State-owned broadcaster Television New Zealand paid a smaller-than-expected dividend to the Government as more-expensive foreign programming eroded the company's underlying earnings.
The broadcaster paid a dividend of $11.3 million in the 12 months ended June 30, down from $13.8 million last year and smaller than the $12.8 million forecast in its statement of corporate intent. Underlying earnings shrank 12 per cent to $27.9 million, slightly ahead of the $24 million forecast.
Net profit surged to $14.2 million from $2.1 million after the impact of the ill-fated TiVo venture washed through the broadcaster's books, just ahead of the $14.1 million forecast in the statement of intent.
"Increases in the cost of television programming, particularly overseas programming, were the primary driver of lower underlying earnings," the company said in a statement.
The broadcaster's operating revenue grew 1 per cent in the year to $381.8 million, with a 3 per cent lift in advertising sales to $313.7 million.
