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TE PŪRONGO Ā-TAU

MŌ TE TAU I EKE I TE 30 O PIPIRI 2018

Annual Report For the year ended 30 June 2018

TE PŪRONGO Ā-TAU MŌ TE TAU I EKE I TE 30 PIRIPI 2016

Annual Report of Māori Television Service 2018

WAWATA Vision Te Kuaha ki te Ao Māori.

WHAKATAKANGA Mission Ko te uaratanga o Whakaata Māori he tākoha ki te angitu-ā-Māori mā roto i te reo Māori me ngā tikanga Māori. Māori Television’s mission is to contribute to Māori success through the Māori language and Māori culture.

UARA Values KIA TIKA Kia ngaio, kia mau ki ngā taumata tiketike. Be professional and maintain high standards.

KIA PONO Kia pono, kia tika, kia ngākau tapatahi. Be truthful, honest and act with integrity.

KIA AROHA Kia mataara, kia whakaaro nui ki tētahi atu. Be respectful and demonstrate empathy.

KIA MĀORI Kia mau kia ū ki te hōhonutanga o ngā tikanga Māori. Maintain and uphold core Māori values.

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI MŌ TE TAU I EKE I TE 30 O PIPIRI 2018

Annual Report of Māori Television Service FOR THE YEAR ENDED 30 JUNE 2018 Presented to the House of Representatives, pursuant to section 44(2) of the Māori Television Service (Te Aratuku Whakaata Irirangi Māori) Act 2003. MINISTERS FOR MĀORI DEVELOPMENT AND FINANCE In accordance with the Māori Television Service (Te Aratuku Whakaata Irirangi Māori) Act 2003 and on behalf of the Māori Television Board, I deliver the Annual Report on the operations of Māori Television for the year ended 30 June 2018.

Jamie Tuuta Chairman

TE RĀRANGI ŪPOKO Contents

NGĀ TIROHANGA A TE MANUKURA ................................................................................................................... 02 Chairman’s Review TE PŪRONGO A TE TĀHUHU RANGAPŪ ............................................................................................................ 06 Chief Executive's Report NGA HŌTAKA WHAIHUA ............................................................................................................................................. 10 Highlights TE MANA ARATAKI ME NGA WHAKAAENGA ................................................................................................. 14 Governance and Accountability NGĀ PUTANGA MATUA 2017-2018 ...................................................................................................................... 16 Key Outputs 2017-2018 FINANCIAL STATEMENTS ........................................................................................................................................... 18 for the Year Ended 30 June 2018 TE TAUĀKĪ HAEPAPATANGA ...................................................................................................................................... 19 Statement of Responsibility TE PŪRONGO A TE KAITĀTARI KAUTE MOTUHAKE ................................................................................... 20 Independent Auditor’s Report TE TAUĀKĪ MAHI .............................................................................................................................................................. 22 Statement of Performance TE TAUĀKĪ O NGĀ WHIWHINGA MONI WHĀNUI ...................................................................................... 24 Statement of Comprehensive Revenue & Expense TE TAUĀKĪ NEKENEKE TŪTANGA .......................................................................................................................... 24 Statement of Changes in Equity TE TAUĀKĪ TŪNGA PŪTEA ......................................................................................................................................... 25 Statement of Financial Position TE TAUĀKĪ KAPEWHITI ................................................................................................................................................ 26 Statement of Cash Flows NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA ........................................................................................ 27 Notes to the Financial Statements

Annual Report of Māori Television Service 2018

NGĀ TIROHANGA A TE MANUKURA Chairman’s Review I te kopoutanga ōku hei Kaihautū mō te Poari o Whakaata Māori i te 7 o Haratua o tēnei tau, e whai hōnore ana au i tēnei tāpaetanga o te Pūrongo ā-Tau a Whakaata Māori mō te tau i pau rā i te 30 o Pipiri, i te tau 2018. E mihi ana au ki te ārahitanga me te takohatanga mai a Kahurangi Georgina te Heuheu, i whakangā-riro rā i a Haratua o tēnei tau i muri i tana noho hei Kaihautū i ngā tau e ono. Nōna e hautū ana, kua ārahi a Kahurangi Georgina i a Whakaata Māori i tētahi wā tāpua pēnei i te hūnukutanga o Whakaata Māori i tōna papa i Newmarket ki tō mātou kāinga i Ngā Tapuwae o Mataaho. E mihi ana hoki au ki ngā takoha mai a Piripi Walker rāua ko Rhonda Kite, i whakangā-riro rā hoki i te tau e arotakehia nei. Hei āpitihanga ki tōku kopoutanga, ka pōwhiritia hoki e Whakaata Māori ngā mema hou e rua o te poari. Ko Kingi Kiriona (nō Ngāti Ruanui, nō Ngāti Kahungunu, nō Ngāti Apa hoki) tētahi poutoko kōhara ki te reo Māori, ko ia hoki te kaiwhakatū me te tumuaki whakahaere o Tupu Ora Education and Development Ltd. Nā Kingi te wāhi i a Piripi Walker i whakakapi. Ko tētahi wahine kua whai tohu toa mō te pakihi, ko Maru Nihoniho, (nō Te Whānau a Apanui, nō Ngāti Porou, nō Ngāi Tahu) tētahi kaiwhakawhanake pūmanawa-auaha, ā, he tumuaki hoki ia ki Metia interactive. Kua kapi i a Maru te wāhi i a Rhonda Kite. TE MAIHI KARAUNA He tūranga matua tō Whakaata Māori, he takoha nui hoki tāna ki te whakarauoratanga o te reo Māori me ngā tikanga. Ko tā mātou whāinga pae tawhiti, ko Te Kuaha ki te Ao Māori, e whakaatu ana i tō mātou tūranga ki te whakakā i te ahi o te kōhara ki te ao Māori ki ngā kōrero whakawarea e motuhenga. Ki ō mātou whakaaro, ko Whakaata Māori tētahi atamira matua hei whakaawe i te whakarauoratanga o te reo me ngā tikanga Māori e pakari ai tō tātou tuakiritanga ā-motu.

He tūranga matua tō Whakaata Māori, he takoha nui hoki tāna ki te whakarauoratanga o te reo Māori me ngā tikanga. Ko tā mātou whāinga pae tawhiti, ko Te Kuaha ki te Ao Māori, e whakaatu ana i tō mātou tūranga ki te whakakā i te ahi o te kōhara ki te ao Māori ki ngā kōrero whakawarea e motuhenga. Jamie Tuuta Kua tau mātou ki tētahi wā whakahiamo o te mahinga tahitanga me te pāhekoheko tahitanga, ā, ko mātou tētahi o ngā hinonga ā-reo a te Karauna me ō mātou haepapa e angitu ai ko Te Whare o te Reo Mauri Ora, i te taha o Te Puni Kōkiri, o Te Taura Whiri i te Reo Māori me Te Māngai Pāho. E ū ana ō mātou whakaaro ki te mahi tahi me ēnei pokapū kia tautohua ai te āhua o tā tēnā, o tā tēnā takoha ki ngā herenga o te Kāwanatanga me ana whāinga ki te whakarauora i te reo me ngā tikanga Māori. He takoha matua tā mātou kua tāpaea ki te whanaketanga o te Maihi Karauna, ki tā te Karauna rautaki hukihuki mō te reo Māori, ā, e hīkaka ana ki te mahi tahi me ngā Minita, me ngā pokapū a te Karauna i runga i te patuinga me Te Mātāwai ki te whakatinana i te rautaki. I te tūnga hei whakahaere, e whakaatu tonu ana mātou i tō mātou ū ki te reo Māori mā te whakawātea huarahi mō ā mātou kaimahi hei whakapakari ake i ō rātou mōhio ki te reo. E āwhina ana ngā wānanga reo mā ngā kaimahi me ngā hōtaka a Te Ataarangi i tā mātou whāinga kia tino reorua tō mātou wāhi mahi. TE AHUNGA Ā-RAUTAKI I a Mahuru i te tau 2018, ka whakaae te poari ki tētahi rautaki e ārahina ana e te hunga mātakitaki kia kawea ai a Whakaata Māori ki tētahi huarahi hou. E mārama katoa ana mātou,

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

e rere ana ā mātou mahi ināianei i tētahi taiao pāpāhotahiko e whakataetae ana, e hihiri ana, ā, me urutau mātou e whai take tonu ai, ā, e tutuki ai ō mātou herenga ā-ture me tā mātou whāinga. Waihoki, e mōhio ana mātou me panoni te āhua o Whakaata Māori kia tū ai hei puna matua mō te reo Māori me ngā pāhotanga Māori. E tautohu ana tā mātou rautaki hou i ngā wāhi matua o te haumitanga me te aronga. Kei ēnei ko te tukunga o ngā kaupapa kounga e whakangahau ana, i ahu mai hoki i tētahi tirohanga a te Māori – i ngā wāhi me ngā wā e pīrangitia ana e ā mātou hunga mātakitaki. Nā konei me rerekē ō mātou whakaaro ki te āhua o tā mātou whakatinana i tā mātou rautaki hou, i te haumitanga me te kaha hoki me whai e tutuki ai ā mātou whāinga. Kua tīmata tēnei mahi i te wāhanga tuatahi o te tukanga ā-rautaki hei whakahāngai anō i a mātou. Ko tā mātou aronga hei ngā marama 12 e tū mai nei ko te tautoko i tā mātou pou mataaho ki te whakahaere i tā mātou rautaki hou, ki te whai kia mārama ngā pūreirei whakatutuki me ngā tohu paearu. NGĀ KAUPAPA TĀPUA I neke a Whakaata Māori i te whakaata māori noa ki te whakaata ā-papa tahiko e ngangahu ana, nā reira i pai ake ai te wheako mātakitaki ki ā mātou hunga mātakitaki, e kairangi ai ngā kaupapa whakaaturanga puta noa i te pouaka whakaata rārangi ā-papa me ā mātou pūnaha ipurangi. • I te tau kua mahue ake nei, kua neke atu i te 44 miriona ngā mēneti o ngā whakaaturanga ipurangi puta noa i ā mātou pūnaha katoa kua pau i ā Whakaata Māori hunga mātakitaki te tirotiro, tae atu ki tā mātou pae tukutuku mā te rokinga hōtaka, mā te pāho inamata, mā tā mātou taupānga hono ā-Whakaata Māori me te Freeview On Demand. • I mahi mātou ki te whakapakari i ētahi tāpaetanga ā-tahiko hei wāhanga mō tā mātou rautaki e arahina nei e te hunga mātakitaki, tae atu ki tētahi patuinga mahinga tahitanga me Freeview, me MediaWorks me Te Reo Tātaki kia whakawhanakehia te whakaaturanga hou o te Freeview Plus – Freeview On Demand, he wheako matatini ki te kaimātakitaki. NGĀ TOHU WHAKAWHIWHI ME NGĀ WHAKATUTUKIHANGA E mihia tonutia ana ngā kaikawe pūrongo o Whakaata Māori mō ā rātou mahi pūrongo. He tohu tēnei i te tūranga ārahi e tū nei mātou hei kōrero i ā mātou kōrero e ai ki te titiro a te Māori. He mea whakawhiwhi te kaiwhakataki o Native Affairs, a Oriini Kaipara, ki te tohu o te Toa mō ngā Take Māori, mō ngā mahi pūrongo i te hui tuku tohu ā-motu o te tau, i ngā Tohu Pāpāho a Voyager. He mea tautapa hoki te ingoa o

