Television New Zealand posted a 6.2 per cent decline in first-half earnings as advertising revenue fell faster than operating costs, which the state-owned broadcaster said was a creditable performance in a declining TV market.
Earnings before interest, tax, depreciation, amortisation and changes in the value of financial instruments fell to $26.7 million from $28.5m a year earlier, the Auckland-based company said in a statement. Advertising revenue fell 5 per cent, or about $8.7m, to $159m while operating expenses dropped 5.4 per cent, or $8.1m, to $142m.
Chief executive Kevin Kenrick said TVNZ had outperformed the broader TV market by increasing its audience and revenue share in what he said was a period of unprecedented change for the media industry. New Zealand's television advertising revenue market fell by 8.4 percent in the first half.
The first-half performance gave him confidence TVNZ would achieve the full-year target set out in its 2017 statement of performance expectations, which the broadcaster's board is required to provide for its government shareholders.
That document shows an earnings before interest and tax target for the year ending June 30 of $9m, almost half of the $22.6m it achieved in 2016. It didn't give a projection for total shareholder returns for the 2017 year, having recorded a 31 per cent decline last year. Its return on programme investment, or operating margin, is projected to slip to 40.7 per cent from 42.4 per cent.
