Radio New Zealand Limited. Quarter One Report to Crown Ownership Monitoring Unit. 1 July 2013 to 30 September 2013
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1 ~ I NEW ZEALAND ~ TE REO IRIRAtlGI AOTEAROA Radio New Zealand Limited Quarter One Report to Crown Ownership Monitoring Unit 1 July 213 to 3 September 213 Version 1.
2 Contents Overview... 3 External Relationships... 3 CEO Appointment and Induction... 3 Listener Surveys... 3 Parliament Television... 4 Te Manu Korihi Copyright... 4 The Hobbit Recording... 4 Coverage of the Pacific Islands Forum... 5 Innovation and Technology... 5 Online Youth Network... 5 Web Issues... 5 Digitisation Project... 6 Internal Matters... 6 Auckland Accommodation... 6 Hamilton Accommodation... 6 Insurances... 6 Wage Round... 6 Snowdon Matter... 7 Settling the Score... 7 The Proms... 7 Seddon Earthquake... 7 Financial Management... 8 Financial Performance... 8 Cash Flow... 8 Financial Position... 8 Performance Indicators
3 Overview Appointment of CEO, Paul Thompson. Work on the Youth Online Project is now well underway with a scheduled launch on 1 November 213. Several large earthquakes in the Seddon area were also felt with some force in Wellington. Our coverage of the event was extensive. External Relationships CEO Appointment and Induction An induction plan has been set up in order to build effective relationships with the Government, Parliament and public sector organisations. The CEO has met with the Broadcasting Minister, Members of Parliament and with Ministry of Culture and Heritage Advisors. Listener Surveys Updated listener survey results including wave 2 data continue to be very strong. Of all radio stations in New Zealand, Radio New Zealand National's station share of 1.5% makes it Number One nationwide. Its cumulative audience of 491, listeners makes it second among all stations in New Zealand (among people 15+) for audience size. Of all stations in New Zealand, Radio New Zealand Concert is 15th in terms of its station share and is 16th for cumulative audience size. Figures and rankings for programmes are as follows: Programme Cume Station Share Cume Ranking Share Morning Report 336, 13.7% 1 1 Nine to Noon with Kathryn Ryan 245, 8.3% 1 2 Afternoons with Jim Mora 246, 7.7% 2 4 Checkpoint 212, 9.9% 2 1 Nights with Bryan Crump 161, 11.1% 2 1 Saturday Morning with Kim Hill 216, 14.7% 1 1 Sunday Morning with Chris Laidlaw 26, 14.1% 1 1 3
4 Parliament Television Radio New Zealand was not selected by the Office of the Clerk of the House as the preferred supplier of Parliament Television. Radio New Zealand has accepted the Office of the Clerk's offer for a debrief, after completion of negotiations with the successful supplier, on the tender process and the reasons for the proposal not being accepted. In the meantime, it has been suggested that Radio New Zealand might explore options for utilising spare capacity on the channel. Radio New Zealand need to be very clear about the intended outcome of putting forward such a proposal and how the programming would be funded. Te Manu Korihi Copyright Over time, a number of news stories from our Maori news service, Te Manu Korihi, have been appearing on other publishers' websites and services without permission. Radio New Zealand's solicitors contacted the operator of the "maorinews.com" website, i.e. Kingston Strategic (NZ) Limited. Our stories were being reproduced in full on that website. They were advised that we had not given permission for our stories to be used in that manner, and that this use infringed our copyright in the material. On July 16, our solicitors were advised that our stories had been removed from the site and no additional RNZ material would be used in the future. Waatea News was contacted in regard to their use of our stories which they translated into Maori and used in their Maori language bulletins supplied to lwi radio stations. Our Head of News has since been contacted by Waatea's General Manager who has apologised for this practice and said it has now ceased. Finally, it appears that TVNZ's programme Te Karere has republished the text of Te Manu Korihi stories on their website. TVNZ's in-house solicitor has been contacted over the matter and she has undertaken to investigate and respond to Radio New Zealand. The Hobbit Recording A team from Radio New Zealand set up at the Wellington Town Hall to record the NZ Symphony Orchestra performance of the soundtrack of "The Hobbit: The Desolation of Smaug". The team of four recording engineers including staff and contractors recorded with the NZSO on about 15 days during August and September. The work gains plaudits for Radio NZ and gave Radio NZ staff the opportunity to work alongside some of the world's best production staff (including a team from Abbey Road studios). Some equipment purchased or upgraded, initially to do this job is available for future use by Radio NZ. 4
