AUCKLAND, Today: TVNZ has reported stable operating earnings, as well as “continued market leadership of TV audiences” off the back of strengthened local content performance and accelerated TVNZ OnDemand growth for the financial year ending 30 June 2019.
The company delivered EBITDAF of $24.6 million consistent with the previous year. Total revenue declined $7.8 million (-2.5%) to $310.7 million, with single digit declines in TV advertising partially offset by double digit growth in online advertising revenue.
Operating expenditure improved by $7.8 million (2.7%) to $286.1 million due to a year-on-year reduction in programming costs.
Net profit after tax was $2.9 million, down $2.2 million (-44%) on the prior year due to a $2.9 million unfavourable movement in unrealised foreign exchange.
TVNZ ceo Kevin Kenrick says the company’s financial results are reflective of challenging market conditions.
“In the context of this environment, stable year-on-year earnings is a pleasing result.
“The standouts are the stellar ratings of our local news and entertainment content, and growth in TVNZ OnDemand.”
“The standout achievements for the year have been the stellar ratings performance of our local news and entertainment content, and the growth in TVNZ OnDemand.”
TVNZ claims it screened 19 of the top 20 TV programmes for the year.
TVNZ OnDemand achieved 80% year on year growth in viewership to record 184 million video streams for the period and delivered year-on-year increases in weekly audience reach (+38%) and advertising revenue (+31%).
The TVNZ board has agreed with the shareholder to cease dividend payments due to increased investment in local content and digital capabilities. TVNZ has sufficient cash on hand to fund the planned transformation over the next three years.
“TVNZ’s competition has shifted from local to global and our future success will be less reliant on being the best in market vs. delivering content services that compare favourably with the global giants,” Kenrick said.
FY2019 SNAPSHOT
Earnings: EBITDAF of $24.6 million, consistent with FY18
Net profit: $2.9 million, down 2.2% or 43.5% year on year
Total revenue: $310.7 million, down 2.5% or $7.8 million year on year
Costs: $286.1 million, down 2.7%
TVNZ site mute
At press time, these results were not yet available on the TVNZ site (www.tvnz.co.nz)
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