Mediaworks pays for ‘perfect storm’
Mediaworks bosses are distancing themselves from the heavy financial loss reported yesterday, saying it’s a reflection of past troubles and that things are back on track.
They were referring - although not by name – to former chief executive Mark Weldon’s troubled reign which saw news and current affairs programmes cut and a string of high-profile staff departures including popular broadcasters John Campbell, Hilary Barry, the 3D team and former TV3 head of News Mark Jennings.
Chief executive Michael Anderson described the Weldon era as a perfect storm.
Weldon, a former NZX chief executive, left Mediaworks in May 2016.
Accounts posted with the Companies Office yesterday show the media firm made a loss of $14.85 million for the year to December 2016.
The result included a large provision (many millions) for executive incentives – including Weldon’s – but Anderson would not discuss who got what. He said the executive incentive scheme was no longer in place.
As a foreign-owned business, Mediaworks must file accounts annually to the Companies Office, but what is made public is discretionary.
This makes it hard to get a clear picture of the company’s track record.
Accounts for the 15 months from October 2014 to December 31, 2015 – provided on Tuesday – showed a $7.04m loss.
But the company’s own comparison said it effectively made a $14.5m loss in 2015: when the figures were condensed into 12 months rather than 15.
‘‘It’s not a great set of results,’’ chief financial officer Ciara Mcguigan said of the $14.85m loss. ’’[But] it’s dog years away from where we are now ... [it’s] very much a reflection of the past.’’
Neither Anderson or Mcguigan would put a value on the cost of Weldon’s tenure or say how many staff left during that time.
Anderson said the result did not reflect the Mediaworks of today, which had a new executive team, strong performing radio stations and a solid television mix.
He stressed the commitment to New
"It's not a great set of results, [but] it's dog years away from where we are now." Mediaworks chief financial officer Ciara Mcguigan
Zealand content, saying no local TV programmes would be cut.
The most popular shows shown on Three in 2016, among the coveted 25- to 54-year-old age group, were 7 Days, The Block NZ, All Star Family Feud, The Graham Norton Show, and The Bachelor NZ, Mediaworks said.
News and entertainment show The Project – which has attracted some criticism for its lighthearted approach – was singled out with Anderson saying ‘‘it’s working’’.
It was paying for itself and provided a link between the more serious 6pm news bulletin and the 7.30pm move into reality and entertainment shows.
‘‘[It provides] a consistency across prime time so audience and advertisers know what to expect.’’
The 5.30pm to 8.30pm slot on accounts for 88 per cent of Mediaworks’ television revenue.
The new AM Show was also lauded, with Anderson saying it had won that ratings war several times in recent days.
He said Mediaworks’ radio business continued to perform well but that freeto-air television was under pressure.
Acknowledging the turbulent media market, Anderson said he was confident with the plans Mediaworks had in place.
Wider media machinations – for example a steeper decline in free-to-air television revenue, or the entrance of Amazon TV to the New Zealand market – could play out but he said the company would adapt.
He said there were no live or planned discussions to merge with other media companies but said it would be ‘‘very silly to rule anything out’’.
Fairfax and NZME are in the process of appealing a Commerce Commission decision to reject a planned merger, and Mediaworks has been touted as a potential partner for Fairfax due to its profitable radio stations.