TVNZ CEO Kevin Kenrick in the refurbished building on Victoria Street. Photo/Greg Bowker
TVNZ CEO Kevin Kenrick in the refurbished building on Victoria Street. Photo/Greg Bowker
State-owned broadcaster TVNZ has lifted first-half earnings by 17.4 per cent off the back of increased advertising revenue and lower expenses.
For the six months ending December, the company posted earnings before interest, tax, depreciation and amortisation (Ebitda) of $30.2 million, up $4.5m in the same period in the previous year.
This is already more than double its full-year 2018 target of $14.7m.
Off the back of this, TVNZ announced a dividend for the previous financial year of $9m for shareholders.
Chief executive Kevin Kenrick said the company had made a positive start to the year.
"We've achieved strong TV and OnDemand audience reach, and improved operational earnings through modest revenue growth and tightly managed costs," he said.
The company was on track to exceed its full-year target for 2018 it said.
Total revenue was up 1 per cent year on year to $170.4m, while operational expenses decreased by 2 per cent or $2.8m following an organisational restructure the previous year.
"In recent years TVNZ has focused on growing digital revenue to offset TV revenue declines," Kenrick said.
"Against this back drop, it's encouraging for the business to achieve year-on-year growth in both TV and digital advertising revenue for the half year."
TVNZ's audience share lifted to a five-year high, with the company screening 18 of the top 20 most-watched shows for the six months, according to Kenrick.
Video streams on its TVNZ OnDemand platform increased to 42.2 million, up 5.9 million or 16 per cent on the same period last year.
Recent developments included the launch of live streaming of all TVNZ channels, a significant expansion of its content offering and extended accessibility through Chromecast, Apple TV and Vodafone TV.
Hilary Barry and Jeremy Wells present the new series of Seven Sharp on TVNZ. Photo/Supplied
"The pulling power of TVNZ content is the primary driver of business performance," said Kenrick.
"[Our] local and international content line up reaches more than two million people every day.
"TVNZ plans to build on its current business momentum by growing its share of TV, accelerating growth of OnDemand and is actively exploring adjacent market opportunities to fund its future growth," he said.
Over time the company will focus its content investment more towards local content.
"Original content is TVNZ's strategic focus and competitive advantage. It's our sustainable point of difference in a market increasingly contested by global-scale international players."
