TVNZ ad revenue takes a hit

TVNZ is reporting a fall in advertising revenue of 3.6 per cent to $186.7 million for the six months to December, compared with record levels a year earlier.

Increased revenue from TV2 partially offset the reductions from TV One in the latest period, the company said today.

Chairman Craig Boyce said the levelling off in advertising revenue would undoubtedly mean a tight focus on costs at TVNZ.

"A reduction in revenue combined with an immensely challenging competitive environment will require us to be on our toes," he said.

TVNZ reported a net surplus after tax of $23.3 million for the half year, but said the result was not directly comparable to the $30.7 million for the same period a year ago.

That was because of the impact of a one-off accounting adjustment that changed the period in which programme costs were recognised.

Mr Boyce said the result was satisfactory in the context of a slowing economic environment.

"This represents a solid outcome given a reduction in revenue resulting from the closure of TVNZ's satellite services business and a decline in advertising revenue."

Programming highlights for the half year included TV One's extensive election coverage, the extraordinary ratings and audience share achieved for Desperate Housewives on TV2, and Frontier of Dreams -- the first comprehensive television history of New Zealand.

The company said that during the period TVNZ broadcast all but two of the top 50 programmes watched by New Zealanders of all ages.

- NZPA