Following a loss in its FY2017 results, TVNZ's finances are on the rise again, with the company reporting net profit after tax up 265 percent to $5.1 million, and revenue up 0.6 percent to $318.5 million.
TVNZ also reported a $9.1 million lift in operational earnings and delivered EBITDAF of $24.6 million, up $9.1 million (58.6 percent) on the previous year.
The significant increase in net profit after tax follows a drop in FY2017, down $11.3 million from the previous year leaving the broadcaster with $1.4 million.
At the same time, its revenue had declined and operating expenses were up due to an onerous contract the broadcaster was tied to.
That contract, being TVNZ’s content output agreement with Disney, had become loss-making and last year chief executive Kevin Kenrick explained to StopPress it booked a $12.4 million provision in FY2017 to forecast future losses of the contract that had two more years on it at the time.
Looking at today's results, chairman Dame Therese Walsh is incredibly proud of the positive momentum shift in TVNZ’s performance this year – particularly the massive jump in online streaming scale.
"At the same time, we’ve continued to set the pace in TV and delivered improved financial results. By leveraging our strengths in telling New Zealand stories, we’ve shown local media players can compete and succeed.”
This year, the announcement of its FY2018 financial results comes with a celebration of its online results, with TVNZ OnDemand’s weekly audience reach up 15.2 percent for the year and in July, surpassing 100 million streams for the year.
The online space has also seen TVNZ launch kids site and app HeiHei in a partnership with NZ On Air.
Cate Slater, TVNZ’s content director, told NZ Marketing its creation is about engaging our youngest viewers with content that inspires them, makes them laugh, and broadens their horizons.
“Kiwi kids have been missing out on local programming. We know children are watching more content than ever; it’s just not always local content that speaks to their own unique stories.”
One product celebrating its first year during FY2018 was Re:, its alternative socially-driven news brand launched under the New Blood initiative. During that first year, it achieved 30 million video views.
Looking forward Kenrick says it expects competition in the media market to intensify.
“Our focus for the year ahead is to optimise our TV performance, accelerate TVNZ OnDemand growth and actively explore opportunities to diversify audiences and sources of revenue.”