INDEPENDENT NEWS

TVNZ Reports Lift in After Tax Profit

Published: Mon 3 Sep 2012 02:05 PM
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

Next in Business, Science, and Tech

Westpac NZ Sets Out Plan To Go Cheque-free
By: Westpac
Major New Zealand Upgrade Programme Projects Go To Tender
By: NZTA
Reserve Bank Seeks To Preserve Benefits Of Cash
By: Reserve Bank
Double-dip recession next year, but housing rolls on
By: RNZ
Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific
By: Microsoft New Zealand
Fonterra Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production
By: Fonterra
Businessman Eric Watson sentenced to a four-month jail term
By: RNZ
OECD Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020
By: OECD
Spark Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities
By: Spark
Monthly Migration Remains Low
By: Statistics New Zealand
Proglacial Lakes Are Accelerating Glacier Ice Loss
By: University of Canterbury
Fonterra Sells China Farms
By: Fonterra
Inland Revenue Reminder About The End Of Cheques
By: Inland Revenue Department
Final countdown for Kiwibank cheques
By: Kiwibank
New Zealand Moves To Protect Cash
By: Next Payments
View as: DESKTOP | MOBILE © Scoop Media