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TVNZ reports profit of $12.7 million and dividend payment of $13.4 million for the 2016 financial year


TVNZ has reported a net profit after tax of $12.7 million for the financial year ending June 2016. Profit was in line with the financial targets set out in the Statement of Performance Expectations after adjusting for unrealised foreign exchange losses.

TVNZ CEO, Kevin Kenrick says: “The performance highlight of the year was TVNZ’s strengthened share of TV audiences. Audience share reached a five year high powered by market leading news, current affairs and local entertainment programmes. Off the back of this audience improvement TV advertising revenue share strengthened from 60.8% to 61.3%.”

Overall revenue declined $23.9 million (6.8%) due to year on year declines in market demand for TV advertising, Government funding, event broadcast linking services, as well as the one-off gain on sale of the TVNZ Archive assets in FY2015.

Operating expenses reduced by 3.3% year on year to $303.3 million primarily due to reduced programme amortisation and labour costs.

Kevin Kenrick says “We’re seeing mobile devices driving huge growth in online video consumption with TVNZ OnDemandand ONE News Now delivering an average of 10 million video streams per month.

“To compete more effectively with global scale online players, TVNZ entered into a joint venture with Fairfax Media, MediaWorks and NZME to develop and launch KPEX - a local online advertising exchange.

“The other major launch initiative for the year was DUKE – TVNZ’s new on-air and online entertainment channel.”

The 2016 financial year signified the transition of TVNZ to a wholly commercially funded business with the end of the Pacific Broadcast Service – the last remaining form of direct Government funding.

2016 also brings to a close the multi-year refurbishment of TVNZ’s Auckland building at 100 Victoria Street West. The completion of this major capital project signifies the resumption of full dividend payments and TVNZ will return a dividend of $13.4 million to the Crown for FY2016.

 

 

Financial Highlights Summary - Year Ended 30 June 2016

 

 

FY2016

 

FY2015

 

 

$'000

 

$'000

 

 

 

 

 

Revenue and income

   326,075

 

   349,992

 

Advertising revenue

   303,902

 

   314,192

 

 

 

 

 

Operating expenses

  (303,326)

 

  (313,676)

 

 

 

 

 

Operating earnings

     22,749

 

     36,316

 

 

 

 

 

Interest expense

           (90)

 

           (92)

 

 

 

 

 

Asset impairment

              0

 

         (486)

 

 

 

 

 

Financial Instruments

      (4,790)

 

          912

 

 

 

 

 

Share of results of associates

           (38)

 

              0

 

 

 

 

 

Income Tax

      (5,144)

 

      (8,535)

 

 

 

 

 

Net Profit after tax

     12,687

 

     28,115

 

 

 

 

 

Dividend

     13,370

 

       8,252

 

 

 

 

 

 

 

 

 

 

 

ENDS