Oriini Kaipara ki te wāhanga o te Toa Whakatewhatewha mō tāna whakatewhatewha i te whakatau a te Kōti mō ngā take Whānau nāna nei i aukati te kuraina o tētahi kōtiro, e whitu ōna tau, ki ngā kura reo Māori. I whai wāhi hoki te ingoa o Oriini ki te rārangi o ngā whiringa toa i te wāhanga reo Pākehā i ngā whakawhiwhinga tohu o tērā tau, mō tana kōrero e pā ana ki te whakatau a tētahi tāne kia tāmokohia ia ki te kauae-tehe e tika kē ana mō te wahine anake. O ngā ingoa e rima i te rārangi whiringa toa mō te Kaikawe Pūrongo Māori o te Tau i ngā tohu a Te Kunenga ki Pūrehuroa, e whā nō te taiwhanga whakapāho rongo kei Whakaata Māori. TE WHAKAHAERE PŪTEA I te tūnga hei hinonga e whai pūtea ana i te Karauna me te whai haepapatanga nui rawa atu i ngā pūtea a te hunga utu tāke, e kaha ana tā mātou mahi kia puritia ai tō mātou mana hei whakahaere tōtika ā-pūtea nei, e whakahaere ana i tētahi pūnaha whakahaere-pūtea e pakari ana e matawhāiti ai, e noho haepapa ai tā mātou whakahaere pūtea. I te paunga o ngā tau 14 o ngā whakahaere, kua tau ā mātou whakahaere ki tētahi taiao mutunga mai nei o te whakatara ā-pūtea nei. Nā te korenga o te pūtea whakataetae i ngā tau e 5 kua pahure ake nei me te pikitanga o ngā nama me ea i te tahua pūtea kei a mātou kē, noho taumaha ana tō mātou whakahaere, me te aha, kua mate mātou ki te huri i te aro o ngā wāhi e haumi ai mātou kia tutuki ai ō mātou herenga ā-ture. Ka kaha tonu mātou ki te ū ki te mahi me ngā pokapū kāwanatanga me ō mātou Minita whai pānga i a mātou e whakarite ana i te ara hou e tuku tonu ai a Whakaata Māori i tētahi ratonga kairangi o te reo Māori e hāngai ana, e whai take ana, e wātea ana hoki ki te whānuitanga o ō mātou hapori. E hiahia ana au ki te mihi, ki te tuku whakamānawa hoki ki ōku hoa o te poari mō te whakatakoto takoha tonu me te ū tonu mai. E mihi ana mātou ko tō tātou poari ki ā mātou kaimahi mō tō koutou ū ki te reo me ngā tikanga Māori. E whakamānawatia nei tō koutou ngākau nui. Ehara i te mea kāore ā tō tātou whakahaere wero nā te panonitanga o te taiao e mahi nei tātou, ā, nā tō koutou rikarika me te kōhara tonu e whakarite huarahi tonu nei tātou e toro ai ngā tāngata o Aotearoa ki te ao, ki te reo me ngā tikanga Māori.

Jamie Tuuta Chairman

Annual Report of Māori Television Service 2018

NGĀ TIROHANGA A TE MANUKURA Chairman’s Review As the new Chairman appointed to the Māori Television Board on 7 May this year, it is my privilege to present Māori Television’s Annual Report for the year ending 30 June 2018. I’d like to acknowledge the leadership and contribution of Dame Georgina te Heuheu who retired in May this year after six years as Chair. During that time, Dame Georgina has led Māori Television through a critical period including the relocation of Māori Television from its Newmarket premises to our new home in East Tamaki. I also acknowledge the contribution of Piripi Walker and Rhonda Kite who also retired during the year in review. In addition to my appointment, Māori Television welcomed two new board members. Kingi Kiriona (Ngāti Ruanui, Ngāti Kahungunu, Ngāti Apa) a passionate advocate for te reo Māori and the founder and managing director of Tupu Ora Education and Development Ltd. Kingi replaced Piripi Walker. Award winning business woman Maru Nihoniho (Te Whānau a Apanui, Ngāti Porou, Ngāi Tahu) an innovative software developer and director of Metia Interactive. Maru replaced Rhonda Kite. TE MAIHI KARAUNA Māori Television plays a pivotal role and contribution to the revitalisation of Māori language and culture. Our vision Te Kuaha ki te Ao Māori, connecting the world to Te Ao Māori speaks to our unique role to ignite passion for Te Ao Māori with authentic engaging stories.

Māori Television plays a pivotal role and contribution to the revitalisation of Māori language and culture. Our vision Te Kuaha ki te Ao Māori, connecting the world to Te Ao Māori speaks to our unique role to ignite passion for Te Ao Māori with authentic engaging stories. Jamie Tuuta We have entered an exciting new era of collaboration and cooperation and as one of the Crown language entities with responsibilities for the success of Te Whare o te Reo Mauri Ora, alongside Te Puni Kōkiri, Te Taura Whiri i te Reo Māori and Te Māngai Pāho. We are committed to working with these agencies to identify how we each contribute to the Government’s obligations and goals to revitalise te reo me ngā tikanga Māori. We have made a key contribution to the development of Maihi Karauna, the Crown’s draft Māori language strategy and look forward to working with Ministers and Crown agencies in partnership with Te Mātāwai to implement the strategy. As an organisation, we continue to demonstrate our commitment to te reo Māori by providing opportunities for our staff to build their language proficiency. All staff Wānanga Reo and in house Te Ataarangi programmes continue to build on our objective to be a truly bi-lingual workplace. STRATEGIC DIRECTION In September 2018, the board approved an audience-led strategy to take Māori Television in a new direction. We are fully aware that we now operate within a competitive dynamic digital

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

media environment and that we must adapt in order to remain relevant and to meet our statutory obligations and purpose. Further, we recognise the need to reposition Māori Television to be the leading source of te reo Māori and Māori content. Our new strategy identifies key areas of investment and focus. This includes delivering quality content that is entertaining and presented from a Māori perspective – where and when our audiences want. This will require us to think differently about how we execute our new strategy and the investment and capability required to achieve our goals. This work has commenced with the first stage of our strategic realignment process. Our focus for the next 12 months is to support our executive to operationalise our new strategy and to ensure that we have clear milestones and performance indicators. HIGHLIGHTS • Māori Television migrated from standard to high definition digital terrestrial television this financial year which has enhanced the viewing experience for our audiences, ensuring the best quality video content across both terrestrial linear television and our online platforms. • Over the past year, Māori Television’s online audience has consumed more than 44 million minutes of online video across all our platforms, including our website via on demand, livestreaming, our Māori Television connect app and Freeview On Demand. • We worked on a number of digital offerings as part of our audience-led strategy including a collaborative partnership with Freeview, MediaWorks and TVNZ to develop the new version of Freeview Plus – Freeview On Demand, a hybrid experience for the viewer. AWARDS AND ACHIEVEMENTS Māori Television journalists continue to be recognised for their reporting. This is an acknowledgement of the leadership role we play in telling our stories from a Māori perspective. Native Affairs presenter Oriini Kaipara won Best Māori Affairs reporting at this year’s national Voyager Media Awards. Oriini was also nominated in the Best Investigation category for her investigation into a Family Court ruling which banned a seven-year-old from any reo Māori

education. Oriini Kaipara was also a finalist in the English category at last year’s awards, for her story concerning a man’s decision to have a traditionally female-only moko kauae. Four of the five finalists for Māori Journalist of the Year at the Massey University Māori journalism awards are from Māori Television’s newsroom. FINANCIAL PERFORMANCE As a Crown funded entity with ultimate responsibility for tax payer funds, we work diligently to maintain our reputation for being a fiscally responsible organisation, operating a strong financial management system that ensures we are financially prudent and accountable. After 14 years of operation we find ourselves operating within an extremely challenging funding environment. The loss of contestable funding over the last 5 years combined with rising costs, having to be met within existing budgets, has placed our organisation under pressure, and has required us to refocus our areas of investment to meet our statutory obligations. We will maintain our commitment to work with government agencies and our shareholding Ministers as we chart a new direction to ensure Māori Television continues to deliver a high quality Maori language service that is relevant, effective and widely accessible to our communities. I would like to acknowledge and thank my fellow board members for their ongoing contribution and commitment. On behalf of our board I would like to thank our staff for your commitment to te reo me ngā tikanga Māori. Your dedication to our kaupapa is appreciated. Our organisation has not been without its challenges given the changing environment that we operate within and it has been a result of your continued enthusiasm and passion that we continue to provide opportunities for all New Zealanders to access Te Ao Māori, te reo me ngā tikanga.

Jamie Tuuta Chairman

Annual Report of Māori Television Service 2018

TE PŪRONGO A TE TĀHUHU RANGAPŪ Chief Executive’s Report HE KUPU WHAKATAKI E tau ana a Whakaata Māori ki tētahi wā o te panoni kāore anō kia tauria e mātou ā mohoa nei i a mātou e neke ana i te aronga ā-hōngere pouaka-whakaata ā-rārangi kia noho ko mātou te pūnaha tahiko mō te pāho-maha pai katoa i te ao mō ngā pāhotanga reo Māori.

E tau ana a Whakaata Māori ki tētahi wā o te panoni kāore anō kia tauria e mātou ā mohoa nei i a mātou e neke ana i te aronga ā-hōngere pouaka-whakaata ā-rārangi kia noho ko mātou te pūnaha tahiko mō te pāho-maha pai katoa i te ao mō ngā pāhotanga reo Māori. Keith Ikin TE ARONGA Ā-RAUTAKI He mahi nui tonu te arotakenga ā-rautaki o Whakaata Māori mā te Poari me ngā kaimahi o Whakaata Māori i tēnei tau. Ko te aronga matua i te rautaki hou ko tō mātou ū ki te pāhekohekotanga atu ki ngā taiohi me ērā kātahi anō ka tīmata tā rātou takahi i te huarahi o te reo Māori. E pūmau tonu ana tō mātou ū ki ā mātou hunga mātakitaki e piripono mai ana, ki ērā hoki e mōhio ana ki te reo Māori. E takoto ana i tā mātou rautaki tētahi aronga hou anō ki te tautoko i te paingia me te whakamahia whānuitia o te reo Māori, otirā, i waenga i ngā taiohi, i a mātou e tautoko tonu ana i te hapori kōrero Māori. Ko te nui taioreore o te tipu o te whāia o te reo Māori puta noa i te motu e whakapātaritari ana i a mātou kia urupare ki te hiahia ki ngā pāhotanga auaha kei te reo Māori. Ko te tuku pāhotanga e kairangi ana, e ngahau ana, e whai mōhiotanga ana, ki hea rānei, āhea rānei, ahakoa te wāhi o te ara kōrero-Māori e tūria ana e koe, tā mātou e whai nei. E tutuki ai tēnei, he mea me panoni i roto i tō mātou whakahaere i a mātou e whakarite ana i tētahi huarahi hou ki anamata. Me panoni ngā kaupapa here me ngā whakatau mō te pūtea e tutuki ai te take i tū ai mātou e ai ki te ture. He ara hou e anga whakamua ana kua oti i te Poari te whakarite. Nā konei me mahi ngātahi mātou me ētahi atu puta noa i te whānuitanga o ētahi wāhanga, tae atu ki ngā iwi, ki te rāngai tūmataiti, ki te kāwanatanga, ki ngā whakahaere Māori, me ētahi atu whakahaere pāpāho, tae atu ki ngā reo-irirangi ā-iwi me te hapori Māori e auaha ana. Me auaha tā mātou waihanga pāhotanga, ā, me whakamahi ngā hangarau hou e hono ai ō mātou hapori ki ā mātou pāhotanga. TE WHAKAHĀNGAI I TE WHAKAHAERE E tāpua ana tā Whakaata Māori whakahāngai i a ia anō ki te rautaki e panonitia ai tō mātou whakahaere mō ngā tau e toru ki te rima i tētahi taiao pāpāho-tahiko e tino whakataetae ana, e hihiri ana. Me panoni tō mātou āhua e tutuki ai tā mātou whāinga kia noho ko mātou te tuatahi o ngā pūnaha tahiko e auaha ana mō te auahatanga Māori. Ko te whāinga mātua, kia tū a Whakaata Māori hei kuaha ki te ao Māori. Ko te poutokomanawa, ko te reo me ngā tikanga Māori. I whakahaeretia e mātou ētahi awheawhe rautaki me ētahi hui whakawhiti kōrero me ngā kaimahi i waenga i a Hui-tanguru me Paenga-whāwhā o tēnei tau. Tāpua ana tēnei ki te tautokotanga o te Poari me ngā Pou Mataaho kia whakaahuatia tā mātou rautaki, kia whakatauria hoki ngā whāinga e taea ana te ine e angitu ai a Whakaata Māori hei anamata. E kite ana mātou i te piki haeretanga o te pāhekohekotanga ā-tahiko ki ā mātou hunga mātakitaki, otirā, i ngā tūāhuatanga e pāho inamatatia ana me ngā mātakihanga ā-rokinga whakaata. E tohu ana te pikitanga o te whakamahinga o ā mātou pūnaha tahiko i te tere o te panonitanga e whai nei ngā hunga mātakitaki i ngā hōtaka ahakoa te wā me te wāhi.

