Primed and ready to take off

SYDNEY - Prime Television is looking to enhance its profile in New Zealand after finding the advertising market has grown strongly.

Prime said New Zealand advertising revenue rose 48 per cent to A$11.17 million ($12.30 million) in the six months to December and earnings before interest and tax improved to a loss of A$954,000 from a loss of A$3.06 million in the previous first half.

Meanwhile, the regional broadcaster said its Australian operations were poised for a strong second half after posting a slight rise in interim profit.

Prime reported a net profit of A$11.36 million for the six months to December 31, 2004, up 5.9 per cent from the previous first half.

The company said its Australian earnings in the first half of 2004/05 were constrained because of costs associated with the Athens Olympics and softer ratings.

"In the context of a continuing firm advertising market and an improved ratings performance, the Australian operations are poised to deliver a strong performance in the second half," Prime said.

Prime is focusing on cost control, although the introduction of digital TV over the next few reporting seasons will add to its costs.

The profit was struck on advertising revenue of A$94.1 million, which was 9.8 per cent higher than the previous first half.

Earnings growth trailed revenue growth because of the Olympic-associated costs.

Ad revenue in Australia rose 6.1 per cent to A$82.96 million, although earnings before interest and tax fell 10 per cent.

The company declared a fully franked interim dividend of 5Ac, up from 4Ac previously.

"This is a solid result for the company and we are particularly pleased to note the continuing significant improvement in our New Zealand operations," Prime chairman Paul Ramsay said.

"We look forward with confidence to the remainder of the year."

- AAP