Television New Zealand has announced a net surplus after taxation for the fiscal year 2001 of $30 million and has declared dividends for the year totalling $21 million.
TVNZ Chief Executive Rick Ellis said Group revenue increased by $7.7 million to $481.1 million, an increase of 1.6 per cent on
the same period last year. The company's operating surplus was $45.6 million.
The company said an increase in transmission-related revenues, particularly from TVNZ Australia and TVNZ Satellite Services had offset increased costs and a decline in advertising revenue, which at $284.7 million for the year, was a decrease of $11.1 million (3.7%) on the previous year.
While TVNZ's share of television advertising revenues improved slightly during the year, Mr Ellis said it is clear that the television industry faces a significant challenge to reverse the trend over the past nine years which has seen its share of advertising revenue decrease by 6.3 per cent.
"The increase in content costs are attributable to the rights for screening the 2000 Olympics, an increase in local content costs including news and current affairs, and the impact of a weaker New Zealand dollar on the cost of overseas programme purchases."
TVNZ Chairman Dr Ross Armstrong said the year had been momentous for TVNZ, with the Government announcing details of the pending TVNZ Charter and the company's transition from a State Owned Enterprise to a Crown Owned Company with a focus on public broadcasting.
"The precise nature of the new Crown Owned Company is not yet known, although the Government has signalled that the television business will be required to concentrate on its Charter obligations while the transmission businesses will continue to maintain a strong commercial focus.
"The Board hopes the Charter will liberate untapped creative talents and programme ideas in a way not previously emphasised under the State Owned Enterprise model.
"Against this background of change, TVNZ has performed creditably during the past year in an increasingly competitive and complex broadcasting environment."
