TVNZ profit jumps by $12m
Television New Zealand will pay an $11.3 million dividend to its government shareholder after the state-owned enterprise's profit jumped from $2.1m in 2011 to $14.2m for the 2012 financial year.
The result, announced by new chief executive Kevin Kenrick, bucked the media industry trend as advertising revenues increased by $9m to $313.7m and overall revenue improved slightly to $381.8m.
TVNZ also trumpeted an increase in its television market share by 0.6 per cent to 62.2 per cent and claimed it had secured 92 per cent of the total TV market growth for the year ended June 30.
TVNZ's stable includes TV One, TV2, the U youth channel, and Heartland on Sky. It is also a partner in Sky's yet-to-be-unveiled discount pay-TV service, Igloo.
The company dropped its TVNZ 7 channel in June after the non-advertising channel's government funding expired.
Despite the revenue increases, the company said underlying earnings were down 12.2 per cent on the year before, to $27.9m, reflecting the increased cost of overseas television programming.
Operating expenses were up $7.8m to $353.9m.
The $14.2m of after-tax profit included $7.7m in impairments and “remediation costs” associated with the analogue transmission switch-off.
Last year's small profit was also hit by a $17m writedown in the ill-fated TiVo service.
However, TVNZ said the dividend it paid the government was based on the company's underlying performance, before any impairment charges.
Last year, TVNZ made $2.1m and paid a $13.8m dividend.
TVNZ will not publish its full accounts until they are tabled in Parliament next month.
Kenrick called the result “satisfactory” and said TVNZ was “embracing the need to adapt and keep pace with media industry changes”.
TVNZ's online OnDemand service was being extended to devices such as the Apple iPad, Samsung Galaxy tablet and Samsung Smart TVs “once testing is complete”.
- © Fairfax NZ News