22 February 2017
TVNZ DELIVERS STABLE NPAT HALF YEAR RESULT
TVNZ has delivered an after tax net profit of $12.9 million for the six months to 31 December 2016, up 1% on the same
period last year.
Announcing the result today, Chief Executive Kevin Kenrick said overall TVNZ is continuing to out-perform a declining TV
market by growing its share of audiences and revenues. TVNZ is on track to achieve the full year target set out in its
2017 Statement of Performance Expectations, he said.
“TVNZ’s financial performance has shown resilience during a period of unprecedented change in the media industry. The
New Zealand television advertising revenue market decreased 8.4% for the half year, however TVNZ was able to partially
offset this through increased market share and growth in online revenues to achieve advertising revenues for the period
of $159.4 million (down 5.1% from $168.1 million for the six months to 31 December 2015). Additionally, a concerted
focus on expenditure means lower costs have also helped to offset the lower revenues,” said Mr Kenrick.
Mr Kenrick said TVNZ’s increased share of TV audiences has been led again by news and current affairs programming along
with high performing entertainment options across TVNZ 1, 2, and DUKE.
“TVNZ continues to be a big part of people’s daily lives – each day we reach more than 2 million viewers. Of the top 20
most watched shows by New Zealanders, 1 through to 19 were all on TVNZ.”
“While free to air television continues to provide unrivalled daily reach compared to other media options, increasingly
audiences are showing up online. TVNZ’s total digital streams topped 81 million for the period: 1 NEWS streams increased
37% and TVNZ OnDemand streams were up 24% on the same period last year.
“This digital growth remains a priority for the remainder of FY2017. TVNZ will shortly launch a new website which brings
live TV and ondemand viewing together in one place. It will give TVNZ’s 1.4 million registered online users a
significantly improved and more personal entertainment experience.”
“The pace of change in our industry won’t let up, and our business needs to keep adapting to reflect the new market
reality. While our NPAT is up nominally, TVNZ’s underlying performance is down 6.2% (EBITDAF of $26.7 million as at 31
December 2016, compared to $28.5 million for the six months to 31 December 2015) so our focus is on building on current
momentum to create a sustainable future video business for TVNZ.
“This includes progressing content initiatives for younger viewers and fast-tracking innovative ideas from within the
business – such as eSports on DUKE and TVNZ OnDemand, the New Blood Webseries competition, establishing a content
creation hub and fostering emerging talent.
“While the ongoing fragmentation of viewing audiences will continue to impact free to air audiences we expect the second
half of the financial year will bring some certainty around the local market structure as the outcomes in relation to
the mergers between SKY/Vodafone and NZME/Fairfax are determined,” said Mr Kenrick.
Financial Highlights Summary – Six months ended
31/12/16 31/12/15 000’s 000’s Operating Revenue168,741 178,646Advertising revenue159,424 168,081 Operating Expenses(142,054) (150,196) EBITDAF26,687 28,450 Depreciation and Amortisation(8,282) (7,641)Interest Income331 703Interest Expense(74) (45)Financial Instruments/foreign currency gains/(losses)(857) (3,557)Share of results of joint venture9 0Income Tax expense(4,963) (5,204) After Tax Profit12,851 12,706 Operating Cash Flow29,318 27,890
ENDS