Profit target ahead for Fiji TV

FIJI Television Limited has announced its first operat ing profit, three years ahead of forecast.

The company’s chairman, Laisenia

Qarase, described 1998 as a landmark, reflecting well on Fiji TV, its man agement and employees.

Although the quality of service has often been criticised by Fiji’s view ing public, Qarase said it was the highest in the developing Pacific. He told shareholders at Fiji TV’s annual meeting in December that the profit of F$ 105,916 was “small but significant”. Initial

projections showed prof

itability would not be attained till 2001.

“But the rapid and

sure growth of our business has enabled the company to deliver results over Fsl million better than budget for three consecutive years,” he said.

The profit for the company, which effec tively is a monopoly in Fiji, came through operating revenue of F 55,576,560. Qarase said this indicated a positive response by the marketplace to Fiji TV and its pro

grammes. Another factor is that the compa ny is in a strong position to weather the cur rent difficult economic climate because of an absence of any significant long-term debt. Qarase said the directors had decided

not to issue a dividend. The profit would be recognised as retained earnings that would reduce accumulated losses.

Strong growth in advertising revenue to Fs4.l million was a key factor in profit per formance, combined with stringent cost control. Qarase said that in 1999 the com pany planned to complete its coverage of the Coral Coast and extend to Taveuni and

$(000) 1997/8 1996/7 1995/6 1994/5 Net income 5,577 3,808 3,151 2,447 Expenses 5,471 5,201 4,269 4,487 Profit/(loss) 106 (1,393) (1,118) (2,040)

Northern Lau. This would take the TV 1 sig nal to about 85 per cent of the population.

The company is also planning to move ahead with plans for the introduction of a

third Sky subscription channel.

Qarase was critical of decisions by the Ministry of Communications on the compa ny’s exclusive licence and its licence fee.

He said actions of the Ministry in reneging on the exclusive licence and increasing the fee by 24,900 per cent without consultation, were the greatest threat faced by the com pany and its shareholders.

Qarase said the exclusive licence was a key element in shareholders’ decisions to invest in Fiji TV. He stressed the impor tance of a stable policy environment for investment. It was ironic, he said, that while government was continually seeking for eign investment, the actions of the ministry threatened equally important investment by

Fiji citizens.

Fiji TV, he said, remained open to any negotiated settlement that protected the right of shareholders.

He likened the proposal from Pacific Group to a hostile take-over attempt. It was particularly important, Qarase said, for minority shareholders to be vigilant in pro tecting their rights.

He told the annual meeting that after four years as chairman and in view of other pressing professional obligations, he had decided not to offer himself for re-election.

Qarase is succeeded by Isoa Kaloumaira, managing director of the Fiji Development Bank, which holds 59 per cent of the shares in Fiji TV. ■