TVNZ ‘set up well’ after result

LOWER spending on content and costsaving measures have helped TVNZ more than double its halfyear profit.

The stateowned media company has reported a net profit of $33.9 million for the six months to December 31, up $18.2 million, or 115%, on the same prior period.

Total revenue was down 1.9%, or $3.3 million, to $175.7 million after the company’s advertising revenue fell from $170 million to $163.8 million due to lower demand off the back of Covid19.

However, its operational expenses also dropped, largely due to lower spending on content as a result of Covid19’s effects on supply chains.

TVNZ’s expenses were down 21.5%, or $32.8 million, to $119.9 million, $24.2 million of the decrease attributed to lower content spending.

It also cut $8.6 million in costs across the business.

Earnings before interest, tax, depreciation, amortisation and fair value adjustments were $47 million, up from $15.8 million.

TVNZ chief executive Kevin Kenrick said it was refocusing and recovering after Covid19.

‘‘Halfway through this financial year, our financial position has recovered strongly and the business is set up well to accelerate our digital transformation plans and reimagine the future of TV.’’

Mr Kenrick said TVNZ generated $48.2 million cashflow from operating activities for the six months and was confident it could fund itself without accessing capital from the share subscription facility negotiated last year.

Based on the ‘‘improved outlook’’, the TVNZ board had decided to repay the wage subsidy of $4.9 million it received last year, he said.

Mr Kenrick said the standout programme performer in the first six months had been local news and current affairs shows, which attracted record audiences. — The New Zealand Herald