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

 

TVNZ Reports Lift in After Tax Profit

3 September 2012

TVNZ Reports Lift in After Tax Profit

Television New Zealand today reported an increase in After Tax Profit for the year ended 30 June 2012 – from $2.1 million in the prior year to $14.2 million.

Advertising revenue was $313.7 million, up $9 million on the prior year and TVNZ increased its share of television advertising revenue to 62.2% from 61.6% in the prior year and secured 92% of the total market growth for the 12 months ended 30 June 2012.

Underlying earnings of $27.9 million decreased by just under $4 million on the previous financial year. Increases in the cost of television programming, particularly overseas programming, were the primary driver of lower underlying earnings.

TVNZ Chief Executive Kevin Kenrick says the result is a satisfactory outcome and reinforces the company’s position as New Zealand’s leading Free to Air broadcaster and digital media company.

“Both the network’s Free to Air channels exceeded their commercial targets this year, driven largely by strong local content on TV ONE and the continuing success of TV2, which has now held the lead in its targeted demographic of 18 to 39 year olds for an unbroken run of 44 consecutive months”, he said.

The strength of the network’s content was reflected in the annual Top 20 list – 17 out of the 20 most popular shows during the year came from TVNZ.

“TVNZ Ondemand has also shown strong growth and distribution of the platform is currently being extended to devices such as Apple iPads, Samsung Galaxy Tablets, and Samsung smart TVs once testing is complete,” Mr Kenrick said.

During the year the company signed a joint venture deal with SKY TV for Igloo, a new pay platform due to launch shortly in which TVNZ holds a 49% interest.

It also ceased transmission of digital channel TVNZ 7 on the expiry of Government funding.

TVNZ won a number of top industry awards. For an unprecedented fourth successive year, ONE News won Best News at the annual AFTA awards, and for the second year in a row the company was named by specialist recruitment & HR service provider Randstad as one of the top three most attractive employers in the country.

Mr Kenrick says TVNZ is embracing the need to adapt and keep pace with media industry changes and has embarked upon an update of its strategic direction to determine how it will continue to deliver the most compelling content for New Zealanders and expected financial returns.

The after tax profit of $14.2 million includes the impairment of assets held for sale and impairment & remediation costs associated with the switching off of the analogue transmission service for broadcasting television signals. The results also reflect a share of associates relating to the start-up operation costs of the Igloo joint venture

This year, a dividend of $11.3 million will be paid to the Shareholder. As in prior years, non-cash impairment charges were added back to the after tax profit when the Board declared the dividend from this year’s operating results.

The Annual Report is expected to be tabled in Parliament in early October.


ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Auckland Airport: North American Touch Downs Make AA Most Connected In Australasia
The return of American Airlines, the world’s largest airline, announced today has cemented Auckland Airport’s title as the Australasian airport with the most non-stop connections to the United States and Canada... More>>



Reserve Bank: Monetary Conditions Tighten By More And Sooner

The Monetary Policy Committee today increased the Official Cash Rate (OCR) to 2.0 percent. The Committee agreed it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability... More>>


The Download Weekly: Vodafone FibreX back in court

Vodafone and the Commerce Commission head back to court over FibreX in a week the TCF issues broadband marketing codes that should avoid similar problems in the future... More>>



Kiwibank: Savers To Benefit From Higher Returns Following OCR Rise

Following market movements Kiwibank is pleased to increase the interest rate and rates of return on its savings accounts... More>>

Fonterra: Provides 2022/23 Opening Forecast Farmgate Milk Price & Business Performance Update
Fonterra today announced its 2022/23 opening forecast Farmgate Milk Price and provided an update on its third-quarter performance... More>>


Stats: Quiet Start For Retail In 2022
The volume of retail sales was relatively unchanged in the March 2022 quarter, following a strong increase in the December 2021 quarter, Stats NZ said today... More>>