TVNZ reported EBITDAF of $29.4 million for the six months to December 31, 2021, $26.3 million below the prior year, but in line with financial performance trends seen pre-Covid in the six months to December 2019.
Total revenue was up $8.0 million to $183.7 million. Revenue has steadily improved as the year has progressed, driven by strong growth in digital advertising and market leading share of television advertising.
Operational expenses of $154.2 million are $34.3 million higher than last year. $26.9 million of this increase is due to greater spend on content. Local and international production pipelines have picked up, boosting supply, and enabling TVNZ to return to pre-Covid levels of programming across channels and platforms. Non-content expenditure of $59.3m, up $7.6 million year-on-year, reflects an increased investment in people and digital capabilities as TVNZ’s operations have rebuilt momentum following restrictions imposed in the year prior.
TVNZ reported a FY22 interim Net Profit After Tax of $15.2 million, down $18.7 million year on year, after accounting for a $5.9 million tax expense.
Kevin Kenrick, TVNZ Chief Executive says the results are a positive start to what’s set to be an exciting period of change for TVNZ.
“TVNZ achieved a record financial result in FY21 largely due to a lack of content availability and cost constraints designed to preserve cash. We’re now seeing a return to pre-pandemic levels of expenditure, and this is powering double-digit growth in digital audiences and growth in total revenue.
TVNZ remains focused on ensuring digital growth outpaces any declines in broadcast. This has been achieved again in the last six months and TVNZ’s market leading share of TV combined with accelerating digital audiences and revenues provides confidence this momentum will be sustained.”
TVNZ generated $18.5 million cash flow from operating activities for the six-month period and is well placed to fund continued investment in building digital capabilities and to absorb potential financial volatility resulting from the uncertain market environment.
TVNZ’s interim result coincides with government consideration being given to the creation of a new public media entity comprised of crown-owned media assets.
“TVNZ awaits Cabinet’s announcement and will proactively support whatever future option is determined by our shareholder.
In the meantime, we are focused on delivering compelling content, supporting our viewers migration to online streaming and maintaining robust financial performance to ensure TVNZ’s continued success in the year ahead,” says Kenrick.
The news comes as Kenrick finished up his tenure at the media company on February 28.
“Today marks my final day at TVNZ after almost 10 years in the CEO role. It has been an enormous privilege to do this job and I’ve been lucky to work with great people at TVNZ and our business partners and I want to thank you for supporting TVNZ over my time as CEO. Our team is in great hands with Simon Power joining as CEO and Jodi O’Donnell continuing to lead our Commercial team.
“I’m taking an extended break over the next four to six months and will be catching up on the many hours of great TVNZ content I haven’t had time to watch yet,” he said in a statement.
