At the halfway point in the fiscal year, TVNZ had gained TV audience and advertising market share, as well as doubling its online streaming numbers, according to its half-year results.
The company reported EBITDAF (earnings before interest, taxes, depreciation, and amortization) for the six months to 31 December 2018 of $25.8 million, down $4.4 million on the same period last year and slightly ahead of plan expectations.
Total revenue is up $3.1 million to $173.5 million, driven by stable TV advertising revenue and double-digit growth in online advertising revenues.
TVNZ chief executive Kevin Kendrick says operational expenses increased $7.5 million to $147.6 million, reflecting the company's commitment to increased local content and building digital capabilities to enable future options.
“TVNZ’s focus on local and live content coupled with increased investment in its digital future has resonated with New Zealand viewers and advertisers,” he says.
TVNZ posted an interim after-tax net profit of $10.7 million, down $6.4 million – after accounting for a negative unrealized foreign exchange difference of $4.1 million versus the same period last year.
Kenrick says the TV advertising market has benefited from growing advertiser recognition of the relative value of TV in building brands and capturing the attention of New Zealand’s biggest audiences.
“TVNZ will continue to support the work of ThinkTV in promoting the benefits of today’s multi platform TV offering to New Zealand marketers,” he says.
For the half year, TVNZ recorded its highest share of TV audiences since 2010 – airing 17 out of 20 of New Zealand’s most watched programmes, a list topped once again by 1 NEWS.
Other strongly performing local shows include Wellington Paranormal, The Casketeers, Project Runway New Zealand and The Great Kiwi Bake Off.
“We’re seeing the benefits of increased investment in TVNZ OnDemand. Audience scale has grown as more viewers adopt TVNZ OnDemand as a primary source of content,” Kenrick says. The company reports average audience reach is up 43 percent to 330,000 per week, and total video streams are up 101 percent for the period.
“TVNZ OnDemand has become a significant, brand safe, online video option for New Zealand advertisers and this is reflected in the strong digital advertising revenue growth achieved in the last six months.
“TVNZ expects further changes to the local media market including the arrival of new global content services to occur this year. TVNZ will continue to champion local and live content as its primary point of difference and will focus on maintaining its TV market leadership and growing its digital reach and relevance,” he says.
The business is on track to deliver on its 2019 Financial Year Statement of Performance Expectations.