Strong financial recovery for TVNZ

AUCKLAND, Today: Significant audiences for live-event television, continued rapid growth of OnDemand, and improved market conditions have contributed to a strong financial year for TVNZ.

CEO Kevin Kenrick said the financial year result demonstrates the power of premium local content for advertisers and viewers.

“The last financial year has been quite remarkable for TVNZ. The scale of audiences combined with strong demand for video advertising has enabled the business to recover from the prior year’s financial challenges much faster than forecast.

“This positive momentum puts TVNZ in a position to accelerate its digital transformation and reimagine its future in the rapidly changing media market,” he said.

“Total advertising revenue was $ 322.2 million, $ 35.9 million more than the previous year.”

Operational earnings (EBITDAF) of $ 86.7 million for the financial year ending 30 June 2020 improved $ 96.4 million year-on-year. Net Profit After Tax (NPAT) increased to $ 59.2 million for the period, an improvement of $ 85 million from the year prior.

Total advertising revenue was $ 322.2 million, $ 35.9 million more than the previous year. The 44% year-on-year growth in digital revenue increases TVNZ’s confidence that the migration from broadcast viewing to digital streaming can be achieved in a financially sustainable way.

• Total operating expenses for the year decreased by $ 67.3 million to $ 253.3million. Content costs of $ 141.8 million reduced 29.6% year-on-year primarily due to Covid-19 impacts, including the release of an onerous provision this year, that was created in FY20 and supply chain restrictions resulting from international content production delays.

• Earnings: EBITDAF of $ 86.7 million – up $ 96.5 million YOY
• Net Profit: $ 59.2 million – up $ 85 million YOY
• Total Revenue: $ 340.0 million – increase of $ 29.2 million YOY
• Costs: $ 253.3 million – decrease of $ 67.3 million YOY

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