FIJI TELEVISION LIMITED ANNUAL REPORT 2018 FIJI TELEVISION LIMITED ANNUAL REPORT 2018

CHAIRMAN’S REVIEW

Dear Shareholders,

On behalf of the board of directors of Fiji Television Limited, I am pleased to present to you the financial year 2018 Annual Report. The company has performed well given the challenging business environment we operate in, especially given the changes in the Media Industry. The results for Fiji TV are reflective of the work of the Board, Management and Staff and we will continue to improve further as we progress into the next financial year.

The current year has begun well with the investment by Fiji TV in the upgrade of our equipment in line with the evolution of the technology that the TV industry is experiencing. This investment in new equipment has definitely seen a boost in the broadcasting standards of our services.

During the year, Fiji TV launched its new website for viewers, to enable better browsing for information from local shows, news, current affairs & sports, information on Fiji TV and contacts. It even allows the viewers to view their favorite programs on archives should they miss it at the normal scheduled time.

Another significant achievement for Fiji TV was the launch of Fiji’s first ever Television APP which gives viewers access to Fiji Television’s services in the palm of their hands, from latest news, local programs, sports, TV program schedules, LIVESTREAM and much more.

Financial Performance

For the year ending 30th June 2018, the consolidated group net profit after tax recorded was $819,248 in comparison to the net profit of $575,134 recorded for the previous year.

Total Group Revenue for financial year 2018 stood at $11.860m in comparison to $10.334 for 2017 financial year. This is a 14 percent growth in the revenue compared to the same period last year.

Fiji TV’s net total assets increased by 2 percent from the previous year and stood at $14.833m as at balance date.

During the last financial year, the company declared and paid first an interim dividend of $412,000 in September 2017 with a final dividend of $309,000 in February 2018.

The Future

Being the longest running free-to-air television station in Fiji, this year marks the completion of 24 years of compelling content being broadcasted to the viewers in Fiji and in the Pacific Islands.

Fiji TV‘s revenue and profit has both grown over the financial year and we intend to improve this even further in the coming year. A lot more focus is on major operational cost savings in order for us to achieve a much higher bottom line which will increase shareholder value for the future.

I take this time to thank my fellow board members, management and staff of Fiji Television Limited who have worked hand-in-hand to deliver the credible results in a challenging industry. I also thank our viewers, advertisers and suppliers who have worked with us throughout the financial year and we look forward to another great year ahead.

R.G. (Bob) Lyon

Chairman

Q1: Management Accounting Information

Read the attached Chairman’s Review of Fiji Television Limited and answer the questions that follow.

REQUIRED

1. Briefly discuss the business strategy depicted in the article that Fiji Television Limited uses to gain competitive advantage, which resulted in an increase financial performance.                                                  (5 marks)

2. One of the changes in the business environment that Fiji Television Limited is facing is a challenging business environment due to changes in the Media Industry. Discuss how management accounting information may have contributed to Fiji Television Limited’s financial performance.          

Answer rating: 100% (QA)

1Answer Fiji television Ltd has performed a really well in spite of the business challenges in the e... View the full answer