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

NGĀ HERENGA Ā-PŪTEA I ngā tau e rua kua hipa ake nei, kāore i angitu tā Whakaata Māori tono i te $12 miriona tāra mai i te pūtea whakataetae mō te whakaputa pāhotanga. He wāhanga tēnei nō te tauira o te whakahekenga tonutanga o te pūtea whakataetae e wātea ana ki tō mātou whakahaere i ngā tau e rima kua hipa ake nei. Kua nekehia tēnei pūtea mō ngā pāhotanga Māori ki ngā kaipāpāho rīroa. Ko ngā pāhotanga e nui ana te whakamahinga o te reo te wāhanga e iti katoa ana tōna whakawhiwhinga ki te pūtea. Hei āpitihanga atu ki te take o te whakahekenga tāpua o ngā pūtea whakataetae, e pērā tonu ana te paeraro o te pūtea e whakapaua ana ki ngā pāhotanga i waihangā i te whakahaere. Tau atu, tau atu, kua piki ake ngā nama, nō reira, piere nuku ana te whai tonu kia kairangi tonu ngā pāhotanga ka waihangā i te taiao e herea nei ngā pūtea. Nā tēnei, kua hiki te whakatūnga o tētahi taiwhanga-pāho tuarua i a Whakaata Māori e whai ana ki te whakamahi i nga taiwhanga pāho o Tāmaki-makau-rau kāore e tino whakamahia ana, e whai take nui ake ai te whakapaunga o ngā pūtea me te wā ki te hanga pāhotanga. E whai ana mātou i tētahi whakaaetanga wā-roa mō te pūtea. Nā tō nāianei tauira o te tuku pūtea mō te tau kotahi anake, kāore e taea e mātou te whakamahere i runga i te mōhio, te hanga pāhotanga hoki e whai take nui ake ai te whakapaunga o ngā pūtea me te wā. Ko te whakataunga o ngā whakahaere pūtea e tohu ana i ngā wero kei mua i a mātou i te taiao pūtea o nāianei. Me āta matawhāiti tonu tā mātou whakahaere i ā mātou rauemi, ā, me mahi tahi me ngā kaituku pūtea mai e pūmau ai te anamata o Whakaata Māori. TE ARONGA WHAKAMUA Ahakoa ngā wero kei mua i a mātou, e anga whakamua ana a Whakaata Māori me ōna manako nui. Nā te pikitanga o te whāia o te reo Māori, e kitea nei i te kaha o te hiahiatia o tō tātou reo e ngā ākonga puta noa i te motu, kua piki ake hoki te hiranga o tā mātou mahi hei kaipāpāho reo Māori. E whakaatu ana mātou i tā te Māori titiro ki ngā take o te wā, ā, whakatakoto ai mātou i tētahi huarahi e whai mōhiotanga ai, e whakangahautia ai hoki te katoa, arā, mai i ērā kātahi anō ka tīmata ki te takahi i te ara o te reo, ki ērā ko rātou nei ō tātou kaikōrero matatau katoa ki te reo. E mihi ana au ki tō mātou poari mō tā rātou ārahitanga i tēnei wā panoni ki tō mātou whakahaere, e mihi ana hoki au ki ngā kaimahi katoa o Whakaata Māori i tō koutou pukumahi me te ngākau nui i tēnei tau kua hipa.

Nā Keith Ikin Chief Executive

Annual Report of Māori Television Service 2018

TE PŪRONGO A TE TĀHUHU RANGAPŪ Chief Executive’s Report INTRODUCTION Māori Television is entering a period of unprecedented change as we shift from a linear television channel focus to becoming the best multi-media digital platform for Māori language content in the world.

Māori Television is entering a period of unprecedented change as we shift from a linear television channel focus to becoming the best multi-media digital platform for Māori language content in the world. Keith Ikin STRATEGIC FOCUS The strategic review of Whakaata Māori has been a significant undertaking for the Board and staff at Whakaata Māori over this year. At the centre of our focus in the new strategy is our commitment to engaging young people and those who are just starting out on their jouney in te reo Māori. Our commitment to our loyal audiences and to those with proficiency in te reo Māori remains steadfast. Our strategy sets out a renewed focus on supporting the widespread acceptance and use of te reo Māori especially amongst young people, whilst continuing to support the Māori language speaking community. The huge growth in interest in te reo Māori across the motu challenges us to respond to the demand for innovative Māori language content. High quality entertaining and informative Māori language content, anywhere and at anytime regardless of where you are at as a speaker of te reo is where we aim to be. To achieve this will require change within our organisation as we set a new path for the future. Change is required to key policy and funding decisions that enable us to achieve our statutory purpose. The Board has set a new path forward. It requires us to work collaboratively with others across a wide range of areas including iwi, private sector, government, Māori organisations and other media organisations including Iwi radio and the Māori creative community. We will need to be innovative in content creation and utilise new technology to connect our communities with our content. ALIGNING THE ORGANISATION Māori Television is undergoing a significant strategic realignment to reposition our organisation for the next three to five years in a very competitive, dynamic, digital media environment. We have to reposition ourselves to achieve our objective to become a digital first innovative platform for Māori creativity. We ran a series of strategy workshops and consultation hui with staff between February and April this year. This has been critical in supporting the Board and Executive to shape our strategy and set measurable targets for the future success of Whakaata Māori. We are seeing increased digital engagement with our audiences particularly with live streamed events and on demand viewing. Our digital growth highlights the rapid change in which audiences are seeking to access content any time any where. FUNDING CONSTRAINTS Over the last two years, Māori Television has not been successful in achieving more than $12million in contestable funding for content production. This continues a pattern of reduction

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in available contestable funding to our organisation over the last five years. This funding for Māori broadcast content has been reallocated to mainstream broadcasters. Funding for fluent Māori language content continues to be the least funded category. In addition to the significant reduction in contestable funds, baseline funding for content created internally has remained the same. Year on year our costs have increased so the challenge to continue to create high value content within a capped funding environment has been extremely challenging. This has resulted in the decision to defer the building of a second studio as Māori Television looks to utilise under utilised studio space in Auckland to create greater efficiencies in content creation. We continue to seek a long term funding agreement. The current model of year by year funding does not allow us to plan with certainty and enable efficiency in content creation. The year's financial result underscores the challenges we are facing in the current funding environment. We must continue to be prudent in the management of our resources and work with our funders to ensure a secure future for Māori Television. FORWARD FOCUS Notwithstanding the challenges before us, Māori Television is looking to the future with high expectations. The surge in interest in te reo Māori expressed by the strong uptake across the country from students seeking to learn our language makes the importance of what we do as a Māori language broadcaster even greater. We provide a Māori perspective on the issues of the day and we provide a platform where anyone, from those first starting out on their language journey to those who are our most accomplished speakers of our language can be informed and entertained. I want to acknowledge our board for their leadership through this transformation phase for our organisation and to thank all of the kaimahi at Whakaata Māori for your hard work and dedication over the past year.

Nā Keith Ikin Chief Executive

Annual Report of Māori Television Service 2018

NGĀ HŌTAKA WHAIHUA 2018 Highlights TE MĀTĀWAI

This is our first year of working with our new stakeholder and establishing accountability and expectations. We look forward to a successful and effective partnership as Crown partners in the revitalisation of te reo Māori me ngā tikanga Māori.

74 68

I have more opportunity to learn about Māori culture

MĀORI GENERAL POPULATION

TE MĀNGAI PĀHO AUDIENCE SURVEY Te Māngai Pāho TNZ Audience Survey released November 2017 shows a significant and positive impact of Māori Television in pursuit of our vision of connecting the world to te Ao Māori and our commitment to contribute to the revitalisation of te reo me ngā tikanga Māori. According to the overall survey results, Māori programming, and Māori Television specifically, continues to play a significant role in terms of providing opportunity and, more importantly, helping to improve both te reo ability and understanding of Māori culture. Impact of Māori Television Among Viewers 2017. Credit Te Māngai Pāho TNZ Audience Survey 2017.

MĀORI GENERAL POPULATION

My te reo Māori ability has improved MĀORI YOUTH

REST OF NZ POPULATION

There is a high agreement among viewers of Māori Television that their te reo ability has improved, as well as their understanding of tikanga Māori. The survey findings show that Māori Television continues to play an important role providing opportunity, and more

MĀORI YOUTH

I am better informed on Māori issues REST OF NZ POPULATION

importantly, helping to improve both te reo ability and understanding of Māori culture. Positive regular viewing of Māori Television continues to slowly build among Māori Youth. Māori rangatahi who are fluent speakers remain the most regular viewers of Māori Television among the language groups. SIGNIFICANT ONLINE DIGITAL AUDIENCES New Zealand On Air - Where the Audiences Are 2018 Māori Television appears for the first time on New Zealand on Demand websites' daily reach. Over the past year, Māori Television’s online audience has consumed more than 44 million minutes of online video across all our platforms, including our website via on demand, livestreaming, our Māori Television connect app and Freeview On Demand. FIRST DIGITAL LOCAL SCRIPTED DRAMA SERIES: AHIKĀROA

I have more opportunity to learn te reo Māori

My knowledge of Māori culture has improved

Ahikāroa, a groundbreaking drama series for Māori Television, and our digital-first, bilingual rangatahi serial drama, debuted in December 2017. Released online first (followed by a linear release in 2018) and pushed via social media, the response was phenomenal. It was the third most viewed online series, with just under 400,000 website video views and an engagement score of over 90 percent. Funded by Te Māngai Pāho and produced by South Pacific Pictures, Ahikāroa was a huge success with high production values, a drama for urban Māori youth, featuring contemporary, eloquent, fluent te reo actors. It was gritty, funny and sexy – and it connected with our rangatahi viewers. NEWS AND CURRENT AFFAIRS Māori Television has had an unprecedented year of success and achievement and innovation from news and current affairs to our weather and climate reporting. Our news and

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Clockwise from top: 2017 General Election coverage; Oriini Kaipara, winner of the Best Māori Affairs reporting award at the Voyager Media Awards; Ahikāroa; 2018 Commonwealth Games coverage.

current affairs team continue to cover Māori stories that deserve acknowledgement, including two Native Affairs senior reporters winning mainstream awards for Best Māori Affairs reporting and Māori Journalist of the Year.

Voyager Media Awards. The national award recognised Native Affairs’ exclusive and ongoing investigation into a Family Court ruling which banned a seven-year-old from any reo Māori education.

Finalist for Best News Coverage at the 2018 NZ TV Awards

Kaipara navigated through multiple legal documents and court restrictions to ensure the story saw the light of day. The ruling was later overturned by the High Court. This story was also nominated in the Best Investigation category for the national awards.

