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

 

TVNZ reports first year of stable revenues since 2012

TVNZ reports first year of stable revenues since 2012, profit up

By Pattrick Smellie

Aug. 24 (BusinessDesk) - State-owned broadcaster Television New Zealand is counting its first year of stable revenues since 2012 as a win as it reports a 58.6 percent increase in operating earnings for the year to June 30.

Total revenues of $318.5 million, an increase of 0.6 percent on the previous year, produced operating earnings of $24.6 million before interest, tax, depreciation, amortisation and changes in the value of financial instruments.

On a profit before tax basis, earnings were up 265 percent to $5.1 million, reflecting the fact that TVNZ had to write down $12.4 million against “onerous” contract terms for some of its international content. That impact has flowed through the accounts now, creating a dramatic bounceback in reported earnings as a result.

“From a financial perspective, the most significant shift is stable topline revenue,” TVNZ chief executive Kevin Kenrick told BusinessDesk. “This is the first time we have stable revenue in the past six years.”

The challenge now was to continue to replace revenues from traditional ‘linear’ TV with revenue derived from its growing revenues from online streaming, which had “hit its straps” going in the second half of the last financial year and was continuing to show strong momentum in growth, he said.

Also assisting was a continued reduction in operating costs, which fell 2.4 percent to $293.9 million.

“Cost control is a given in our sector now,” said Kenrick. “It’s the combination of the two (stabilising revenue and stable costs) that is giving us growth in earnings.”

While TVNZ had continued to grow its share of total advertising spending and the trend back towards a greater share of ad spend going to traditional TV had continued, Kenrick conceded that retail advertising had been “softening in recent months” in line with declining business sentiment.

“Retail is tough at the moment,” he said, although the company remained optimistic about ad spend growing in the lead-up to Christmas.

Total advertising revenue was $301 million, compared to $299.1 million the previous year.

Growth in online streaming saw TVNZ On Demand crack 100 million streamed views in the year to July, and a 15.2 percent increase over the year to June 30, compared to the previous year.

Its social media platform, Re, which plays shorter content and aims to attract a younger audience back to TVNZ, had recorded 30 million views during the year, with efforts to monetise the new channel a priority for the year ahead.

The revenue model for Re would concentrate on partnerships and sponsorships rather than traditional advertising, Kenrick said.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>


Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>