TVNZ profit slashed

By Phil Boeyen, ShareChat Business News Editor

Thursday 28th March 2002

State broadcaster TVNZ has reported a 40% slump in first half net profit after tax to $14.5 million.

The result is $9.9 million lower than the interim result the previous year. The company's television and media business contributed $5.2 million while the net profit after taxation for the transmission business was $9.2 million.

TVNZ boss, Rick Ellis, describes the result as a creditable performance in the challenging trading environment with the company successfully maintaining its share of the free to air television advertising spend.

"Soft advertising market conditions saw advertising revenue down $3.2 million (2%), which, while disappointing, is significantly better than many international broadcasters.

"In its 2002 Global Media report, ABN AMRO stated that 2001 was the worst year for advertising in 50 years, with global advertising estimated to have declined by 5.7%.

Mr Ellis says the reduction in television advertising revenue was partially offset by an increase in other television related revenues, particularly royalties and merchandising activity.

The company says TVNZ Australia and TVNZ Satellite Services turned in strong performances but revenue at its transmission subsidiary BCL fell due to the renegotiation of several major transmission contracts.

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