Te Kāea’s 2017 General Election news coverage, dubbed Election Aotearoa, has been nominated for two awards category for Best News Coverage and Best Live Events Coverage. It is the first time that Te Kāea has been recognised in a mainstream television industry awards category. The country saw unrivalled election coverage that mixed outside broadcasts and studio interviews and debates with live audiences. General Election Coverage Māori Television news and current affairs team are finalists for Best Live Event Coverage for its multiple Outside Broadcasts during the 2017 Elections. Our news and current affairs team went from North to South covering the election issues of the day across the country for Māori. We went live, we covered debates around the country including on university campuses. We provided live election night coverage, as well the next day’s post-election morning coverage. Award winning te reo Māori focus and journalism Native Affairs presenter and reporter Oriini Kaipara won Best Māori Affairs reporting at this year’s mainstream

Māori Journalist of the Year, Massey University Journalism Awards Another Native Affairs success is reporter Renee Kahukura Iosefa won Māori Journalist of the Year at Massey Journalism Awards. Renee has since moved to Samoa with her whanau and still files for us from Samoa. Māori Television’s newsroom also had four finalists. We also covered the Commonwealth Games and the 2018 IVF Va'a World Waka Ama Championships in Tahiti. MIGRATION TO HIGH DEFINITION DIGITAL TERRESTRIAL TELEVISION Māori Television migrated from standard to high definition digital terrestial television enhancing the viewing experience for our audiences, ensuring the best quality video across both terrestrial linear television and our online video platforms. AUDIENCE UPTAKE Over the past year, Māori Television’s online audience has consumed more than 44 million minutes of online video across all our platforms, including our website via on

Annual Report of Māori Television Service 2018

Clockwise from top: Launch of the First Kaupapa Māori Weather Map in New Zealand, March 2018; Te Whare Haka; ANZAC Day 2018 coverage; Content and programming promotion.

demand, livestreaming, our Māori Television Connect app and Freeview On Demand. FREEVIEW PLUS We worked on a number of digital offerings as part of our audience-led strategy including a collaborative partnership with Freeview, MediaWorks and TVNZ to develop the new version of FreeviewPlus – Freeview On Demand, a hybrid experience for the viewer providing an aggregated on demand content offering in one place along with access to traditional linear television. CONTENT AND PROGRAMMING Home of Kapa Haka Our digital numbers reinforce Whakaata Māori as the Home of Haka. Online viewership of our combined Kapa Haka properties dominate the Top 10 digital shows, and including live stream numbers approaches close to 2 million website views over the year. The most viewed kapa haka series in this period were the 2018 Kapa Haka Regionals, this being the first year that all 13 events were covered, with over 860,000 website views. ANZAC Day 2018 2018 was the 12th year of dedicated Māori Television coverage commemorating ANZAC Day, and included the dawn service at Auckland War Memorial Museum and the premiere of In Foreign Fields, a new documentary hosted by Witi Ihimaera. Audience figures showed an increase in viewers with more than 372,000 tuning into Māori Television on ANZAC Day.

Hunting and Fishing Continues to Engage Māori Television’s audiences connection to te taiao, te whenua me ngā moana was once again confirmed with fantastic viewing figures across our local hunting, fishing and outdoor programmes. Artefact One of Māori Television’s premier documentary series for 2018, Artefact is an iconic series showcasing the nation’s stories, the six one-hour programmes beautifully captures the time-travelling encounters with Aotearoa’s taonga including our natural environment. Expertly hosted by Dame Anne Salmond, Artefact takes viewers on a journey from our bird life, forests and rivers, to undiscovered provincial store rooms, to some of the world’s most famous museums. Tamariki Hā In 2017 we launched our Tamariki Hā strand, 90 minutes of Te Reo Māori content aimed at our youngest viewers which screens twice a day, each week day. Available on linear television and our website, this strand includes repeat plays of popular cartoons reversioned into Te Reo Māori, such as Ngā Pāpara Kapi. Fresh new local content funded by Te Māngai Pāho and produced by external producers. Internationally Acquired Acquisitions Strong international content continues to top our mostviewed charts. The critically acclaimed acquired series, The Vietnam War, reached the number two spot on our most viewed series list, attracting over 20,000 viewers per episode.

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

Annual Report of MÄ ori Television Service 2018

TE MANA ARATAKI ME NGĀ WHAKAEANGA Governance and Accountability The Board of Māori Television comprises up to seven nonexecutive directors. The responsibility for appointing four of those directors lies with Te Mātāwai. The remaining three directors are appointed by the Crown, represented by the Minister for Māori Development and the Minister of Finance.

with Te Hiku Media he has been numerously recognised at the National Māori Radio Awards.

In the period under review, Jamie Tuuta was appointed to the Board as Chair on 7 May this year. In April this year, Kingi Kiriona (Ngāti Ruanui, Ngāti Kahungunu, Ngāti Apa) joined the Board, replacing Piripi Walker. At the end of last year, business woman Maru Nihoniho (Te Whānau ā Apanui, Ngāti Porou, Ngāi Tahu) was appointed. Maru is an entrepreneur software developer and director of Metia Interactive, replacing Rhonda Kite on the board.

John is the Chief Executive of the Waipareira Trust in West Auckland which provides health and education services to Māori. He brings to the board experience in broadcasting, governance and executive leadership. John is a former Member of Parliament (1999-2005) and served as a Cabinet Minister in the Labour Government from August 2002 until November 2004. Born, raised and educated in Auckland, he has arts and law degrees from the University of Auckland and has worked as a lawyer for the Māori Land Court and the Department of Māori Affairs. He has been a high profile campaigner on behalf of urban Māori and is a Mataawaka member of the Independent Māori Statutory Board. John has been the Chair of the New Zealand Māori Rugby League Board and has also hosted radio and television shows.

JAMIE TUUTA, (Ngāti Mutunga, Ngāti Tama, Te Ati Awa, Ngāti Maru, Taranaki Tuturu) Chair and Crown appointment Jamie is the Māori Trustee and CEO of Te Tumu Paeroa. He is of Ngāti Mutunga, Ngāti Tama, Te Ati Awa, Ngāti Maru and Taranaki Tuturu descent. Jamie has held a range of leadership roles in iwi and Māori development, agribusiness, fishing, investment, health, tourism and education. He was previously chair of the Parininihi ki Waitōtara Incorporation and the Ngāti Mutunga ki Wharekauri Asset Holding Company. He is currently a director of Aotearoa Fisheries Ltd, Taranaki Whānui Ltd and New Plymouth PIF Guardians Ltd. He is the Chair of Te Ohu Kaimoana Trustee Ltd, Te Rūnanga o Ngāti Mutunga, Taranaki Project Mounga and is a board member of Tourism New Zealand. Jamie is a recipient of the 2010 Sir Peter Blake Emerging Leadership Award. He was also awarded the Māori Young Business Leader of the Year Award in 2016. PETER-LUCAS JONES (Ngāti Kahu, Te Rārawa, Ngāi Takoto and Te Aupōuri) Deputy Chair and Te Pūtahi Paoho appointment Peter-Lucas Jones was appointed to the Board in December 2016. He is General Manager of Te Hiku Media, the iwi radio and media centre of the five Far North iwi and is a native speaker of te reo Māori. Peter-Lucas was responsible for developing the Te Reo Māori Strategy for Te Hiku Media and led Te Hiku Media’s curation and archiving of Māori language oral histories of the north. He is a former member of the Arts Council of New Zealand Toi Aotearoa and a Treaty negotiator for Te Aupōuri. His work history includes both Te Taura Whiri i te Reo Māori and the Kōhanga Reo National Trust as Board Secretary. He is currently an executive member of Te Whakaruruhau o Ngā Reo Irirangi Māori o Aotearoa and sits on a number of tribal and community trusts. Peter-Lucas has significant experience in the management and development of digital media platforms in the promotion of te reo Māori. Along

JOHN TAMIHERE (Ngāti Porou, Whakatohea, Tainui) Te Pūtahi Paoho appointment

WHETU FALA (Ngā Rauru, Ngāti Maniapoto, Ngāti Maru ki Taranaki, Samoa, Rotuma) Te Pūtahi Paoho appointment Whetu Fala was appointed to Māori Television’s board in July 2016. She is a well-known figure in the screen and broadcasting industries in Aotearoa and overseas and brings an impressive array of skills including experience in front of and behind the camera, and as a writer. Whetu has a passion for telling our stories using small and large screens. She has produced, directed and edited hundreds of hours of television, including drama, documentaries, reality series and short films in Aotearoa starting at TVNZ in 1988. As a performer, she has appeared in several New Zealand movies, at the Sydney Opera House Australia, in the USA as part of Storytellers International and several Pacific Festivals of the Arts. GLENN HAWKINS (Ngāti Whakaue, Ngāti Maniapoto) Crown Appointment Glenn Hawkins was appointed to the board in August 2016. He has been a Chartered Accountant for more than 20 years. Glenn is passionate about Māori business development and has a strong background in commerce and finance. He has extensive experience with Māori incorporations, Māori land trusts, Treaty-settlement entities, commercial enterprises, service providers and nonprofit organisations. Glenn has held governance roles with a range of commercial, charitable and tribal organisations

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

and is the current Chair of Life Skills for Life Trust and former Chair of Whakaue Farming Ltd. He has an undergraduate degree and a master’s degree in finance from Waikato University. In 2005, he established GHA, a Rotorua-based kaupapa Māori accounting and consulting firm. MARU NIHONIHO

that the affairs of Māori Television are being conducted in accordance with the Board’s policies. The Board has two sub-committees: Audit & Risk During the year, members of the Audit Committee were:

(Te Whānau ā Apanui, Ngāti Porou, Ngāi Tahu)

Glenn Hawkins (Chair)

Crown Appointment

Peter-Lucas Jones

Maru Nihoniho was appointed to the board in August 2017 and is an experienced board director and owner, managing director and producer of the award winning company Metia Interactive in Auckland.

Maru Nihoniho

Metia Interactive produces and designs games and multimedia applications for both entertainment and education. Ms Nihoniho is one of the few female developers in Aotearoa-New Zealand. In 2011, a game developed by Metia Interactive won a World Summit Award in the category e-Health and Environment. The game, SPARX, is an educational tool developed to help young people combat depression and anxiety.

During the year, members of the Remuneration Committee were:

KINGI KIRIONA (Ngāti Ruanui, Ngāti Kahungunu, Ngāti Apa) Te Mātāwai Appointment Kingi Kiriona is a leader of Māori language and cultural development. He is also an orator, a kapa haka exponent, composer and broadcaster. Kingi is the founder and managing director of Tupu Ora Education and Development Ltd, which focuses on building Māori capability for iwi and public sector agencies. He has also been a Māori language consultant and presenter for TVNZ, Te Aho Productions, Kia Mau TV and Kia Ora FM radio. Kingi replaces Māori language advocate Piripi Walker. His appointment began on 10 April 2018 and is for three years. ROLE OF THE BOARD The Board’s governance responsibilities, which are defined in the Māori Television Service (Te Aratuku Whakaata Irirangi Māori) Act 2003, include: • the annual completion of a Statement of Intent which is to be approved by the Minister for Māori Development, the Minister of Finance (the ‘responsible Ministers’) and the Co-chairs of Te Mātāwai; • the annual completion of an Output Agreement which is to be agreed upon with the responsible Ministers; • the provision of quarterly reports against the Output Agreement to the responsible Ministers, then to the Cochairs of Te Mātāwai; • the provision of an Annual Report to the responsible Ministers and to the Co-chairs of Te Mātāwai;

Kingi Kiriona Remuneration

Susan Huria (Independent Chair) Jamie Tuuta Whetu Fala John Tamihere CONFLICTS OF INTEREST A conflicts register is maintained for all board directors. A Director who is interested in a transaction, or proposed transaction of, or other matters relating to Māori Television, must disclose the nature of the interest to the Chair of the Board. If the Director is the Chair, disclosure must be made to the Co-chairs of Te Mātāwai and the responsible Ministers. RISK MANAGEMENT The Board acknowledges that it is ultimately responsible for the management of risks to Māori Television. The Audit & Risk sub-committee meet every two months. The Board has charged the Chief Executive with establishing and operating a prudent risk management programme. PROGRAMME STANDARDS The Board acknowledges Māori Television’s responsibility to comply with programme codes adopted by the Broadcasting Standards Authority (BSA). Māori Television has implemented clear procedures to ensure formal complaints are investigated and appropriate action taken. OCCUPATIONAL HEALTH AND SAFETY Māori Television is committed to maintaining a safe and healthy working environment and has implemented health and safety policies to promote prevention and best practice. GOOD EMPLOYER POLICY

• the delegation to the Chief Executive of responsibility for the efficient and effective administration of the day-today operations of Māori Television.

Māori Television continues to discharge its obligations as a good employer by providing fair employment contracts and policies which reflect proper conduct and allow opportunities for staff to consult on matters of concern to them.

The Board concentrates on setting policy and strategy and holds regular meetings to monitor progress towards the achievement of those strategic objectives and to ensure

In terms of the organisation as a whole, Māori Television has a total staff base of 153 full time employees plus a number of contractors.

