RADIO NEW ZEALAND ANNUAL REPORT 2003/2004 CONTENTS Chairman’s Report 10 Radio New Zealand Board 13 Highlights 14 Performance Indicators 14 Our Charter 15 Chief Executive’s Report 17 Radio New Zealand Executive Team 20 Radio New Zealand Structure 21 Radio New Zealand Business Activities 22 Financial Performance 23 Directory inside back cover Research International All New Zealand Radio Surveys 2004 and 2003 plus 2004 Attitudinal Survey. *Source: ACNielsen All New Zealand Radio Surveys 2001, 2002. All people 15 years and over Mon-Sun 12mdnt-12mdnt, cumulative audience unless otherwise specified. SSomeome ppeopleeople ssayay wwe’vee’ve bbecomeecome iirrelevantrrelevant andand thatthat nobodynobody listenslistens toto RRadioadio NNewew ZZealandealand aanymore…thisnymore…this rreporteport iiss pproofroof ttoo tthehe ccontrary.ontrary. RResultsesults ooff tthehe RResearchesearch IInternationalnternational AAllll NNewew ZZealandealand RRadioadio SSurveyurvey 22004,004, sshowhow tthathat 606,100606,100 peoplepeople aagedged 1155 yyearsears oorr ooverver llistenisten ttoo eeitherither CConcertoncert FFMM aand/ornd/or NNationalational RRadioadio aatt lleasteast 6606,10006,ooncence eeach1ach wweek.eek.*00 LISTENERS 1 One in fi ve New Zealanders aged 15 and over now tune in to Radio New Zealand networks* 2 * 3 4 National Radio’s audience has increased by 5%, up from 494,700 listeners in 2003 to 518,100 in mid 2004. This is its highest cumulative POLLS THE IN audience since 2001.* This year Concert FM scored its biggest audience since 2000, % with an increase of 22% rising from 137,400 to 168,000.* 22 UP AUDIENCE CONCERT FM 5 In the past 12 months, overall National Radio and Concert FM audiences have grown by 8%.* * Audience % Growth 6 st In the fi ercely competitive Auckland radio market, Saturday Morning with Kim Hill (8am-noon) gets the number one market share, as does Checkpoint (Mon-Fri 5-6pm), Country Life (Sat 7-8am) and Insight (Sun 8.15-8.45am).* 7 O GOnly 1% of surveyed National Radio listeners have any dissatisfaction O with the station’sD overall news service.* NEWS8 Qantas Bill Toft Memorial Award 1 Qantas Lifetime 1 Achievement +1 1 + New Zealand Radio category winners 1 1 + +1 +1 + + + Qantas major 7 7category winners +9 +9 + Qantas sub 9 +9 category winners 7+15 7+15 +15 +15 =33 = Awards = 33Radio New Zealand dominated the radio broadcasting categories of the recent Qantas Media Awards and also took out seven categories at the New Zealand = Radio Awards, in disciplines ranging from news reading to 33 33 music production. 9 CHAIRMAN’S REPORT WE ARE NOW WITNESSING A RESURGENCE IN PUBLIC SERVICE BROADCASTING IN THIS COUNTRY, AND RADIO NEW ZEALAND IS LEADING THE WAY. Radio New Zealand, along with other broadcasters, recently applied funding available to get best value and lower costs service participated in a Government sponsored conference to examine the levels had started to suffer. That was turned around in 2003/2004. future for public service broadcasting in this country. After years in Despite the increased funding sound financial management was still which broadcasting has essentially been driven by deregulation and a key ingredient in our successful year. There are still a multitude of commercial imperatives, the Government is actively rethinking its calls on our funding for service enhancements and our funds need policy with a view to creating an environment where commercial, careful management. That sound financial management is reinforced public service and community broadcasters can flourish. Broadcasting through a robust internal audit and risk management programme which is a crucial element for successful nation building, which is why the combined with active process and policy review cycles ensures value principles of public service broadcasting have been revisited and placed for money in our operations. at the heart of the Government’s broadcasting agenda. Total funding received through NZOA amounted to $25.476m and The pursuit of national identity cannot be achieved through combined with other trading revenues and income of $5.001m gave total commercial interests alone. Only by adding the vital elements of revenue of $30,477m. After total operating expenditure of $30.097m independence, autonomy and service for the public good, can we Radio New Zealand recorded an operating surplus before tax of $380,000 provide all the ingredients necessary for a fully functioning participatory compared to budget of $135,000. After provision for current tax the net democracy. That is why Radio New Zealand is such a vital social and profit after tax is $49,000 compared to budget of $90,000. cultural institution in what is a dynamic but still young society. No dividend will be paid for the year as shareholding Ministers have New Zealand is witnessing a resurgence of interest in public service waived their right to receive a dividend. broadcasting, a resurgence reflected in the latest Radio New Zealand Our balance sheet remains strong although our substantial reserves are audience survey which shows that more than one in five New Zealanders likely to be fully consumed in the coming year as we finance major tune in to Radio New Zealand each week. capital investments such as for FM for National Radio, new office Radio New Zealand networks account for 14% share of all radio listening accommodation in Auckland and Christchurch and replacement and in this country, Concert FM has experienced 22% growth in audience upgrading of our audio production systems. The company is also likely and National Radio continues to have the largest station share nationally to be faced with a need to finance a new studio in Auckland to replace of any station in New Zealand for all people over the age of fifteen.