5 Coverage of the Pacific Islands Forum The Pacific Islands Forum was held in the Marshall Islands at the beginning of September. Radio NZ News were allocated a seat on the NZ Defence Force plane which flew there, enabling it to cover the forum. Unfortunately RNZI was unable to secure a seat on the plane and not able to separately cover the forum for its Pacific listeners. Innovation and Technology Online Youth Network Radio NZ met with NZOA to explore the possibility of funding for the Youth Online network. They indicated funding in the range of $15,-$2, may be available to support production of new programme content and required recognition of NZOA as a 'founding partner'. The new youth website will launch on November 1. The project is on schedule and budget. Milestones include: Four staff in place. Market research completed. Name and branding confirmed. First month's themed content being developed. Funding bid made to NZ On Air. Planning for launch under way. We have subsequently been advised that the NZOA Board has approved funding of approximately $2, for external development of website content. Web Issues Traffic on the revamped web site has slowed following a peak in interest coinciding with its redevelopment. Feedback is generally positive and is declining as users become more familiar with it. However the new version is slightly slower than the old version although not noticeable to most users. However it remains significantly faster than all other NZ media sites. The web team has now embarked on design of an upgrade aimed at performance improvements. It is anticipated that speed will be improved by as much as 3% for both desktop and mobile applications. 5
6 Digitisation Project The latest digitisation project, relating to the programme library content has been completed. It was extremely successful capturing significantly more material than originally anticipated and with a significantly lower failure rate than expected. Development of appropriate systems to allow routine access to this material and the previously digitised music library will deliver significant production and work flow system savings. Internal Matters Auckland Accommodation Fitout of extra space to accommodate relocation of staff from Wellington is underway. SANTK have confirmed they will take on a new lease for space in our building. Hamilton Accommodation Hamilton staff are currently housed in TRN Newstalk ZB premises in an open plan area without partitioning between Radio NZ and Newstalk areas. This is an unsatisfactory situation which is a carryover from the split of commercial and public broadcasting out of BCNZ in Recently TRN advised they will likely terminate our lease for the space. Radio NZ has identified suitable alternative premises, which will allow for its current operations plus limited staff reallocation as part of the disaster response preparedness strategy. Insurances All insurances for 213/214 have now been put in place including the new cyber insurance to cover losses arising from interference and damage to IT and associated systems. Wage Round Settlement of the collective employment agreement with the PSA and EPMU effective from 1 July 212 was for a two year term with annual increases in remuneration of 1%% for each of the two years. The adjustment due with effect from 1 July 213 was paid out on 17 July 213. Negotiations are underway with staff on individual employment agreements as part of the annual performance review process. Remuneration movements for these staff will also average 1%% across the board. 6
7 Snowdon Matter Ms Snowdon has paid into the Court a sum of $24, in security for Radio New Zealand costs as directed by the Court. The hearing commenced on 3 September 213 and is expected to last for approximately a four week period with provision for further court time to be allocated in November. Settling the Score Radio NZ Concert and the Auckland Philharmonia Orchestra have been meeting to finalise details for this year's 'Settling the Score' concert where the Philharmonia performs a number of works voted for by Concert listeners. The concert will take place in Auckland on Thursday 28 November. The Proms At the end of August we broadcast coverage of the 213 BBC Proms on Radio New Zealand Concert. The Proms are a British institution and a major highlight on the London music calendar. During September we