TVNZ Announces Interim Result

TVNZ has announced its 2001 Interim Result for the period 1 July to 31 December 2001, with the company recording a net surplus after taxation of $14.5 million for the period.

The television and media business contributed a net profit after taxation of $5.2 million, while the net profit after taxation for the transmission business was $9.2 million.

TVNZ Chief Executive Rick Ellis said that while the surplus for the period was down $9.9 million on the previous half year, it is a creditable performance in the challenging trading environment experienced during the period, with TVNZ successfully maintaining its share of the free to air television advertising spend

"Most importantly we have achieved this result without sacrificing in any way the high standards and local programming content that the New Zealand public has come to expect of TV ONE and TV2," said Mr Ellis.

Soft advertising market conditions saw advertising revenue down $3.2 million (2%), which, while disappointing, is significantly better than many international broadcasters. ITV in the UK, for example, experienced a 12% reduction in net advertising revenue. In its 2002 Global Media report, ABN AMRO stated that 2001 was the worst year for advertising in 50 years, with global advertising estimated to have declined by 5.7%

"The reduction in television advertising revenue was partially offset by an increase in other television related revenues, particularly royalties and merchandising activity," said Mr Ellis

Renegotiation of several major transmission contracts resulted in a reduction in BCL revenue, which was offset in part by strong performances by TVNZ Australia and TVNZ Satellite Services. The overall reduction in transmission revenues was $6.8 million (8%). The 2001 Interim Report can be downloaded at www.tvnz.co.nz/links/interim2001.pdf

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