Annual Report of Māori Television Service 2018

NGĀ PUTANGA MATUA 2017-2018 Key Outputs 2017-2018 KEY PERFORMANCE INDICATORS AS DEFINED BY THE STATEMENT OF INTENT 2017-18 YTD - ACTUAL Key Outputs

Total

Maori Television Channel

Te Reo Channel

Online

Total

Maori Television Channel

Te Reo Channel

Online

Broadcast Hours

9,326

6,123

3,203

4,995

7,900

5,700

2,200

1,400

Maori Language Across All Hours

72%

59%

97%

Bilingual Website

70%

51%

95%

Bilingual Website

Maori Language Across Prime Time

72%

51%

95%

N/A

70%

51%

95%

N/A

Reo Quality

4.0

Language Learning Hours

2,150

1,611

539

1,600

1,300

300

Programmes for Young People

2,077

1,421

656

1,350

1,050

300

Transmission Platforms

YTD - TARGET

Freeview Terrestrial

Available via online Freeview and Terrestrial broadband services

Freeview Terrestrial

Available via online Freeview and Terrestrial broadband services

Freeview Satellite

Available by connected mobile devices

Freeview Satellite

Available by connected mobile devices

Freeview Satellite

Sky

Freeview Plus HbbTV

Sky

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

KEY PERFORMANCE INDICATORS AS DEFINED BY THE STATEMENT OF INTENT 2016-17 YTD - ACTUAL Key Outputs

Total

Maori Television Channel

Te Reo Channel

Online

Broadcast Hours

8,419

6,038

2,382

2,113

Maori Language Across All Hours

71%

59%

98%

Bilingual Website

Maori Language Across Prime Time

75%

53%

98%

N/A

Reo Quality

4.1

Language Learning Hours

1,823

1,505

318

Programmes for Young People

1,780

1,458

323

Transmission Platforms

Freeview Terrestrial

Available via online Freeview and Terrestrial broadband services

Freeview Satellite

Available by connected mobile devices

Sky

Freeview Plus HbbTV

Annual Report of MÄ ori Television Service 2018

Financial Statements For the year ended 30 June 2018

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

TE TAUĀKĪ HAEPAPATANGA MO TE TAU I EKE I TE 30 O PIRIPI 2018

Statement of Responsibility FOR THE YEAR ENDED 30 JUNE 2018

The Board and management of the Māori Television Service accept responsibility for the preparation of the Financial Statements and Statement of Service Performance and the judgements used in them. The Board and management of the Māori Television Service accepts responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial and non-financial reporting. In the opinion of the Board and management of the Māori Television Service, the Financial Statements and the Statement of Service Performance for the year ended 30 June 2018 fairly reflect the financial position and operations of the Māori Television Service.

Jamie Tuuta Chairman Date: 31 October 2018

Keith Ikin Chief Executive Date: 31 October 2018

Annual Report of Māori Television Service 2018

TE PŪRONGO A TE KAITĀTARI KAUTE MOTUHAKE Independent Auditor's Report TO THE READERS OF MĀORI TELEVISION SERVICE’S FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION FOR THE YEAR ENDED 30 JUNE 2018 The Auditor-General is the auditor of Maori Television Service (the Service). The Auditor-General has appointed me, Karen MacKenzie, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and the performance information of the Service on his behalf. OPINION We have audited: • the financial statements of the Service on pages 24 to 40, that comprise the statement of financial position as at 30 June 2018, the statement of comprehensive revenue and expense, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements including a summary of significant accounting policies and other explanatory information; and • the performance information of the Service on pages 16 to 17 and 22 to 23. In our opinion: • the financial statements of the Service on pages 24 to 40:

- present fairly, in all material respects:

• its financial position as at 30 June 2018; and

• its financial performance and cash flows for the year then ended; and

- comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Reporting Standards; and • the performance information on pages 16 to 17 and 22 to 2 3:

- presents fairly, in all material respects, the Service’s performance for the year ended 30 June 2018, including for each class of reportable outputs:

• its standards of delivery performance achieved as compared with the forecasts included in the statement of intent for the financial year; and

• its actual revenue and output expenses as compared with the forecasts included in the statement of intent for the financial year; and - complies with generally accepted accounting practice in New Zealand. Our audit was completed on 31 October 2018. This is the date at which our opinion is expressed. The basis for our opinion is explained below. In addition, we outline the responsibilities of the Board and our

responsibilities relating to the financial statements and the performance information, we comment on other information, and we explain our independence. BASIS FOR OUR OPINION We carried out our audit in accordance with the AuditorGeneral’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report. We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. RESPONSIBILITIES OF THE BOARD FOR THE FINANCIAL STATEMENTS AND THE PERFORMANCE INFORMATION The Board is responsible on behalf of the Service for preparing financial statements and performance information that are fairly presented and comply with generally accepted accounting practice in New Zealand. The Board is responsible for such internal control as it determines is necessary to enable it to prepare financial statements and performance information that are free from material misstatement, whether due to fraud or error. In preparing the financial statements and the performance information, the Board is responsible on behalf of the Service for assessing the Service’s ability to continue as a going concern. The Board is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless there is an intention to merge or to terminate the activities of the Service, or there is no realistic alternative but to do so. The Board’s responsibilities arise from the Maori Television Services (Te Aratuku Whakaata Irirangi Maori) Act 2003. RESPONSIBILITIES OF THE AUDITOR FOR THE AUDIT OF THE FINANCIAL STATEMENTS AND THE PERFORMANCE INFORMATION Our objectives are to obtain reasonable assurance about whether the financial statements and the performance information, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers, taken on the basis of these financial statements and the performance information.

We communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

For the budget information reported in the financial statements and the performance information, our procedures were limited to checking that the information agreed to the Service’s statement of intent.

OTHER INFORMATION

We did not evaluate the security and controls over the electronic publication of the financial statements and the performance information. As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also: • We identify and assess the risks of material misstatement of the financial statements and the performance information, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Service’s internal control. • We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board. • We evaluate the appropriateness of the reported performance information within the Service’s framework for reporting its performance. • We conclude on the appropriateness of the use of the going concern basis of accounting by the Board and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Service’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements and the performance information or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Service to cease to continue as a going concern.

Our responsibilities arise from the Public Audit Act 2001. The Board is responsible for the other information. The other information comprises the information included on pages 2 to 15, and 19, but does not include the financial statements and the performance information, and our auditor’s report thereon. Our opinion on the financial statements and the performance information does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon. In connection with our audit of the financial statements and the performance information, our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the financial statements and the performance information or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. INDEPENDENCE We are independent of the Service in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1 (Revised): Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board. Other than in our capacity as auditor, we have no relationship with, or interests, in the Service.

Karen MacKenzie Audit New Zealand On behalf of the Auditor-General Auckland, New Zealand

• We evaluate the overall presentation, structure and content of the financial statements and the performance information, including the disclosures, and whether the financial statements and the performance information represent the underlying transactions and events in a manner that achieves fair presentation.

Annual Report of Māori Television Service 2018

TE TAUĀKĪ MAHI Statement of Performance NON-DEPARTMENTAL OUTPUT CLASS Māori Television receives operational funding of $19.264 million from Vote Māori Development. The Minister for Māori Development purchases this class of outputs from Māori Television to: • enable Māori Television to meet its statutory functions, including to contribute to the protection and promotion of te reo me ona tikanga through the provision, in te reo Māori and English, of a high quality, cost effective television service that informs, educates and entertains viewers, and enriches New Zealand’s society, culture and heritage; • pursue the outcomes in its 2017-2018 Statement of Intent; • support the operational costs of Māori Television; and • purchase and produce programmes to be broadcast on Māori Television. Māori Television delivers two outputs through this output class. A description, the cost and performance measures for each output are described below (actual performance shown in italics): Additional performance information (i.e. the outputs delivered against the Output Plan agreed between the Minister of Finance and Minister for Māori Development and Māori Television) is provided on pages 16 and 17 of this annual report.

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

OUTPUT 1 - TELEVISION SERVICE OPERATIONS Description

Performance Measures

To support the operational costs of Māori Television so that it can meet its statutory functions.

Quantity Broadcast a minimum of 7,900 hours of programming for the year (Note 1). Māori Television broadcast a total 9,326 hours (2017: 8,419 hours) during the year. Broadcast programmes mainly in te reo Māori with a minimum of 70 percent in te reo content for the year. 72% (2017: 71%) of all programmes broadcast on Māori Television were in te reo.

Cost

2018 Actual: $15.488million 2018 Budget: $15.308 million 2017 Actual: $17.048 million

Note 1: The target of 7,900 hours is as per Statement of Intent. It differs slightly from the target set in the Estimates of Appropriations of 7,100 hours.

OUTPUT 2 - TRANSMISSION COVERAGE Description

Performance Measures

Provide broadcast services that are technically available throughout New Zealand and are accessible to as many people as is reasonably and economically possible.

Quantity Provide free-to-air transmission to at least 87% of New Zealand’s population via free-to-air digital terrestrial and to 100% of New Zealand via free-to-air digital satellite. Māori Television Channel: • Digital satellite 100% (2017: 100%) • Digital terrestrial 87% (2017: 87%) Te Reo Channel: • Digital satellite 100% (2017: 100%) • Digital terrestrial 87% (2017: 87%)

Cost

2018 Actual: $3.776 million 2018 Budget: $3.956 million 2017 Actual: $2.216 million

Total Output Costs equal Total Revenue from the Crown per Statement of Comprehensive Revenue and Expenses

2018 Actual: $19.264 million 2018 Budget: $19.264 million 2017 Actual: $19.264 million

Annual Report of Māori Television Service 2018

TE TAUĀKĪ O NGĀ WHIWHINGA MONI WHĀNUI Statement of Comprehensive Revenue and Expense FOR THE YEAR ENDED 30 JUNE 2018 Actual 2018 $000s

Budget 2018 $000s

Actual 2017 $000s

Revenue from the Crown

19,264

Te Māngai Pāho Production Funding

16,120

762

579

998

1,550

756

245

153

105

37,312

36,953

37,069

Note Non-Exchange Revenue

Other Production Funding Exchange Revenue Advertising Revenue Interest Revenue Other Revenue TOTAL REVENUE Expenditure Kaimahi Costs

13,934

14,370

14,337

Depreciation & Non Programme Amortisation Expense

3,170

2,491

3,224

145

Finance Costs Programme Costs incl. Amortisation

11,555

10,622

10,877

Operating Costs

9,969

9,323

8,966

38,628

36,951

37,404

TOTAL EXPENDITURE Surplus / (Deficit)

(1,316)

Add/(Less): Other Comprehensive Income

TOTAL COMPREHENSIVE REVENUE & EXPENSE

(1,316)

(335)

TE TAUĀKĪ NEKENEKE TŪTANGA Statement of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2018 Actual 2018 $000s

Budget 2018 $000s

Actual 2017 $000s

Balance at 1 July

19,257

20,290

19,592

Total Comprehensive Revenue and Expense

(1,316)

BALANCE AT 30 JUNE

17,941

Note

The accompanying notes form part of these financial statements.

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

2 20,292

(335) 19,257

TE TAUĀKĪ TŪNGA PŪTEA Statement of Financial Position AS AT 30 JUNE 2018 Note

Actual 2018 $000s

Budget 2018 $000s

Actual 2017 $000s

Public Equity General Funds

17,941

20,292

19,257

TOTAL PUBLIC EQUITY

17,941

20,292

19,257

1,509

1,265

5,789

201

445

Represented by: ASSETS Current Assets Cash and Cash Equivalents

GST Receivable Bank Deposits

200

Trade and Other Receivables

4,410

958

4,023

Intangibles - Programme Rights

4,475

3,942

3,422

10,795

6,165

13,879

TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, Plant and Equipment

12,540

21,205

10,822

Intangibles - Computer Software

250

520

TOTAL NON-CURRENT ASSETS

12,790

21,205

11,342

TOTAL ASSETS

23,585

27,370

25,221

LIABILITIES Current Liabilities Trade and Other Payables

2,651

2,513

3,871

Employee Entitlements

1,202

1,113

4,565

Term Loans Unearned Revenue

Provisions

131

4,026

7,078

5,017

1,618

947

TOTAL NON-CURRENT LIABILITIES

1,618

947

TOTAL LIABILITIES

5,644

7,078

5,964

17,941

20,292

19,257

TOTAL CURRENT LIABILITIES Non Current Liabilities Provisions

NET ASSETS

The accompanying notes form part of these financial statements.