broadcast 3 concerts from the Proms, with the finest musicians performing some of the greatest musical masterpieces. Included in the coverage were operas by Britten and Verdi, World Music concerts and jazz performances. All our Proms broadcasts are made within one month of the concert's performance in London, to ensure listeners to Radio New Zealand Concert are up to date with the best of what's happening now in London. Seddon Earthquake The strong earthquakes in July and August centred around Seddon and large tremors in Wellington resulted in Radio NZ National abandoning normal programming in favour of rolling coverage of extra news bulletins and emergency advice. News staff also provided valuable live crosses into this coverage. The quakes reinforced the need for extra staffing in Auckland and the opportunity was taken on the first of the quakes to relocate staff to Auckland to ensure they were sufficiently resourced should they need to take over from Wellington. The AM transmitter at Mt Kaukau went off air for about 4 minutes, due to a blown fuse, probably as a consequence of the shaking. However listeners in the transmitters signal area still had access to Radio NZ National programming on any one of our FM Network, Sky Satellite service, the Freeview service or the Radio NZ website. Once again Radio NZ was approached by many overseas broadcasters seeking information. 7
8 Financial Management Financial Performance Radio New Zealand recorded an operating breakeven against a budgeted surplus of $13, for the quarter. Cash Flow Radio New Zealand recorded a negative cash flow of $121, for the quarter against a budgeted negative cash flow of $754, for the quarter. Financial Position Net working capital is $5,622,. Debt/equity gearing is 18/82. Richard Griffin Chairman Radio New Zealand 23 October 213 8
9 Performance Indicators For The Period Ending: 3 September 213 Revenue 9,737 9,742 Expenditure 9,737 9,729 Net Profit (Loss) After Tax 13 Operating Cash Flow- movement Earnings Before Interest and Tax (9) (78) Earnings Before Interest, Tax, Depn, Amort and Financial Adj I Staff FTEs at 3 September Total hours of NZ content (RNZ National) 264:9 1965:8 % of NZ music on rotate (RNZ National) 34.33% 33.% % of NZ music performance (RNZ Concert) 15.29% 14.% 9
10 RADIO NEW ZEALAND SUMMARY FINANCIAL STATEMENTS- for the period ended 3 September 213 STATEMENT OF COMPREHENSIVE INCOME GROUP YTD 3 SEPT 213 $ ACTUAL YTD 3 SEPT 213 $ BUDGET INCOME Re\ nue from the Crown Other re\ nue Interest income 8, ,737 8, ,742 EXPENDITURE Personnel costs Depreciation & amortisation Interest costs Audit fees Other 5, ,13 9,737 5, ,349 9,729 OPERATING SURPLUS I (DEFICIT) 13 Corporate taxation TOTAL COMPREHENSIVE INCOME $ $13 1
11 RADIO NEW ZEALAND SUMMARY FINANCIAL STATEMENTS- for the period ended 3 September 213 STATEMENT OF CHANGES IN EQUITY GROUP YTD YTD 3 SEPT 3 SEPT $ $ ACTUAL BUDGET Balance at the beginning of period 49,324 49,685 Total Comprehensive Income 13 Balance at the end of the period $49,324 $49,698 RADIO NEW ZEALAND SUMMARY FINANCIAL STATEMENTS- for the period ended 3 September 213 STATEMENT OF FINANCIAL POSITION GROUP PUBLIC EQUITY Q1 3 SEPT 213 $ ACTUAL 49,324 Q1 3 SEPT 213 $ BUDGET 49,698 CURRENT ASSETS Cash & cash equivalents Account receivables & prepayments Total Current Assets 13, ,226 11, ,169 less CURRENT LIABILITIES Accounts payable, accruals, revenue in advance Employee entitlements Other salary and employee accruals Provisions Preference shares Total Current Liabilities WORKING CAPITAL 2, ,72 4,12 8,64 5,622 2,291 1, 1,75 4,12 9,161 3,8 plus NON CURRENT ASSETS Property, plant & equipment Intangible assets less NON CURRENT LIABILITIES NET ASSETS 45, ,266 $49,324 47, ,5 $49,698 11
12 RADIO NEW ZEALAND SUMMARY FINANCIAL STATEMENTS- for the period ended 3 September 213 CASH FLOW STATEMENT GROUP YTD 3 SEPT 213 $ ACTUAL YTD 3 SEPT 213 $ BUDGET CASH FLOWS FROM OPERATING ACTIVITIES Cash was provided from: NZOA, the Crown, and other income Interest received Cash was disbursed to: Payments to employees & suppliers Interest expense Net Cash from operating activities 1, , , , CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Proceeds from the sale of assets Cash was disbursed to: Purchase of non current assets Net Cash from investing activities 454 (454) 1,25 (1,25) CASHFLOWS FROM FINANCING ACTIVITIES Cash was provided from: Bank loans Cash was disbursed to: Bank loans Net Cash from financing activities NET INCREASEI(DECREASE) IN CASH plus Opening cash CASH & CASH EQUIVALENTS AT YEAR END (121) 13,354 $13,233 (754) 12,423 $11,669 12
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