TVNZ Interim Results

30 March 2006

TVNZ Interim Results

TVNZ has reported a net surplus after tax of $23.3 million for the half year to December 05.

The Chairman, Craig Boyce, described the result as satisfactory in the context of a slowing economic environment.

"This represents a solid outcome given a reduction in revenue resulting from the closure of TVNZ's satellite services business and a decline in advertising revenue," Mr Boyce said.

Last year's Interim Result was $30.7 million net surplus after tax, but this year's result is not directly comparable because of the impact of a one-off accounting adjustment that changed the period in which programme costs are recognised.*

Advertising revenue was down 3.6% on the record levels posted in the prior year and ended at $186.7 million for the period. Increased revenue from TV2, resulting from its outstanding performance, partially offset the reductions from TV ONE in the current period.

Mr Boyce said the levelling off in advertising revenue would undoubtedly mean a tight focus on costs at TVNZ.

"A reduction in revenue combined with an immensely challenging competitive environment will require us to be on our toes," he said.

Programming highlights for the half year included TV ONE's extensive election coverage, the extraordinary ratings and audience share achieved for Desperate Housewives on TV2, and Frontier of Dreams - the first comprehensive television history of New Zealand.

During the period TVNZ broadcast all but two of the top 50 programmes watched by New Zealanders of all ages.

Continuing the pattern established last year, the Interim Report also includes a reconciliation of Charter funding for all programmes broadcast during the six month period.

The Interim Report can be downloaded at: http://corporate.tvnz.co.nz

ENDS

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