N.Z. BROADCASTING

Grey River Argus, 1 August 1940, Page 8

N.Z. BROADCASTING

SERVICES’ FINANCES In Strong Position ' [Per Press Association] WELLINGTON, July 30. A net profit of £22,056 was made by the National Commercial Broadcasting Service during the year ended March 31 last'. The total income of the National Broadcasting Service was £407,391, and £140,840 was transferred to accumulated reserves. Reserves now stood at £698,362. The income from license fees was £380,470, and expenditure on programmes £110,410. The National Broadcasting Service capital expenditure totalled £24,042, of which £9,369 was on the foundations of the new broadcasting house at Wellington. A further £155,000 was invested temporarily for future capital commitments. The profit of the commercial service permits of the writing off of the remainder of the outstanding fire loss at Station 3ZB, Chirstchurch, and removes from the balance-sheet the accumulated adverse balance of some £2,710 shown at the end of the previous financial year. A reserve of £13,400 has been set aside to meet income tax charges imposed on State commercial undertakings for the first time this year. The net result is to show a favourable balance to date of £417.

“In each balance-sheet since the inception of commercial broadcasting/ states the report, “the total of advances to meet the cost of establishing the service has shown successive increases until, at March 31, 1939, the amount owing stood at £101,926. During the last year the balance was reduced by repayments totalling £33,000. As an offset to this figure, charges for interest (£3678) and copyright (£4,421) have been added to the balance leaving a net decrease of £24,901 in advances which, at March 31, 1940, stood at £77,025.” An analysis of the income and expenditure account shows that general administrative expenses, including participation in the exhibition, were £116,360, while expenditure on programmes amounted to £11,883. A sum of £1,270 is allowed for bad debts. Sales of station time brought in £171,547. At the end of the financial year, the commercial service’s indebtedness to the national service was £77,025. Income from licence fees was £27,397 in excess of income from these fees in the previous year. Total expenditure increased by £23,457. This was due mainly to expenditure incurred in the publication of,the “New Zealand Listener.” Expenditure on this l journal during the year was £30,437,1 and the revenue £18,096. This excess of expenditure over revenue. is ac-| counted for by the preliminary expense of establishing the “Listener,” and the cost of the first issue involving free (distribution of 180,000 copies.