TVNZ has reported EBITDAF of $55.8 million for the six months to 31 December 2020, $29.5 million (112 percent) above the prior year.
Total revenue was down $3.3 million (1.9 percent) to $175.7 million reflecting the impact of Covid-19 lockdown restrictions on demand for advertising in the early months of the period. Revenue has steadily improved as the year has progressed, driven by improved share of TV market revenue and continued strong growth in digital advertising.
TVNZ reported a FY2021 interim Net Profit After Tax of $33.9 million, up $18.2 million (115 percent) year on year, after accounting for a $13.2 million tax expense.
“I’m proud of the way the TVNZ team has responded to challenges confronting the industry at the start of this financial year. Many New Zealanders took the opportunity to trial TVNZ content while locked down at home and its pleasing to see so many of them become regular viewers of our news and entertainment shows. 2.8 million people are watching our TV channels each week and TVNZ OnDemand is attracting a record weekly audience of 473,400.*
TVNZ adopted a three phased response to the impacts of Covid-19 on the business – refocus, recover, reimagine. 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,” says Kevin Kenrick, Chief Executive at TVNZ.
The state-owned television network generated $48.2 million cash flow from operating activities for the six month period and is confident it has sufficient cash on hand to fund itself without needing to access capital from the Share Subscription facility negotiated last year.
Local driving demand
In the statement issued today, TVNZ says that the standout performer in driving eyeballs in the first six months was the line-up of local news and current affairs shows. It says local news programmes are attracting record audiences and gaining the trust of Kiwis.
The second half of the year will TVNZ continue this commitment to news leadership; live sport action including the PRADA America’s Cup, International T20 and Super Smash cricket and hopefully the Tokyo Olympic and Paralympic Games.
TVNZ is on track to significantly exceed its financial year 2021 Statement of Performance Expectations.