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

 


TVNZ lifts annual profit 25% on flat ad revenue, quits Igloo

TVNZ lifts annual profit 25% on flat ad revenue, quits Igloo

By Paul McBeth

Aug. 29 (BusinessDesk) - Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television.

Net profit rose to $18.1 million in the 12 months ended June 30 from $14.4 million a year earlier, beating the $16.8 million surplus forecast in its 2014 statement of intent, the Auckland-based company said in a statement. Revenue slipped 0.45 percent to $360.6 million, while underlying earnings, which stripped out gains from asset sales, rose 7.5 percent to $27.2 million.

"Encouraging progress has been made in the last year as we reshape TVNZ to succeed in the rapidly evolving media world," chief executive Kevin Kendrick said. "Content continues to be at the heart of the business and our future slate of new and returning local and international programming is very strong."

In September last year, TVNZ agreed to sell two plots of prime Auckland real estate to SkyCity Entertainment Group for $10.6 million, which it would use to refurbish its main building on Auckland’s Victoria St West, where it plans to house its staff. The government agreed to forgo dividends for up to three years to help fund the upgrade.

TVNZ today said it exited stakes in Hybrid Television Services and Igloo, selling its minority stakes back to Hybrid and Sky TV respectively.

"The recent exit of non-core assets has freed up capital to invest in technology infrastructure to fast track online growth and to refurbish its Auckland building to meet future accommodation needs in one central location," the broadcaster said.

TVNZ invested $12.25 million for a 49 percent share in Igloo in 2012, but reduced its shareholding size to 34 percent last year before completely exiting the business this year.

The broadcaster took a $3.2 million charge on asset impairments and a $6.3 million charge on its share of losses in associates in 2014.

Television ad revenue shrank to $306.8 million in the year from $311.6 million a year earlier, though digital ad spending climbed to $12.9 million from $9.9 million.

Advertising Standards Authority figures show TV advertising turnover climbed 18 percent to $634 million in calendar 2013, while interactive ad turnover rose 21 percent to $471 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news