Annual Report of Māori Television Service 2018

TE TAUĀKĪ KAPEWHITI Statement of Cash Flows FOR THE YEAR ENDED 30 JUNE 2018 Actual 2018 $000s

Budget 2018 $000s

Actual 2017 $000s

Receipts from Crown Revenue

19,264

Te Māngai Pāho Production Funding

16,120

16,320

849

102

430

872

525

1,817

105

Note Cash Flows from Operating Activities Cash was provided from:

Other Production Funding Interest Received Advertising Revenue Other Income Cash was applied to: Payments to Employees

(13,846)

(14,340)

Payments to Suppliers

(11,677)

(37,786)

(11,435)

Interest Paid Goods and Services Tax (Net) NET CASH FROM OPERATING ACTIVITIES

244

11,867

(585)

11,038

171

1,000

9,000

Investment - Term Deposits

(1,000)

Purchase of Property, Plant and Equipment

(6,532)

Cash from Investing Activities Proceeds from the sales of Property, Plant and Equipment Cash was applied to: Proceeds from Term Deposit Maturity

(6,649)

(7,065)

Settlement of Make Good Liability

(75)

(900)

Purchase of Computer Software

(52)

(525)

(9,659)

(9,151)

Purchase of Intangible Assets NET CASH FLOWS FROM INVESTING ACTIVITIES

(16,147)

(6,649)

(8,641)

Loan drawdowns/(repayments)

4,565

NET CASH FLOWS FROM FINANCING ACTIVITIES

4,565

(4,280)

(2,669)

2,397

5,789

3,934

3,392

1,509

1,265

5,789

Cash Flows from Financing Activities Cash was applied to:

Cash and Cash Equivalents Net Increase/(Decrease) At the beginning of the year CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes. The accompanying notes form part of these financial statements.

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2018 accounting policies that are consistent with those adopted by Māori Television for the preparation of the financial statements.

1. STATEMENT OF ACCOUNTING POLICIES The financial statements of Māori Television are for the year ended 30 June 2018. The financial statements were authorised by the Board of Directors on 31 October 2018. The following accounting policies that materially affect the measurement of financial performance, financial position and cash flows have been applied: (a) Reporting Entity The Māori Television Service is a statutory corporation incorporated in New Zealand under the Māori Television Service Act 2003 and is domiciled in New Zealand. The purpose of Māori Television is to contribute to the protection and to promote te reo Māori me ngā tikanga Māori and as such the objective is to provide a service to the public of New Zealand as opposed to that of making a financial return. Accordingly Māori Television has designated itself as a Tier 1 public benefit entity (PBE) for financial reporting purposes. (b) Statement of Compliance These financial statements have been prepared in accordance with section 41 of the Māori Television Act 2003 which includes the requirement to comply with New Zealand generally accepted accounting practice (“NZ GAAP”). The financial statements have been prepared in accordance with and comply with Tier 1 PBE accounting standards. The financial statements have been prepared on a going concern basis, and the accounting policies have been applied consistently throughout the period. (c) Measurement Base The financial statements have been prepared on an historical cost basis. (d) Changes in Accounting Policy An accounting policy for recognition of operating lease was updated to reflect the effect of any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management. (e) Functional and Presentation Currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($’000). The functional currency of Māori Television is New Zealand dollars. (f) Forecast Financial Statements

Budget Figures

The budget figures are derived from the Statement of Intent as approved by the Board at the beginning of the financial year. The budget figures have been prepared in accordance with PBE accounting standards, using

(g) Foreign Currencies Transactions denominated in a foreign currency are converted at the exchange rate ruling at the date of the transaction. At balance date foreign currency monetary assets and liabilities are converted at closing exchange rates and exchange variations arising from these transaction items are included in the surplus or deficit. (h) Revenue

Revenue from the Crown

Māori Television is primarily funded through revenue received from the Crown, which is restricted in its use for the purpose of Māori Television meeting its objectives as specified in the Statement of Intent and Output Plan. Māori Television considers there are no conditions attached to the funding and it is recognised as revenue at the point of entitlement. This is considered to be the start of the appropriation period to which the funding relates.

Te Māngai Pāho Production Funding

Māori Television receives funding from Te Māngai Pāho, which is restricted in its use for the purpose of Māori Television meeting its objectives as specified in the Agreement for Television Production Funding. Māori Television considers there are conditions attached to the funding and this funding is recognised as revenue when the conditions are satisfied.

Other Production Funding

Production funding from Te Māngai Pāho and others (e.g. NZ On Air) is recognised when earned.

Advertising revenue

The sale of advertising spots provided to third parties on commercial terms are exchange transactions. Advertising revenue is recognised when advertising spots have gone to air.

Interest revenue

Interest revenue is recognised when earned.

(i) Leases

Operating Leases

Leases that do not transfer substantially all the risks and rewards incidental to ownership of an asset to Māori Television are classified as operating leases. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the term of the lease in the surplus or deficit.

Annual Report of Māori Television Service 2018

Lease expenses attributable to bringing the assets to the location and condition necessary to be operated in the manner intended are capitalised and added to the cost of assets. (j) Cash and Cash Equivalents

(n) Financial Instruments

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term, highly liquid investments, with original maturities of three months or less.

Māori Television is party to financial instrument arrangements including cash and bank, term deposits and accounts receivable as part of its every day operations, which are recognised in the Statement of Financial Position. Revenue and expenditure in relation to all financial instruments are recognised in the surplus or deficit. Except for those items covered by a separate accounting policy, all financial instruments are shown at their estimated fair value.

(k) Bank Deposits Investments in bank deposits are initially measured at the amount invested. After initial recognition investments in bank deposits are measured at amortised cost using the effective interest method. At balance date Māori Television assesses whether there is any objective evidence that an investment is impaired. For bank deposits, impairment is established when there is objective evidence that Māori Television will not be able to collect amounts due according to the original terms of the deposit. Significant financial difficulties of the bank, probability that the bank will enter into bankruptcy, and default in payments are considered indicators that the deposit is impaired. (l) Trade and Other Receivables Trade and other receivables are measured at the amount due, less any provision for impairment. Impairment of a receivable is established when there is objective evidence that Māori Television will not be able to collect amounts due according to the original terms of the receivable. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the surplus or deficit. When the receivable is uncollectible, it is written off against the allowance account for receivables. Overdue receivables that have been renegotiated are reclassified as current (i.e. not past due). (m) Provisions A provision is recognised for future expenditure of uncertain amount or timing when: • there is a present obligation (either legal or constructive) as a result of a past event;

• it is probable that an outflow of future economic benefits or service potential will be required to settle the obligation; and

• a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value of the expenditure expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of

money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included in “finance costs”.

(o) Intangibles Software: Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with the development of the Māori Television website are capitalised. Costs associated with the maintenance of the Māori Television website are recognised as an expense when incurred.

Programme Rights:

All programmes are valued at their cost to Māori Television. Cost is defined as total cost paid by Māori Television not including any Māori Television overheads. Third party contributions for individual programmes are recorded in the Statement of Comprehensive Income as revenue. Under PBE IPSAS 31, Māori Television recognises the following types of programmes at cost and amortises each programme over its economic useful life: • Internally produced programmes Programme Rights – Internal);

(Note

• Commissioned programmes (Note 9a Programme Rights – External); and

• Acquired programmes produced by third party producers (Note 9a Programme Rights – External). An annual impairment assessment is carried out on all intangibles recognised by Māori Television. (p) Amortisation The carrying value of an intangible with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the surplus or deficit. The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows: Website 2 years

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

Acquired computer software

3 years

Programme Rights

Programmes which primarily deal with current events, and/or are transmitted within a very short-time of their production, and/or are unlikely to be replayed at any future time (e.g. genres such as current affairs, sport, live events) are fully amortised at the time of their first transmission. Programmes with longer shelf lives, that are intended to be transmitted several times over a number of months or years, are amortised as they are broadcast. The amortisation formula may be varied depending on the specifics of the programme but the default amortisation policy is based on 60% first play, 20% second play and 20% third play. (q) Property, Plant and Equipment and Depreciation Property, plant and equipment is stated at historical cost less accumulated depreciation and impairment losses. Depreciation is calculated on a straight line basis to allocate the cost of the assets by equal instalments to an estimated residual value at the end of the economic life of the asset. Important depreciation periods are:

Plant & Equipment

3 - 10 years

Building Fitout

5 - 20 years

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. (r) Impairment of non-financial assets

Currently there is no provision in employment contracts for long service leave or retirement leave. (u) Goods and Services Tax (GST) All items in the financial statements are presented exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to the Inland Revenue Department (IRD) is included as part of receivables or payables in the statement of financial position. The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and exclusive of GST.

contingencies

are

disclosed

(v) Statement of Cash Flows Cash and cash equivalents means cash balances on hand, held in bank accounts, on-demand deposits and term deposits with original maturities of less than three months. Operating activities include cash received from all income sources of Māori Television and records the cash payments made for the supply of goods and services.

Property, plant, equipment and intangibles that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

Investing activities are those activities relating to the acquisition and disposal of property plant and equipment, intangibles and bank deposits greater than three months.

Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where Māori Television would, if deprived of the asset, replace its remaining future economic benefits or service potential.

Liquidity risk is the risk that Māori Television will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through and an adequate amount of committed credit facilities. Māori Television aims to maintain flexibility in funding by keeping committed credit lines available.

If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit. (s) Trade and Other Payables Trade and other payables are recorded at their face value. (t) Employee Entitlements Employee entitlements that Māori Television expects to be settled within 12 months of balance date are measured at undiscounted nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date and annual leave earned, but not yet taken at balance date.

Financing activities are those activities relating to changes in debt or capital structure. (w) Liquidity Risk - Management of Liquidity Risk

(x) Capital Management Māori Television’s capital is its equity, which comprise retained earnings and is represented by net assets. (y) Interest in Jointly Controlled Entity The interest in a joint venture entity is accounted for in the financial statements using the equity method of accounting. Under the equity method, Māori Television’s share of the results of the joint venture is recognised in the Statement of Comprehensive Revenue and Expense and the share of movements in reserves is recognised in the Statement of Financial Position. (z) Critical accounting estimates and assumptions In preparing these financial statements Māori Television

Annual Report of Māori Television Service 2018

has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Property, Plant and Equipment Useful Lives and Residual Value At each balance date Māori Television reviews the useful lives and residual values of its property, plant and equipment. Assessing the appropriateness of useful life and residual value estimates of property, plant and equipment requires Māori Television to consider a number of factors such as the physical condition of the asset, expected period of use of the asset by Māori Television, and expected disposal proceeds from the future sale of the asset. An incorrect estimate of the useful life or residual value will impact the depreciation expense recognised in the surplus or deficit, and carrying amount of the asset in the statement of financial position. Māori Television minimises the risk of this estimation uncertainty by:

• physical inspection of assets;

• asset replacement programmes;

• review of second hand market prices for similar assets; and

•

Programme Rights Useful Lives and Residual Value

Māori Television has exercised its judgment on the appropriate classification of property and equipment leases and, has determined all of their lease arrangements are operating leases.

Māori Television has exercised its judgement when determining that programmes with value in terms of te reo Māori (Māori language) me nga tikanga Māori (Māori culture) are retained in the programme library. When the following criteria are satisfied, Māori Television derecognises:

• The cost price has been fully amortised.

• The broadcast rights period has expired.

• The number of authorised plays has been reached.

• Māori Television has no rights to any future exploitation of the programme for non-broadcast uses.

• Māori Television does not have the right to add the programme to its archive.

• Māori Television had no role in its conception or production, and therefore no intellectual property rights.

• The programme has no future usage in regard to the promotion te reo Māori (Māori language) me ngā tikanga Māori (Māori culture).

analysis of prior asset sales.

At each balance date Māori Television reviews the values of its programme rights. Assessing the appropriateness of the useful life and residual value estimates of programme rights is based on historical experience and the expected period of use of the programme right. Adjustments to useful lives are made when considered necessary.

To derecognise the programmes, Māori Television adjusts the cost and accumulated amortisation of the programmes. In these instances, there is no impact on the surplus or deficit, or net book value of intangible assets.

