TVNZ profit advances 50pc to $29m

By SIMON HENDERY, media writer

TVNZ chairman Craig Boyce set the stage yesterday by telling press conference journalists he would outline highlights from the company's annual result, answer their questions, "and try to remain cheerful".

Any difficulty Boyce may have felt in maintaining a happy face had more to do with political flak - never far from the state-owned broadcaster - than the top-line financials he presented yesterday.

Boyce said TVNZ could be "justifiably proud" of its $29.1 million after-tax profit for the year to the end of June, which was up 50 per cent on last year.

Total group revenue increased from $477 million to $492 million.

Profit from the television side of the business rose from $5.1 million to $17.9 million as a strong advertising market pushed TVNZ's advertising revenue to a record $305 million, up from $286 million last year.

The transmission side of the business reported flat revenue of $95.2 million and a drop in profit from $14.2 million to $11.2 million, a fall the company attributed to a change of focus for that part of the business as it launched its broadband wireless service.

The company will pay the Government a $7.8 million dividend for the year.

Sitting beside Boyce, TVNZ chief executive Ian Fraser said that in the face of the result "it's difficult to be anything but cheerful".

However, the political flak continued yesterday. National broadcasting spokeswoman Katherine Rich criticised the level of profit growth from the television side of the business despite the jump in advertising revenue.

"I'm concerned that TVNZ will be forced to go cap in hand to the Government for more funding, especially with big losses predicted over the rugby World Cup, although there's no mention of that in this year's annual report," she said.

Last year, TVNZ wrote off $5.2 million in cup broadcast rights after New Zealand lost its hosting rights.

Fraser said TVNZ would lose money on the cup, but declined to be specific. The strong advertising market meant it was not getting significant cup-related leverage from advertisers.

* The delayed split of TVNZ and its transmission business would occur on December 31, Broadcasting Minister Steve Maharey said yesterday.

The transmission business, incorporating Broadcast Communications Ltd and TVNZ (Australia), will become Transmission Holdings Ltd, a state-owned enterprise.