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

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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