TVNZ could consider Stuff stake

AUCKLAND: TVNZ is not ruling out looking at buying a stake in Stuff or merging with RNZ.

However, neither TVNZ board chairwoman Dame Therese Walsh nor TVNZ chief executive Kevin Kenrick talked up either possibility when they appeared before Parliament’s economic development, science and innovation committee yesterday.

Australian television network Nine Entertainment and newspaper publisher Fairfax Media announced plans to merge in November last year, and Nine chief executive Hugh Marks has since confirmed that a formal sale process for Stuff would begin in the next few months.

Stuff assets include the stuff.co.nz website, digital platform Neighbourly, and newspapers including The Dominion Post, The Press, and the Sunday StarTimes.

The company, which employs about 1000 staff, has been grappling with the declining trajectory of print advertising. Its earnings before interest, tax, depreciation and amortisation shrank 27% to $40.5 million in the year ended June 2018.

An independent report by Grant Samuel valued Stuff at $115 million to $135 million.

TVNZ delivered a net profit of $5.1 million in the year to June 2018, up $3.7 million on the previous year.

At the committee hearing, National MP Melissa Lee asked TVNZ bosses if they were interested in buying any of Stuff’s assets.

Mr Kenrick said the market was dynamic, and TVNZ had a keen interest on seeing what would happen.

‘‘What we you have to do is make sure you preserve and maintain options. We have ongoing partnerships with multiple different players,’’ Mr Kenrick said.

‘‘So we don’t rule anything in. We don’t rule anything out.’’

He said it was more important for TVNZ to concentrate on its own performance, which could ‘‘put us in a favourable position if and when an opportunity makes sense for us’’.

Stuff and TVNZ already have a partnership since 2016 to share One News video clips on Stuff. Fairfax and TVNZ share the advertising revenue from video content.

Asked about the possibility of a future merger of TVNZ and Radio NZ, Mr Kenrick said he would not rule that out either.

‘‘It’s like anything in this market.

‘‘It’s so dynamic. It’s changing so quickly.

‘‘You wouldn’t rule things out.’’

Walsh said the board kept a ‘‘really open mind on all of those things’’, including with public or private media.

Dame Therese said the financial year to June 2018 was the first time in five years that revenue did not go down.

Mr Kenrick said part of TVNZ’s recent success was due to investing in quality local content, including news.

Dame Therese named Wellington Paranormal, programmes with a Maori theme and Anika Moa Unleashed as shows that had done particularly well.

The success gave TVNZ the headroom to invest in digital platforms’ future, she said. — NZME

❛ So we don’t rule anything in. We don’t rule anything out TVNZ CEO Kevin Kenrick