TVNZ boosts profits, cuts costs
Profits for New Zealand’s national public broadcaster TVNZ rose by 25 per cent in the last financial year.
Chief Executive Kevin Kenrick announced a net profit after tax of US$15.2 million (NZ$18.1 million).
Although total revenue fell slightly by 0.4 per cent to US$302 million, this was more than offset by cuts in operating expenses of 3.0 per cent to US$273 million. Underlying earnings increased 7.5 per cent to US$22.8 million, after excluding gains on the sale of property, plant and equipment.
Mr Kenrick said growth in digital media was the standout performance for the year.
“TVNZ On-demand streams were up seven per cent for the year and now average more than one million per week,” he said. “An increased focus on publishing more – and faster – news online boosted onenews.co.nz video streams by 63per cent.”
Off the back of strong audience growth, online advertising revenue was up 30 per cent.
Mr Kenrick said viewers clearly welcomed TVNZ’s increasingly integrated approach to on-air and online content, with the multi-screen coverage of the America’s Cup and FIFA World Cup events both showcasing examples of this growing trend.
As part of a tighter focus on its core on-air and online investments, TVNZ had divested surplus land and buildings during the year and relinquished its stake in both Hybrid Television Services and Igloo by selling its minority shareholding back to Hybrid and SKY TV respectively. Shortly after the financial year-end, the company announced the sale of the TVNZ Archive to the Crown.
Mr Kenrick said the company’s focus was now on creating and sourcing the most compelling content, expanding online distribution and delivering superior value to advertisers. The recent exit of non-core assets had freed up capital to invest in technology infrastructure to fast track online growth and to refurbish its Auckland building to meet future accommodation needs in one central location.
“Content continues to be at the heart of the business and our future slate of new and returning local and international programming is very strong,” he added.