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

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news