(aa) Critical judgements in applying Māori Television’s accounting policies Management has exercised the following critical judgments in applying Māori Television’s accounting policies for the year ended 30 June 2018:

Leases Classification

Determining whether a lease agreement is a finance or an operating lease requires judgement as to whether the agreement transfers substantially all the risks and rewards of ownership to Māori Television. Judgement is required on various aspects that include, but are not limited to, the fair value of the leased asset, the economic life of the leased asset, whether or not to include renewal options in the lease term and determining an appropriate discount rate to calculate the present value of the minimum lease payments. Classification as a finance lease means the asset is recognised in the statement of financial position as property, plant and equipment, whereas for an operating lease no such asset is recognised.

Programme Values

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

2. TAXATION

5. CASH AND CASH EQUIVALENTS

Māori Television is exempt from Income Tax by virtue of being registered as a charitable entity under the Charities Act 2005 and therefore no provision has been made in the financial statements. 3. KAIMAHI COSTS 2018 $000s

2017 $000s

13,444

13,873

Board Members’ fees

167

145

Employer Contributions to Defined Contribution Plans

323

319

13,934

14,337

2018 $000s

2017 $000s

Salaries and Wages

TOTAL 4. EXPENDITURE

2018

$000s

2017

$000s

Cash at Bank and On Hand

1,509

5,789

NET CASH AND CASH EQUIVALENTS FOR THE PURPOSES OF THE STATEMENT OF CASH FLOWS

1,509

5,789

The carrying value of cash at bank and short-term deposits with maturity dates of three months or less approximates their fair value. 6. BANK DEPOSITS Investments in bank deposits have maturities greater than three months and less than 12 months from the date of acquisition. Impairment There are no impairment provisions for bank deposits. No bank deposits are past due or impaired (2017: nil).

The net surplus is after charging for:

Fair Value

Fees paid to Auditors

The carrying amounts of bank deposits approximate their fair value.

Attest Audit Fees

Other Operating Costs include: Bad and Doubtful Debts Rental Expense on Operating Leases

27 1,139

244

2,307

1,764

Additional depreciation due to relocation (Note 8)

527

1,197

Computer Software (Note 9b)

336

263

3,170

3,224

8,508

7,924

131

139

Programme Overhead Costs

2,159

2,260

Programme Promotion Costs

757

554

11,555

10,877

TOTAL DEPRECIATION & NON-PROGRAMME AMORTISATION Programme Costs incl. Amortisation Programme Amortisation (Note 9a) Provision for Write Off (Note 9a)

TOTAL PROGRAMME COSTS INCL. AMORTISATION

The maturity dates and weighted average effective interest rates for bank deposits are as follows: 2018

1,039

Depreciation & Non-Programme Amortisation: Property, Plant & Equipment (Note 8)

Maturity Analysis and Effective Interest Rates of Bank Deposits

$000s

2017

$000s

Bank Deposits with Maturities greater than 3 months and less than 12 months

200

TOTAL BANK DEPOSITS

200

3.23%

3.48%

Weighted Average Effective Interest Rate

The bank deposits of $200,000 has been pledged to a licensed financial institution for a bank guarantee issued to the Wellington Regional Chamber of Commerce for an open Carnet (a customs permit for Maori Television’s television cameras and other equipment be taken across international borders without custom duties) facility.

Annual Report of Māori Television Service 2018

7. TRADE AND OTHER RECEIVABLES 2018

2017

$000s

Receivables

849

Less Provision for Impairment

(33)

(256)

Prepayments

731

455

2,356

507

388

TOTAL

4,410

4,023

Exchange Transactions

2,054

1,667

Non Exchange Transactions

2,356

TOTAL

4,410

4,023

Te Māngai Paho Receivable Other

1,080

Included in others is an amount of $491,046 (2017:$384,050) due from the joint venture company as disclosed in note 22. The amount represents Maori Television’s share of contribution towards the cost of developing the electronic program guide software by the joint venture company. It is unsecured, interest free and has no fixed term of repayment. The carrying value of receivables approximates their fair value. As at 30 June 2018 and 2017 all receivables have been assessed for impairment and appropriate provisions applied as detailed below: 2018

2017

$000s

Gross

Not past due

$000s

Impairment

Net

Gross

Impairment

Net

712

729

(100)

629

Past Due 1-30 days

119

(100)

Past Due 31-60 days

150

(50)

100

Past Due 61-90 days

(33)

(6)

849

(33)

816

1,080

(256)

824

Past Due > 91 days TOTAL

The provision for impairment has been calculated based on expected losses for Māori Television’s pool of debtors. Expected losses have been determined based on an analysis of Māori Television’s losses in previous periods and review of specific debtors. Movement in the provision for impairment of receivables is as follows: 2018

2017

$000s

Balance at 1 July Additional Provisions made during the year

$000s

(256)

(11)

(27)

(11)

Less: Provision reversed on recovery

Receivables written off during the period

250

TOTAL

(33)

(256)

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

8. PROPERTY, PLANT AND EQUIPMENT Movements for each class of property, plant and equipment are as follows: Plant & Equipment

Building Fitout

Work in Progress

Total

Cost

$000s

Balance at 1 July 2016

19,249

Reclassification

(3)

8,070

27,319

8,442

9,131

Additions

605

Disposals

(89)

(222)

(311)

BALANCE AT 30 JUNE 2017

19,762

7,935

8,442

36,139

Balance at 1 July 2017

19,762

7,935

8,442

36,139

3,577

4,865

(8,442)

Reclassification Transferred to Software

(22)

Additions

3,226

1,394

4,620

Disposals

(16,094)

(7,937)

(24,031)

BALANCE AT 30 JUNE 2018

10,449

6,257

16,706

16,351

6,095

22,446

1,273

491

1,764

1,174

1,197

Accumulated Depreciation Balance at 1 July 2016 Reclassification Depreciation Expense Additional depreciation due to relocation Disposals

(2)

(89)

BALANCE AT 30 JUNE 2017

17,556

7,762

25,318

Balance at 1 July 2017

17,556

7,762

25,318

(8)

1,847

460

2,307

526

527

Reclassification Transferred to Software Depreciation Expense Additional depreciation due to relocation Depreciation on Disposals BALANCE AT 30 JUNE 2018

(16,041)

(7,937)

(23,978)

3,880

286

4,166

At 30 June 2017

2,206

173

8,442

10,821

AT 30 JUNE 2018

6,569

5,971

12,540

Carrying Amounts

A total amount of $22.912 million of building fitout, plant and equipment have been derecognised during the financial year. These assets located at the Newmarket office were purchased from 2003 to 2012 and have been fully depreciated. They do not have any future economic benefits or service potential as they are either obsolete or no longer exist. The cost and their corresponding accumulated depreciation have been included under disposals. There are no restrictions over the title of property, plant and equipment. No property, plant and equipment assets are pledged as security for liabilities. Property, plant, and equipment in the course of construction is nil (2017: $nil).

Annual Report of Māori Television Service 2018

9A. INTANGIBLES - PROGRAMME RIGHTS Programme Rights Internal

Programme Rights External

Total

$000s

Year ended 30 June 2018 At 1 July 2017 net of accumulated amortisation

1,596

1,826

3,422

Additions

8,166

1,526

9,692

(6,831)

(1,677)

(8,508)

2,931

1,675

4,606

Amortisation charge Less Provision for Write Off

CLOSING NET BOOK VALUE

(131)

2,931

1,544

4,475

127,295

8,326

135,621

(124,364)

(6,651)

(131,015)

(131)

As at 30 June 2018 Cost Accumulated Amortisation Less Provision for Write Off

TOTAL

2,931

1,544

4,475

Programme Rights Internal

Programme Rights External

Total

$000's

Year ended 30 June 2017 At 1 July 2016 net of accumulated amortisation

1,224

1,587

2,811

Additions

6,776

1,898

8,674

(6,404)

(1,520)

(7,924)

1,596

1,965

3,562

Amortisation charge Less Provision for Write Off

CLOSING NET BOOK VALUE

(139)

1,596

1,826

3,422

119,129

6,939

126,068

(117,533)

(4,974)

(122,507)

As at 30 June 2017 Cost Accumulated Amortisation Less Provision for Write Off

TOTAL The balances for individual programme rights are the sum of accumulated costs to date less the amounts charged for amortisation as those programmes are broadcast. The amounts charged for amortisation are based on an average expected cost over all the episodes in a series, whereas the costs of producing each individual episode in that series can vary considerably. It is expected that at the end of the useful life of the programme that the amortisation charge will fairly reflect the final cost of the programme, but this can give rise to credit balances for programme rights at any moment in time, including balance date. This is most common with internally produced programme series which are still only part way through production at balance date. There are no restrictions over the title of intangible assets.

1,596

(139) 1,826

(139) 3,422

No intangible assets are pledged as security for liabilities. Externally acquired programme rights are subject to the copyright restrictions of the distributing/production entity. Heritage Assets Māori Television Service considers its fully amortised Māori programming as a heritage asset because of the historical and cultural qualities held within that programming that contributes to the knowledge and culture of te Reo Māori. The intrinsic cultural value of these assets is invaluable and there is insufficient information to assist in valuing these assets, therefore the carrying value of these assets is nil. The gross costs and gross amortisation are not written off and are maintained to recognise the investment made in this programming.

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

9B. INTANGIBLES - COMPUTER SOFTWARE 2018

12. UNEARNED REVENUE 2018

2017

$000s

Cost Balance at 1 July

3,207

2,682

Additions

525

Disposals

Transferred from Property, Plant & Equipment Disposals

(1,717)

BALANCE AT 30 JUNE

1,564

3,207

Amortisation expense

2,687

2,424

336

263

Transferred from Property, Plant & Equipment Disposals

(1,717)

BALANCE AT 30 JUNE CARRYING AMOUNT AT 30 JUNE

1,314

2,687

250

520

TOTAL

All unearned revenue has arisen from exchange transactions. 13. PROVISIONS 2018

Rent Holiday Amount due within 12 months

131

TOTAL

131

1,110

Add: Additional Provision

Less: Provision Written Back

(210)

Non-current Lease Make Good Opening Balance

Less: Liability Settled CLOSING BALANCE

2017

Trade Creditors

1,571

1,608

Accrued Expenses

1,080

2,263

TOTAL

2,651

3,871

11. EMPLOYEE ENTITLEMENTS 2018 $000s

2017 $000s

Annual Leave

786

696

Accrued Wages

402

408

1,202

1,113

ACC Levies TOTAL

(900) 75

Opening Balance

872

Add: Additional Provision

877

872

1,749

872

Less: Amount due within 12 months

$000s

(75) -

10. TRADE AND OTHER PAYABLES

2018

$000s

Current

Rent Holiday

$000s

2017

$000s

A total amount of $1.717 million of software has been derecognised during the financial year. These software do not have any future economic benefits or service potential as they are either obsolete or no longer exist.

Trade and other payables are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value approximates their fair value. The below creditors are payable under exchange transactions.

$000s

Advertising Sales

Accumulated amortisation Balance at 1 July

2017

$000s

(131)

Amount due after 12 months

1,618

872

TOTAL

1,618

947

Māori Television Service entered into an agreement on 17 October 2016 to lease offices and carparks at East Tamaki (“premises”) for an initial period of 15 years to house its operations. Māori Television Service was allowed to occupy the premises without obligation to pay for 20 months from the commencement date on 25 November 2016. Māori Television received a further incentive totaling $321,000 from the landlord as capital contribution towards improving the building fit-out. The premises were not ready for use on vacant possession. The first group of employees were only relocated to the premises on 24 July 2017 after the necessary building fitout was completed. Hence, the rent attributable to the period 25 November 2016 to 30 June 2017 of $572,000 was capitalised and added to the cost of building fit-out with the corresponding amount credited to provisions Rent Holiday. The abovementioned capital contribution of $321,000 was also credited to Rent Holiday provision. These will be amortised over the lease term.

