Dunedin-based film-maker NHNZ booked a roughly three-fold
profit increase to $3.1 million in its full year to June 2011,
underpinned by programme sales and licensing revenue up almost
The use of accumulated tax losses appears to make up a large
component of the balance sheet, with $11 million in tax
losses to be carried forward.
NHNZ, owned by Fox Television Studios, saw programme and
licensing sales up 35% from $16.77 million to $22.67 million,
but that was countered by a 55% rise in the cost of sales,
from $8.56 million to $13.4 million.
NHNZ managing director Michael Stedman said National
Geographic's I Survived had been one of "three
bottom-line drivers" for the company, and its 100th show
would be filmed this year.
NHNZ has 66 hours of shows in production, including first
deliveries of 10 hours of a new show, Ultimate Animal
Countdown, and another new show of six hours, budgeted at
$US1.2 million ($NZ1.5 million) per hour.
Wildlife show Built for the Kill has also wrapped up
its second series for the channel.
"We have been having steady and good growth," Mr Stedman told
The Travel Channel's Gem Hunter, set in Madagascar,
was going into six hours of production and a co-production
for Japan's NHK network was in progress, Mr Stedman said.
"These are good drivers in terms of the bottom line." Overall
operating earnings from revenue, which included extra gains
in both grant revenue and rental income totalling almost $1
million, rose 37% from $10.25 million to $14.07 million.
For the financial year, NHNZ's profit before tax was $3.25
million and it paid nearly 5% tax, or $151,639, compared to
nearly 7% the previous year ($58,252 on $894,450).
"Income tax losses available to carry forward and to offset
future taxable income approximately total $11 million
[compared to] 2010, $10 million, so long as the company
continues to meet the requirements of the income tax
"The benefit of these losses at 28% tax rate are $3.08
million (2010 at 30% were $3 million)," notes in the
financial statement said.
During the year, NHNZ sold its former Dowling St headquarters
for $1.2 million. Its new Melville St headquarters' land and
building were valued at $1.73 million, with building
improvements, at cost, of $4.24 million.
NHNZ, ultimately owned by News Corp, is the biggest producer
of Chinese documentaries outside that country. Last year it
finished making China Revealed, a 3-D show about the
country's cultures, colours and landscapes.
"3-D is a big driver - we made more 3-D documentaries than
any other country," Mr Stedman said.
NHNZ has offices in Beijing and Washington DC and controlling
stakes in Singapore-based production company Beach House
Pictures and South African-based Aquavision Wildlife
Its programmes are also supplied to the Discovery Channel,
Animal Planet, Discovery Science and A&E Television