Television New Zealand Ltd

Television New Zealand Ltd (TVNZ) is New Zealand's leading television and digital media company. TVNZ has two commercial free-to-air channels, TV ONE and TV2, and two free-to-air digital non-commercial channels, Channel U and TVNZ 7, which are broadcast through the Freeview platform. TVNZ also has two pay channels, TV Heartland and Kidzone24, on the SKY platform.

TVNZ has a 33% shareholding in Hybrid Television Services (ANZ) Pty Ltd, which owns the Australasian rights for TiVo, a media device offering digital viewing services.

TVNZ’s editorial independence is enshrined in the Television New Zealand Act 2003, and freedom from political influence is a fundamental principle.

www.tvnz.co.nz

Key Documents

11 Jan 2012 Annual Report 2010/11 (TVNZ website)
11 Jan 2012 Statement of Corporate Intent 2011: tvnz-si-11.pdf (265 KB)
20 Nov 2010Annual Report 2009/10: tvnz-ar-09-10.pdf (3113 KB)
20 Nov 2010Half Yearly Report 2009: tvnz-hy-09.pdf (331 KB)
20 Nov 2010Statement of Corporate Intent 2010: tvnz-sci-10.pdf (281 KB)

KPI

Key Financial Performance Indicators - TVNZ

For the Year Ended 30 June 2011

SOI Target

Actual 2011

Return on Average Equity (Reported Earnings)  (%) [1] 1.3 6.6
Return on Average Equity (Normalised Earnings)  (%) [1] [2] 12.3 6.6
EBITDRA/Core Television Revenue (%) [3] 17.5 12.5
Net Interest-bearing Debt/Net Interest-bearing Debt plus Equity (%) Less than 40 6.1
Total Equity/Total Assets (%) More than 40 67.5
EBITDA/Interest Expense (times) More than 4 19.6
  1. The calculation of Return on Average Equity will exclude the fair value changes on derivative financial instruments from the calculation of net profit after tax
  2. Normalised earnings exclude net tax effect of programme amortisation revision, financial instruments/foreign currency gains/(losses) and income tax changes
  3. EBITDRA - earnings before interest, tax, depreciation, amortisation, reorganisation costs, programme amortisation revision and financial instruments/foreign currency gains/(losses)

Financials

2007

2008

2009

2010

2011

Total Shareholder Return (%) 4.2 0.0 (44.8) 59.8 7.0
Dividend yield (%) 4.2 0.0 3.9 0.6 1.6
Dividend payout (%) 73.5 0.0 73.8 6.9 16.4
Adjusted ROE (%) (2.3) 6.5 1.6 (14.3) 2.3
ROCE (%) (1.2) 10.0 3.1 (5.6) 13.4
Operating margin (%) 3.5 10.7 6.0 1.0 14.2
Net gearing (%) 12.6 10.9 15.5 18.4 3.4
Interest cover 3.13 11.19 10.64 1.22 19.49
Current ratio 2.24 1.51 1.15 1.67 1.72
Dividend growth (5 year) (23.9)
Revenue growth (5 year) 0.3

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