Annual Report of Māori Television Service 2018

14. RECONCILIATION OF THE NET SURPLUS FROM OPERATIONS WITH THE NET CASH FLOWS FROM OPERATING ACTIVITIES 2018

2017

$000s

Net Surplus / (Deficit) for the Year

$000s

(1,316)

(335)

Add/(Less) Non Cash Movements Depreciation - Property, Plant & Equipment

2,834

2,961

Amortisation Programme Rights

8,508

7,924

Provision for Write Off Programme Rights

131

139

Amortisation Computer Software

336

263

Provision for Doubtful Debts / Bad Debts Written Off

15. RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT PERSONNEL Māori Television has been established as a body corporate with perpetual succession whose key stakeholders are the Crown and Māori. The Government is the principal source of funding for Māori Television. Māori Television enters into transactions with government departments, state-owned enterprises and other Crown entities. Those transactions that occur within a normal supplier or client relationship on terms and conditions no more or less favourable than those which it is reasonable to expect Māori Television would have adopted if dealing with that entity at arm’s length in the same circumstances have not been disclosed as related party transactions. During the year all related party transactions were entered into on an arm’s length basis. This was also the case in 2017. Key Management Personnel Remuneration 2018

$000s

244

Increase in Provision for Rent Holiday

857

Renumeration

Gain on disposal of Property, Plant and Equipment

(127)

Full-time equivalent members

Increase in Make Good Provision

11,250

11,221

Movement in Working Capital (Increase) in Trade and Other Receivables

(391)

(1,319)

Decrease in GST Receivable

244

1,094

Increase in Trade and Other Payables

665

206

Increase/(Decrease) in Employee Entitlements

(139)

Increase/(Decrease) in Unearned Income

NET CASH FLOWS FROM OPERATING ACTIVITIES

11,867

(25) 11,038

2018 FTE

2017

$000s

2017 FTE

Board Members 167

145 1.81

1.66

Executive Group Renumeration

1,785

Full-time equivalent members

1,683 7.35

7.00

Senior Management Renumeration

1,961

Full-time equivalent members TOTAL KEY MANAGEMENT PERSONNEL REMUNERATION TOTAL FULL TIME EQUIVALENT PERSONNEL

1,880 15.62

3,913

15.00

3,708

24.78

23.66

The full-time equivalent for Board members has been determined based on the frequency and length of Board meetings and the estimated time for Board members to prepare for meetings. Directors’ and Officers’ Indemnity Insurance Māori Television has arranged Directors’ and Officers’ liability insurance cover with QBE Insurance (International) Limited for $10m ($7.5m for loss and $2.5m for defence costs). This cover is effected for all Directors and Officers of Māori Television.

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

16. EMPLOYEES’ REMUNERATION The following numbers of employees received remuneration and other benefits in their capacity as employees the total value of which exceeded $100,000 for the year. 2018 No.

2017 No.

$100,001 - $110,000

$110,001 - $120,000

$120,001 - $130,000

$130,001 - $140,000

$140,001 - $150,000

$150,001 - $160,000

$160,001 - $170,000

$170,001 - $180,000

$180,001 - $190,000

$190,001 - $200,000

$200,001 - $210,000

$210,001 - $220,000

$220,001 - $230,000

$230,001 - $240,000

$300,001 - $310,000

17. BOARD FEES Board members earned the following fees during the period: Note

Date Finished

Jamie Tuuta (Chair) Peter Lucas Jones (Deputy Chair) Glenn Hawkins (Chair – Audit and Risk Committee)

(ii)

John Tamihere Whetu Fala

(i)

Maru Eva Nihoniho Kingi Kiriona

2018

2017

$000s

Rhonda Kite

30-Jan-17

Piripi Walker

12-Nov-17

Georgina Te Heuheu (Former Chair)

27-May-18

Waihoroi Shortland

14-Oct-16

Cathy Dewes

30-Jun-16

Donna Gardiner

12-Apr-16

167

145

TOTAL (i) The amount includes an overprovision of $1,599 from the last financial year which has been deducted against the fees payable of $21,300 for the current year. (ii) This amount includes the payment of an underprovision of $1,973 in respect of fees payable for the previous financial year.

Annual Report of Māori Television Service 2018

18. EMPLOYMENT MATTERS

Non-Cancellable Operating Lease Commitments

During the year, four (2017: seven) employees received compensation and other benefits in relation to cessation totalling $223,368 (2017: $304,045).

2017

$000s

Not later than one year

1,018

412

There were no significant post balance date events as at the date of these financial statements.

Later than one not later than 2 years

1,090

1,106

20. COMMITMENTS AND OPERATING LEASES

Later than 2 but not later than 5 years

3,196

2,155

Later than 5 years

8,878

10,654

14,182

14,327

19. POST BALANCE DATE EVENTS

2018 $000s Transmission and Satellite Linking

2017 $000s

TOTAL

19,033

1,530

21. CONTINGENCIES

5,619

Contingent Assets There are no contingent assets as at 30 June 2018 (2017: nil).

Programme - Internal

4,609

3,528

Programme - External

559

431

Others

TOTAL

24,291

11,108

East Tamaki Office Building CAPEX

Transmission and Satellite Linking Māori Television has entered into long-term agreements with Kordia Ltd and Johnston, Dick and Associates Ltd for the transmission of its programmes on the digital satellite and digital terrestrial platforms. 2018

$000s

2017

$000s

Contingent Liabilities There is one legal proceeding against Māori Television Service in relation to a defamation claim. As at yearend the potential liability to Māori Television Service is unknown (2017: nil). 22. INTEREST IN JOINT VENTURE Māori Television has a 17.7% interest in FreeView Limited, an incorporated joint venture between Television New Zealand, TVWorks Limited, Māori Television Service and Radio New Zealand Limited. FreeView Limited is audited by Ernst Young and has a balance date of 30 June. Maori Television Services hold 177 shares in FreeView Limited, for which the share capital is uncalled and unpaid. The carrying amount of the company’s investment in FreeView Limited is $nil ($2017: nil).

Not later than one year

3,314

1,041

Later than one not later than 2 years

3,151

293

Later than 2 but not later than 5 years

The following table provides summarised financial information relating to the FreeView Limited joint venture.

9,127

196

Later than 5 years

3,441

Extract from the joint venture Statement of Financial Position

19,033

1,530

TOTAL

2018

$000s

2018

2017

$000s

Programme Production Production of a number of programmes had commenced but were not completed at year end. Expenditure required to complete production is recorded as a commitment.

Current Assets

2,370

836

Non-Current Assets

1,429

1,003

TOTAL ASSETS

3,799

1,839

Programme Acquisitions Contracts for the purchase of broadcast rights in certain programmes have been entered into but full payment has not yet been made and is not yet due, pending certain events, e.g. delivery of materials, first transmission, etc.

Current Liabilities

3,799

1,839

3,799

1,839

NET ASSETS

Māori Television’s share of joint venture’s net assets

Non-Current Liabilities TOTAL LIABILITIES

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

Extract from the joint venture Statement of Comprehensive Income 2018 $000s

2017 $000s

Expenditure Items

As per SOI 2017-2020

As per Statement of Comprehensive Reveniue and Expense

Income

2,592

2,773

Expenses

2,592

2,773

Programme Costs incl. Amortisation

8,630,000

10,622,000

NET SURPLUS

Operations Costs

11,315,000

9,323,000

Māori Television’s share of joint venture’s net surplus

TOTAL ($)

19,945,000

There are no contingent liabilities relating to Māori Television’s interest in the joint venture other than as disclosed and no contingent liabilities or capital commitments of FreeView Limited itself. 23. SIGNIFICANT BUDGET VARIANCES (a) There is no budget for Other Production Funding Income as the nature of this income is highly unpredictable, difficult to estimate and uncertain. (b) Advertising revenue is substantially lower than budget due to the competitive advertising market. The declining trend in linear television viewership as a result of the availability of other digital platforms to watch content has adversely affected our sales. (c) Kaimahi Costs is marginally lower than budget due to lower staff count. (d) Depreciation & Amortisation showed an adverse variance due largely to accelerated depreciation for the remaining fixed assets from the Newmarket building as they are no longer in use or suitable for use at the new office. (e) Programme Costs incl. Amortisation is higher than budget due to receipt of extra funding for production spent for programme production and studio hire cost. (f) Operating costs recorded an adverse variance due mainly to the East Tamaki office’s rent. There was no budget provided for the East Tamaki office as it was under rent holiday for the financial year. However, a provision has been made for the entire year in the surplus or deficit. (g) The adverse variance in the General Funds compared to budget is due essentially to the operating deficit sustained during the financial year. (h) Trade and Other Receivables are significantly higher than budget due principally to an amount accrued for services rendered to a major funder but not payable at the balance date.

24. FINANCIAL INSTRUMENTS Māori Television is risk averse and seeks to minimise its exposure from its treasury activities. Its policies do not allow any transactions which are speculative in nature to be entered into. Credit Risk Credit risk is the risk that a third party will default on its obligation to Māori Television, causing Māori Television to incur a loss. Financial instruments which potentially subject the company to risk consist principally of cash, short term investments and trade receivables. Māori Television has a minimal credit risk in its holdings of various financial instruments. These instruments include cash, bank deposits and accounts receivable. Māori Television believes that these policies reduce the risk of any loss which could arise from its investment activities. Māori Television does not require any collateral or security to support financial instruments. There is no significant concentration of credit risk. The maximum amount of credit risk for each class is the carrying amount in the Statement of Financial Position. Liquidity Risk Liquidity risk is the risk that Māori Television will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Māori Television aims to maintain flexibility in funding by keeping committed credit lines available. Currency Risk Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.

(i) The budget for Property, Plant and Equipment includes a substantial amount for the setting up of a studio at the new East Tamaki Office. The budget was not utilised resulting in a significantly lower fixed asset amount compared to budget.

At balance date Māori Television had exposure to currency risk in regard to the purchase of television programmes from overseas which are primarily denominated in US dollars (see the Commitments Note). Māori Television does not enter into forward exchange contracts to hedge any exposure.

(j) Since the budget allocated for the setting up a studio at the new East Tamaki Office was not utilised, there is no requirement for the borrowings to finance the expenditure.

Interest Rate Risk

(k) Budget figures for programme costs including amortisation and operating costs have been regrouped to make figure comparable, as follows:

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. There are no interest rate options or interest rate swap options in place as at 30 June 2018. The Board does not consider that there is any significant interest exposure on Māori Television’s investments.

Annual Report of Māori Television Service 2018

24A. FINANCIAL INSTRUMENT CATEGORIES

24B. FINANCIAL INSTRUMENT RISKS

The accounting policies for financial instruments have been applied to the line items below:

Maximum exposure to credit risk The maximum exposure for each class of financial instrument is as follows:

2018

$000s

2017

$000s

FINANCIAL ASSETS Loans & Receivables Cash & Cash Equivalents

1,509

5,788

200

Trade and Other Receivables

3,679

3,183

TOTAL LOANS & RECEIVABLES

5,388

9,171

Bank Deposits

FINANCIAL LIABILITIES

2018

$000s

2017

$000s

Cash at Bank and Bank Deposits

1,709

5,988

Debtors and Other Receivables

3,679

3,183

TOTAL CREDIT RISK

5,388

9,171

Credit quality of financial assets The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor’s credit ratings (if available) or to historical information about counterparty default rates: 2018

Financial Liabilities at Amortised Cost

$000s

Trade and Other Payables

2,651

3,871

TOTAL FINANCIAL LIABILITIES AT AMORTISED COST

Counterparties with credit ratings:

2,651

3,871

Cash at Bank and Bank Deposits

2017

$000s

AA-

1,709

5,988

TOTAL CASH AT BANK AND BANK DEPOSITS

1,709

5,988

Existing counterparty with no defaults in the past

3,679

3,183

TOTAL DEBTORS AND OTHER RECEIVABLES

3,679

3,183

Counterparties without credit ratings: Debtors and Other Receivables

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018

Annual Report of MÄ ori Television Service 2018

LOCATION 433 East Tāmaki Road East Tāmaki, Auckland 2013 Aotearoa - New Zealand POSTAL PO Box 64-341 East Tāmaki, Auckland 2163 Aotearoa - New Zealand Tel: + 64 9 539 7000 Fax: + 64 9 539 7199 www.maoritelevision.com

TE PŪRONGO Ā-TAU A TE ARATUKU WHAKAATA IRIRANGI MĀORI 2018