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

 

Stable Earnings, Stronger Local Content And Ondemand Growth

Stable Earnings, Stronger Local Content And Spectacular TVNZ Ondemand Growth


TVNZ reported stable operating earnings, continued market leadership of TV audiences off the back of strengthened local content performance and accelerated TVNZ OnDemand growth for the financial year ending 30 June 2019.

The company delivered EBITDAF of $24.6 million consistent with the previous year. Total revenue declined $7.8 million (-2.5%) to $310.7 million, with single digit declines in TV advertising partially offset by double digit growth in online advertising revenue.
Operating expenditure improved by $7.8 million (2.7%) to $286.1 million due to a year-on-year reduction in programming costs.

Net profit after tax was $2.9 million, down $2.2 million (-44%) on the prior year due to a $2.9 million unfavourable movement in unrealised foreign exchange. TVNZ CEO Kevin Kenrick says the company’s financial results are reflective of challenging market conditions.

“In the context of this environment, stable year-on-year earnings is a pleasing result.” Kevin says “the standout achievements for the year have been the stellar ratings performance of our local news and entertainment content, and the growth in TVNZ OnDemand. ”TVNZ screened 19 of the top 20 TV programmes for the year including New Zealand’s most watched news and current affairs shows*.

TVNZ OnDemand achieved 80% year on year growth in viewership to record 184 million video streams for the period and delivered year-on-year increases in weeklyaudience reach (+38%) and advertising revenue (+31%). “We have definitely seen the benefits from our investments to enhance user experiences and device availability, and to bolster our breadth and depth of must watch content for online viewers.”

In the lead up to Rugby World Cup 2019 coverage in partnership with Spark Sport, TVNZ has upgraded studio facilities with ‘state of the art’ augmented reality and video wall capabilities and has fully trialled and tested this new sports production capability. “New Zealanders have responded positively to the availability of live sport back on free-to-air television. TVNZ’s coverage of the T20 Black Clash was the most watched live cricket event in the last 10 years, reaching more than a million viewers over the course of the match.”

The TVNZ Board has agreed with the shareholder to cease dividend payments due to increased investment in local content and digital capabilities. TVNZ has sufficient cash on hand to fund the planned transformation over the next three years. “TVNZ’s competition has shifted from local to global and our future success will be less reliant on being the best in market vs. delivering content services that compare favourably with the global giants,” says Kevin Kenrick.

*Source: Nielsen TAM Consolidated, AP5+ FY18 - 1/07/2018 - 30/06/2019, All Channels, ranked on Average Audience.

FY2019 Snapshot

Earnings: EBITDAF of $24.6 million, consistent with FY18

Net profit: $2.9 million, down 2.2% or 43.5% year on year

Total revenue: $310.7 million, down 2.5% or $7.8 million year on year

Costs: $286.1 million, down 2.7%

TV:
• TVNZ reaches 2 million New Zealanders daily
• TVNZ’s all-day audience share was steady at 43.2%
• TVNZ had 19 of the top 20 TV shows
• Secured RWC 2019 FTA coverage in partnership with Spark
Online:
• 184 million TVNZ OnDemand streams – up 82 million or 80% video stream growth YOY
• 38.5% audience reach growth YOY
• 30 million Re: video views
• TVNZ OnDemand reached 141,145 New Zealanders daily

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Fuels Rushing In: Govt "Ready To Act" On Petrol Market Report

The Government will now take the Commerce Commission’s recommendations to Cabinet...
• A more transparent wholesale pricing regime • Greater contractual freedoms and fairer terms • Introducing an enforceable industry code of conduct • Improve transparency of premium grade fuel pricing... More>>

ALSO:

Reserve Bank Capital Review Decision: Increased Bank Capital Requirements

Governor Adrian Orr said the decisions to increase capital requirements are about making the banking system safer for all New Zealanders, and will ensure bank owners have a meaningful stake in their businesses. More>>

ALSO:

Aerospace: Christchurch Plan To Be NZ's Testbed

Christchurch aims to be at the centre of New Zealand’s burgeoning aerospace sector by 2025, according to the city’s aerospace strategic plan. More>>

ALSO:

EPA: Spill Sees Abatement Notice Served For Tamarind Taranaki

The notice was issued after a “sheen” on the sea surface was reported to regulators on Thursday 21 November, approximately 400 metres from the FPSO Umuroa. A survey commissioned by Tamarind has subsequently detected damage to the flowline connecting the Umuroa to the Tui 2H well. More>>

Taskforce Report: Changes Recommended For Winter Grazing

A Taskforce has made 11 recommendations to improve animal welfare in intensive winter grazing farm systems, the Minister of Agriculture Damien O’Connor confirmed today. More>>

ALSO: