Television New Zealand Limited
Interim results announcement – 27 February 2015
Reporting Period
Six months ended 31 December 2014
Previous Reporting Period
Six months ended 31 December 2013
Amount (000’s)
Six months ended
31 December 2014
Six months ended
31 December 2013
% change
$195,556
$201,935
3% decrease
$27,526
$28,698
4% decrease
$19,806
$20,845
5% decrease
Interim Dividend
Nil
Nil
Comments:
TVNZ Interim Result on Track
Revenue from ordinary
activities
Profit before income tax
Profit for the period
TVNZ has delivered an after tax net profit of $19.8 million for the
six months to 31 December. This puts the company on track to
achieve the full year financial targets set out in its 2015 Statement
of Intent.
Announcing the result today Chief Executive Kevin Kenrick said
the business was moving into a strong second half, leveraging
recent investments in upgrading digital technology platforms to
re-launch enhanced versions of TVNZ OnDemand and
onenews.co.nz.
Mr Kenrick said digital media properties were continuing to
perform strongly with TVNZ OnDemand video streams up 38%
year on year, hitting a record in the month of October with over 6
million streams.
Buoyed by the lift in online viewing, digital media revenue rose
34% compared with the same period in the previous year.
In common with other media groups, TVNZ’s advertising revenue
was down following softer demand in the six months. The
company’s share of television advertising revenue grew from
60.9% to 61.6%.
Television audience share also strengthened, led by News and
Current Affairs programming and peak time entertainment shows.
ONE News was the most watched programme for the period with
an average total audience of more than 650,000 viewers.
Breakfast and Seven Sharp increased audience share over the 6
months, and Sunday was the most watched current affairs show
with an average audience of more than 600,000 New Zealanders
per episode.
Gloriavale - A World Apart, My Kitchen Rules and Shortland Street
were the standout performers among entertainment shows.
TVNZ had all 20 of the top 20 most watched shows in the first half
of FY2015.
Growth in digital media and a stronger share of television
advertising revenue failed to fully offset the impact of a weak
advertising environment, and together with year on year changes
in cost phasing resulted in a drop in the after tax net profit to
$19.8 million, from $20.8 million in the corresponding period for
the previous year.
The revaluation of currency hedging held at 31 December 2014,
noted in the financial report as an unrealised net foreign
exchange loss of $3.6 million, had a negative impact due to the
strength of the NZ dollar.
Other points of note for the six month period include:





Successful delivery of ‘first & fast’ content via TVNZ
OnDemand. Ninety-five per cent of this content was
delivered within one and a half hours of each show’s first
international broadcast.
Transfer of TVNZ Archive to the Crown.
Delivery of Vote Compass for the 2014 General Election over 332,000 users registered for this internationally-used
electorate engagement survey.
Successful streaming of FIFA World Cup - over 800,000
streams delivered.
Selection of four independent production companies to
undertake outsourcing of most TVNZ Maori and Pacific
programmes commencing in the second half of the
financial year.
Mr Kenrick said a continuing focus on growing share of advertising
spend and on tightly managing costs puts the business on track to
meet its full year financial targets in June.
Contact: Megan Richards, TVNZ Corporate Affairs 021 804 123
Financial Highlights Summary – Six months ended
31/12/14
31/12/13
000’s
000’s
Operating Revenue
195,556
201,935
Advertising revenue
171,865
177,458
Operating Expenses
(164,341)
(163,955)
Operating Earnings
31,215
37,980
(48)
(198)
(3,641)
164
Impairment of property, plant and
equipment
0
(3,188)
Share of Associates results/impairment
0
(6,060)
Income Tax expense
(7,720)
(7,853)
After Tax Profit
19,806
20,845
Operating Cash Flow
40,792
33,881
Interest Expense
Financial Instruments/foreign currency
gains/(losses)