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TVNZ INTERIM RESULT ON TRACK


1 March 2016

TVNZ has delivered an after tax net profit of $12.7 million for the six months to 31 December.  This puts the company on track to achieve the full year financial targets set out in its 2016 Statement of Intent.

Announcing the result today Chief Executive Kevin Kenrick said overall TVNZ is well placed and continuing to perform strongly in a challenging market environment.

“TVNZ has grown its share of peak TV audiences, led again by News and Current Affairs programming and ably supported by New Zealand’s most watched entertainment shows. ONE News was the most watched programme for the period with an average audience of more than 680,000 viewers.”

“Although market demand for television advertising softened slightly over the last 6 months, continued strong audience delivery has enabled TVNZ to maintain a leading share of TV advertising revenue for the period. TVNZ’s year on year decline in profit is primarily due to increased online competition from global players and the one-off sale of some assets last year,” says Kenrick. 

TVNZ OnDemand online registrations exceeded 950,000 following a major expansion of online content, features and devices rolled out in the six months.  This growth has continued in the second half of the year – with the 1 million registered viewer milestone achieved in February 2016.

Kiwi Premium Advertising Exchange (KPEX) – the local advertising exchange service joint venture with Fairfax Media, MediaWorks and NZME was launched in November 2015. Pooling advertising inventories on KPEX is providing a simple and effective way for agencies and clients to reach NZ audiences online, in brand-safe environments alongside New Zealand’s leading local news, lifestyle and entertainment content.

Points to note for the six month period include:

•             TVNZ’s peak time TV audience share grew 2 percent year on year to 45.3 percent.

•             New Zealand’s total market for television advertising revenue decreased 1.7 percent - TVNZ maintained TV revenue market share above 60 percent.

•             TVNZ secured major content rights from Fox as well as a number of sporting rights including PGA/LPGA and European Tour Golf, NFL, AFL, EPL, Wimbledon and Formula E.

•             ONE News Now streams increased threefold when compared to the same period in FY15.

Kenrick said in the back half of the financial year priorities include the launch of DUKE – TVNZ’s new on-air and online simulcast entertainment channel to be launched 20 March 2016; a nationwide study of New Zealander’s views on national identity to ensure ONE News stays focused on the stories that matter most to viewers; growing share of TV audiences and advertising revenues; and continued focus on costs to ensure TVNZ meets its full year targets for FY16.

 

 

 

Financial Highlights Summary – Six months ended

 

 

31/12/15

 

31/12/14

 

000’s

 

000’s

 

 

 

 

Operating Revenue

179,349

 

195,556

Advertising revenue

168,081

 

171,688

 

 

 

 

Operating Expenses

(157,837)

 

(164,341)

 

 

 

 

Operating Earnings

21,512

 

31,215

 

 

 

 

Interest Expense

(45)

 

(48)

 

 

 

 

Financial Instruments/foreign currency   gains/(losses)

(3,557)

 

(3,641)

 

 

 

 

Income Tax expense

(5,204)

 

(7,720)

 

 

 

 

After Tax Profit

12,706

 

19,806

 

 

 

 

Operating Cash Flow

27,890

 

40,792

 

 

 

 

 

 

 

ENDS