* the Helen Young studio. And some say no-one listens to Radio New Zealand! FUNDING INCREASES RADIO NEW ZEALAND CHARTER Radio New Zealand has continued to argue strongly for adequate funding Radio New Zealand is proud to be a chartered public service to enable the company to meet its Charter obligations, to cover rising broadcaster. The Radio New Zealand Charter is a critical document costs of core services, and to ensure the organisation remains relevant in that sets out our operating principles. It defines what we do so that New Zealand’s fast changing broadcasting environment. everyone – staff, listeners and stakeholders – can easily understand our The announcement of additional Government funding for Radio New objectives, and what we are expected to provide for New Zealand Zealand and Radio New Zealand International in the 2004 Budget is a society. Our Charter is formally reviewed every five years. great vote of confidence in public service broadcasting in this country. The Radio New Zealand Amendment Act 2004 passed through A funding increase of $1.5 million for the 2004/2005 financial year committee stages in Parliament during the 2003/2004 financial year and $1.08 million for each of the following two years will allow Radio and came into effect from July 1st 2004. The Act introduces some New Zealand to focus on strategic planning priorities. These will be changes to the Radio New Zealand Charter established in 1995. concentrated in five broad areas: Changes under the Act mean that Radio New Zealand is required • Enhanced news, current affairs and features programming to provide programmes which contribute towards cultural, spiritual • Promotion of FM frequencies for National Radio New Zealand and ethical development of New Zealanders, to take account of more • Extension of the Concert FM transmission network varied interests and a full range of age groups, and to expand audience • Development of an internet based audio-on-demand facility research to survey people who are not current listeners. • Expansion of audience research and audience analysis. Our Charter continues to serve us well. We welcome the outcome Radio New Zealand International is the country’s only international of the review process and we also welcome the fact that the Radio short wave station, broadcasting 24 hours a day to audiences from New Zealand International service is now formally recognised within Papua New Guinea in the West to French Polynesia in the East, the Radio New Zealand Charter. covering all South Pacific countries in between. BUSINESS PERFORMANCE The station received a welcome boost with the announcement that A major contributor to the revitalisation of Radio New Zealand the Government is to fund the purchase of a new $2.64 million digital was the adjustment of its core funding in 2003/2004 to offset the transmitter to replace the existing analogue transmitter which has effects of inflation. While Radio New Zealand had meticulously reached the end of its serviceable life. Radio New Zealand International 10 RESURGENCEalso received an additional $421,000 annually to meet the increased departure of Elizabeth Hickey who left to take up a senior role costs in operating the new equipment. with the International Accounting Standards Board in London. The Radio New Zealand Board has supported Radio New Zealand I am fortunate to share the board table with a highly skilled and International for many years as it struggled to secure its future. It is diverse range of people, each with their own unique contribution encouraging to see such a positive outcome for these efforts. to public service broadcasting. I thank them for their commitment and dedication. MOVING FORWARD The Board of Governors, Executive, Managers and staff of Radio The period of this report spans the stewardship of two Chief New Zealand are committed to re-building and further developing Executives, Sharon Crosbie and Peter Cavanagh. I made note of this country’s principal public service broadcaster. Strategic emphasis Sharon Crosbie’s outstanding contribution to Radio New Zealand has been placed on long term planning – integrating, consolidating and in last year’s report. It was gratifying and entirely appropriate to see enhancing the institution of Radio New Zealand as an independent the value of that contribution acknowledged in the Queen’s Birthday entity with a mandate to operate in the broad public interest.