KEY POINTS:
Following a major cost-cutting regime, TVNZ has turned in an improved first half profit and signs of recovery in its share of viewers.
The state-owned broadcaster, which has been dogged by falling ratings, said the results were the first under new international accounting standards.
Under the new standards, TVNZ booked a $20.6 million profit after tax for its December half - a $4.7 million or 22 per cent improvement on the same period a year ago.
Last March the company's first half result was $19.7 million, down $3.5m.
This half's operational earnings - before interest, tax and fair value changes on derivative financial instruments - returned $32.3 million, compared with $31.2 million for the same period last year.
TVNZ chief executive Rick Ellis said the results were ahead of budget and he was forecasting that to remain for the full year.
He said the results encouraging, both in financial terms and an improved performance of both channels.
"This is a positive start to our three year turnaround plan for the company. There is a lot of hard work still to go, but I am cautiously optimistic that we are getting back on our feet".
The pick-up appears to have been recent. Mr Ellis said One News had achieved a year-on-year gain in the last two months of the period.
TV1, wh ose audience has been eroded over several years, had also either equalled or surpassed its prior year ratings and share performance in four of the last six months, he said.
Its Breakfast programme, in particular, had increased its audience by 27 per cent since a competitor entered the market and, at its peak, had attracted prime time audience sizes.
The report includes the initial costs of the launch of TVNZ 6, and associated Government funding, as TVNZ moves in digital broadcasting.
In September it launched the Freeview platform, a free digital service, and yesterday launched digital news channel TVNZ 7.
A year ago, the company announced it was axing 150 staff, 59 of them in the news and current affairs section, costing the broadcaster $11.1 million.
In September last year, the company reported a $4.5 million annual loss on an operating profit of $9.3 million and revenue of $375.2 million.
Advertising revenues for the year were down 6.5 per cent.
The then-recently appointed chief executive Rick Ellis blamed a legacy of high cost structures during TVNZ's boom revenue period of 2002 to 2005 and the falling audience share.
- NZPA
