State-owned Television New Zealand will pay a smaller dividend to the Government after its operating profit fell 12.2% in the year ended June.
TVNZ reported a substantially increased net profit after tax of $14.2 millon compared with $2.08 million in the previous corresponding year.
However, the net profit disguises the fact that the company paid less interest, more than $15 million less in losses following the impact of TiVo moving through the accounts, and less tax. It did pay $5.7 million in asset impairments on the cost of switching off the analogue transmission network.
The Government will receive an $11.3 million dividend, down about $2.5 million on the dividend paid last year.
Advertising revenue rose 3% to $354 million. Total revenue was up 1% to $382 million.
The company's operating cash flow fell nearly $11 million to $33.7 million.
During the year, the company signed a joint venture with Sky Network Television for Igloo, a platform due to launch in which TVNZ holds a 49% interest. The accounts show TVNZ spent $12.2 million on its Igloo investment.
TVNZ chief executive Kevin Kenrick said increases in the cost of television programming, particularly overseas programming, were the primary driver of lower earnings.
TVNZ Ondemand had shown strong growth and distribution of the platform was being extended to devices such as Apple iPads, Samsung Galaxy Tablets and Samsung smart TVs once testing was complete, he said.
