INDEPENDENT NEWS

Stable Earnings, Stronger Local Content And Ondemand Growth

Published: Thu 29 Aug 2019 09:33 AM
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

Next in Business, Science, and Tech

COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy
By: Statistics New Zealand
Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate
By: Joint Press Release
Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea
By: Ministry For Primary Industries
New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand
By: IDC New Zealand Ltd
Mediaworks Reaches Agreement To Sell TV Operations To Discovery, Inc.
By: Mediaworks
Public Transport Distancing Requirements Relaxed
By: Ministry of Health
New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs
By: New Zealand Hemp Industries Association Inc
One In 14 Employed People Report High Risk Of Losing Jobs
By: Statistics New Zealand
ASB Quarterly Economic Forecast Shows NZ Economy Doing Better Than Expected, But Challenges Remain
By: ASB
Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea
By: SAFE
FMA Releases Report Into Active And Passive Fund Management
By: Financial Markets Authority
New Zealand In Deepest Recession In Living Memory
By: New Zealand National Party
Record Transport Investment To Help Economic Recovery And Save Lives
By: New Zealand Government
Trucks And Roads The Key To Economic Survival
By: Road Transport Forum
Building Confidence Crucial Amid An Uncertain Economic Recovery, Says OECD
By: OECD
View as: DESKTOP | MOBILE © Scoop Media