TVNZ’s revenue up as it sees stable TV advertising and double-digit online growth

TVNZ’s half-year revenue was up $3.1 million, the company said in its financial results released today.

TVNZ CEO Kevin Kenrick Source: 1 NEWS

The rise, up 1.8% on last year to $173.5 million, was driven by stable TV advertising revenue and double-digit growth in online advertising revenues, the broadcaster said.

“TVNZ’s focus on local and live content coupled with increased investment in its digital future has resonated with New Zealand viewers and advertisers,” says TVNZ CEO Kevin Kenrick.

At the half way point in the fiscal year, the company has gained TV audience and advertising market share and has doubled its online streaming numbers.

Kenrick says the TV advertising market has benefitted 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 multiplatform 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,” said Kenrick.

The company reports average audience reach is up 43% to 330,000 per week, and total video streams are up 101% 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.

Operational expenses increased $7.5 million to $147.6 million (up 5.4%), reflecting the company’s commitment to increased local content and building digital capability to enable future options, says Kenrick.

The company reported EBITDAF for the six months to 31 December 2018 of $25.8 million - down $4.4 million on the same period last year but slightly ahead of its plan expectations.

TVNZ posted an interim after-tax net profit of $10.7 million, down $6.4 million (37.5%) – after accounting for a negative unrealised foreign exchange difference of $4.1 million versus the same period last year.

The business is on track to deliver on its 2019 Financial Year Statement of Performance Expectations.