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TVNZ announces ‘small profit’ and upgrade of facilities

New Zealand’s state-owned broadcaster TVNZ has announced a small increase in profits for the latest financial year along with plans to refurbish its facilities and to upgrade its on-line technology.

Although the after-tax profit to 30 June 2013 was only NZ$0.4 million above their forecasts, Chief Executive Kevin Kenrick said the result was satisfactory in a year of looking at costs, coupled with a slower than expected advertising market.

Compared with the previous year, total operating revenue was down, in part reflecting the absence of government funding formerly applied to public service channel TVNZ 7.

During the year, TVNZ completed the sale of its Avalon studios complex in Wellington and closed its Teletext service as part of a program to discontinue non-core activities.

TVNZ scored a clean sweep in the annual Top 20 TV program lists – all 20 of the country’s 20 most popular shows for the year came from TVNZ.

Mr Kenrick said the standout performance for the year was TVNZ Ondemand and the 21% growth in digital media revenue.

“Consumer demand for greater viewing choice and flexibility has been the driver for this, boosted by the launch of our Ondemand app for Apple devices in February, which immediately translated into a step change in viewership,” he said.

Meanwhile, TVNZ has announced it will refurbish its central Auckland facilities and upgrade its online technology, following the Board’s decision to sell a second package of land and buildings to SKYCITY for NZ$10.6 million (US$8.3 million).

While the majority of staff will move to temporary accommodation for up to two years, TVNZ’s News and Current affairs and core technology support staff will remain at their current premises to ensure business continuity.