TVNZ pays Govenment $84.5 million in dividends

After getting a $11 million boost to make more local programmes Television New Zealand will end up paying the Government $84.5 million in dividends this year.

TVNZ's annual report said this included a $70 million special dividend paid in June this year following a review of the crown company's capital structure.

TVNZ has been targeted in the past for special dividends because Treasury says its debt levels are out of line with normal commercial practice.

The special dividend follows the Government last year paying back $11.4 million in dividends to help make more local programmes.

A final dividend of $14.5 million was also declared for the 2005/06 year and will be paid in September.

The report showed TVNZ posting a $13.3 million surplus for the year.

This was an increase of $7 million over the previous year despite advertising revenue being down to $334.8 million in comparison to the previous year's record of $344.1 million.

The fall in advertising was the first drop in five years and TVNZ said the outlook was uncertain due the slowing economy and negative outlook for retail sales.

Government direct funding was also lower leading to operating revenues reducing by 6.2 per cent ($26.9 million).

TVNZ's new chief executive Rick Ellis and new chairman John Anderson were addressing "any outstanding issues surrounding the events of last year and to put those behind us".

In recent years TVNZ has been in the news as well as reporting it.

Former chief executive Ian Fraser had a public falling out with the board which was the subject of two parliamentary inquiries.

Presenters' salaries were also in the news as were reports of TV3 gaining market share on TVNZ.

Mr Ellis said he was pleased with TVNZ performance, particularly the success of locally made programmes.

"Statistics compiled at the end of financial year 2006 show that 16 of the top 20 programmes watched by viewers aged five years and over across all channels were locally made programmes shown on either TV One or TV2," Mr Ellis said.

Top of the list was Dancing with the Stars, followed by a one-off tribute to David Lange after his death last year.

The highest rating show in the past five years across all channels in the 18-39 bracket was Desperate Housewives.

The annual report cast a rosy glow over changes to TVNZ's flagship news programme - One News.

After veteran news reader Judy Bailey left TVNZ, the 6pm news was relaunched with two younger news readers, Wendy Petrie and Simon Dallow, and an intensive marketing effort.

The annual report said in the three months to June 2006, One News "led in all key national demographics".

Close Up, the 7pm news show, rated "extremely well nationally, and although Auckland ratings have fluctuated, the trend has been on a rise since April".

Mr Ellis said TVNZ's future was digital and this would expand its role as a public broadcaster.

"While TV One and TV2 will remain at the core of our charter delivery, extensions to our public value will grow over time. As well as additional digital channels, the future holds exciting developments in broadcast and on-demand TV and video content through new pathways," Mr Ellis said.

- NZPA