Story image

Television New Zealand 1st-half profit drops 5% on weaker ad revenue

02 Mar 15

Television New Zealand, the state-owned broadcaster, posted a drop in first-half profit of about 5 percent as advertising revenue weakened and costs rose.

Profit fell to $19.8 million in the six months ended Dec. 31, from 20.8 million a year earlier, the Auckland-based company said in a statement. Advertising sales, which make up 88 percent of the TV company's operating revenue, fell to $171.9 million from $177 million.

Total sales dropped 3 percent to $195.6 million, while operating expenses climbed to $164.3 million from $163.96 million.

TVNZ dominates free-to-air broadcasting in New Zealand, and had all 20 of the top 20 most watched shows in the first half. In the first-half, its market share widened to 61.6 percent from 60.9 percent, it said. Still, growth in digital media and an increased shares of TV ad sales were enough to offset the impact of weaker advertising and the timing of some costs, leading to the decline in earnings.

"In common with other media groups, TVNZ's advertising revenue was down following softer demand in the six months," it said.

The company said it is on track to achieve its full-year financial targets, which are for operating revenue of $358.8 million and comprehensive income of $23.4 million.

The broadcaster's ONE News show was the nation's most-watched TV programme, drawing an average audience of more than 650,000 viewers. Its Sunday current affairs show had an average audience of more than 600,000, it said.

The first-half results included an unrealised net foreign exchange loss of $3.6 million. The first-half of the previous year had a similar sized-one-time charge of $3.2 million as an impairment against property, plant and equipment.

Soul Machines' virtual humans go mainstream
An Auckland AI firm renowned for its work creating ‘digital humans’ is now unleashing its creativity to the wider market.
Hands-on review: The Logitech R500 laser presentation remote
With a clever ergonomic design, you’ll never have to glance at the device, unless you deliberately look to use the built-in laser pointer to emphasise your presentation.
GCSB welcomes Inspector-General's report on intelligence warrants
Intelligence warrants can include surveillance, private communications interception, searches of physical places and things, and the seizure of communications, information and things.
Lightning Lab accelerator delves into tourism
“It’s great to see the tourism sector taking a proactive and collaborative approach to innovation."
Apax Partners wins bidding war for Trade Me buyout
“We’re confident Trade Me would have a successful standalone future," says Trade Me chairman David Kirk
Verifi takes spot in Deloitte Asia Pacific Fast 500
"An increasing amount of companies captured by New Zealand’s Anti-Money laundering legislation are realising that an electronic identity verification solution can streamline their customer onboarding."
Homegrown stress relief app to be launched next year
Researchers at the University of Auckland and an Auckland-based creative agency are working together to create a ‘world first’ app that they believe will help with stress relief.
How blockchain will impact NZ’s economy
Distributed ledgers and blockchain are anticipated to provide a positive uplift to New Zealand’s economy.