating staff using its facilities to host a political meeting, anticipates a net surplus of $16.8 million in the 12 months ending June 30, 2014, on revenue of $357.3 million, according to its latest Statement of Intent.

In September, TVNZ reached an agreement with shareholding ministers Craig Foss and Bill English to forgo dividends to allow the broadcaster to spend the proceeds of a property sale to SkyCity Entertainment Group on refurbishing its Victoria St West building and upgrading its online technology.

The broadcaster recognised an impairment of $3.2 million on property, plant and equipment, and a $6.1 million impairment and loss from its associates, saying it wrote down its remaining investment in its Igloo stake due to the uncertainty of the timing of future profits from the set-top box offering with Sky TV.

Last year TVNZ told Parliament's commerce select committee it may have to wait up to six years before their Igloo budget pay-TV service gets into the black.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news