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

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news