TVNZ pleased with figures

By LOUISA CLEAVE

TVNZ put a brave face on its full-year result yesterday, despite reporting plunging profits at its key transmission and television businesses.

"TVNZ has performed significantly better than many other international broadcasters over the past year with a 1 per cent year on year increase in advertising revenue, which is very pleasing ... where some broadcasters have dropped by 4 or 5 per cent," said TVNZ chairman Ross Armstrong.

The state-owned broadcaster's group revenue fell $3.8 million to $477.3 million and net profit slumped by a third to $19.3 million, compared with nearly $30 million in the previous year.

Profit before interest, tax and non-recurring items was $43.8 million.

The Government received a much reduced dividend of $8.6 million compared with $17.1 million the previous year.

After significant falls in advertising in the first half of the year, the return of fast-moving consumer goods and big brand advertising strengthened revenue in the second half of the year to bring advertising revenue to $285.7 million, compared with $284.6 million the previous year.

BCL's revenue of $114.5 million was down $18.9 million on the previous year, which the company said was largely due to renegotiated analogue contracts with Sky Television and TVNZ. The net profit of $14.2 million was a $7.9 million decline on the previous year.

In 1990, the broadcasting of TVNZ signals provided 90 per cent of the transmission business, but now 70 per cent comes from companies outside the group, said chief financial officer Rodney Parker.

BCL had successfully completed new wireless broadband trials in Taranaki and Southland. BCL was charging TVNZ 15 per cent less for transmission since the companies renegotiated their contract "at arm's length" 18 months ago.

The television business contributed a $5.1 million net profit, which was down $2.7 million on the previous year, mainly due to non-recurring items such as a $5.2 million writedown on broadcast rights to the Rugby World Cup.

Armstrong said TVNZ Australia made a significant contribution to the result with several large contracts, including the establishment of a state of the art maritime communications network.

TVNZ International, one of Armstrong's initiatives since taking the helm, was also singled out for praise for a contract to provide studio and transmission facilities for community radio stations in East Timor.