Great Half Year Result Prepares TVNZ For Future

EXCELLENT SIX MONTH RESULT PREPARES TVNZ FOR THE FUTURE

TVNZ has today announced one of its strongest ever performances which its Chairman, Rosanne Meo says puts the company in great heart as it prepares for the exciting challenges of the digital age.

The company’s 1999 result, tabled in Parliament this afternoon, records an increase in TVNZ’s operating surplus, an increase in revenue, a steady on-air ratings performance, and a record dividend to its shareholders, the public of New Zealand.

The 1999 report marks a change in TVNZ’s balance date from 31 December to 30 June and accordingly reflects the financial and business performance of the first six months of 1999.

Highlights include:

 An operating surplus (earnings before non-recurring items and taxation) of $21.4m compared with $17.6m in the first six months of 1998. This represents a 21.4% improvement in the operating performance of the business.

 Total revenue in the first six months of 1999 was $195.8m, compared with $192.6m in the same period of 1998 - a 1.6 % increase.

 A reduction in costs of 0.3% from $175m to 174.4m.

 The total net surplus for the six months is $167.3m.

 This result includes one-off gains of $161.6m arising from the sale of the company’s investments in CLEAR, Sky, and the remaining 20% of Natural History NZ Ltd.

 These gains have been used to pay special dividends amounting to $100m with the remaining $61.6m retained. These dividends have been paid in two parts - $70m was paid in late June with the balance of $30m paid following the receipt of the Sky proceeds and the completion of the audit of the company’s results.

 Total dividends for the period amount to $106.2m.

 TVNZ’s commitment to strong local and overseas programme has been reflected by the top 30 programmes (5+) on New Zealand television in the report period being screened on either TV ONE or TV2.

 TVNZ news & current affairs programmes enjoyed outstanding successes at the 1999 Qantas Media awards. They won 32 out of the 46 awards on offer, including all the major journalism awards.

Rosanne Meo, says the significant improvement in operating profit is a clear indication that the company is performing strongly, both financially and on air.

“This result confirms the ability of TVNZ to compete, to be financially robust, and to meet and address the changing needs of our viewers and advertisers”, she says. “We can now face an imminent move into the new world of digital broadcasting with confidence.”

“It is a tribute to the staff and management of TVNZ.”

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