TVNZ profit jumps to over $30m

Television New Zealand yesterday revealed an 11 per cent rise in half-year profit but warned that strong advertising revenue growth over the past three years was slowing.

The state-owned network's profit after tax for the six months to last December 31 rose to $30.7 million, from $27.6 million in the same period of 2003.

Revenue from television business rose to $237.2 million from $219.1 million, boosted by a $7.8 million increase in advertising revenue and $6.1 million extra in charter money from the state.

Despite record half-year advertising revenue of $193.6 million, a 4.2 per cent increase, chairman Craig Boyce said in the interim report there were signs the advertising growth of the past three years was levelling off. 

He also said TVNZ faced a more competitive environment now than at any time since TV3 went to air, especially in the 6pm to 7.30pm news and current affairs slot.

In the 7pm weekday slot, TVNZ's Close Up faces competition from TV3's Campbell Live and Paul Holmes on Prime.

"TVNZ is performing strongly in the face of this challenge and we are satisfied that we are holding our audience."

Mr Boyce also said TVNZ and a number of other broadcasters were discussing the feasibility of jointly operating and managing a free-to-air digital system.

The state broadcaster's total operating revenue fell to $245 million from $277.2 million, largely due to a loss of revenue when the Transmission Holdings business was separated and became a state-owned enterprise in its own right last December, and the shutting-down of TVNZ Satellite Services in April last year.

Operating expenses were cut to $201.7 million from $233.8 million, with payments to suppliers and staff falling to $181.6 million from $208.8 million.

TVNZ's charter-specific Government funding for this year totals $25.6 million, including $11.4 million that has been reinvested from last year's $37.6 million annual dividend.