TVNZ profits cut in half

Spring cleaning leads to 1997 net profits of $16 mil

AUCKLAND, New Zealand — Pubcaster TVNZ’s profits have been halved as a result of a 7.5% drop in ad coin, a cleanup of its inventory and increased competition.

Its annual result for 1997 was a net profit of $16 million, down from the $32.8 million of the previous year.

Company chairwoman Roseanne Meo said 1997 had been a watershed year for the web. It had restructured to face increased competition and, as part of its $19 million repositioning had eliminated obsolete program stock.

Savings on Horizon

In addition its spring cleaning TVNZ also eliminated costs associated with the closure last year of its failed regional network, Horizon Pacific Television.

Meo denied the cleanup of TVNZ’s balance sheet had anything to do with preparation for a government selloff, saying she saw the company continuing as the country’s free-to-air market leader.