ITN records highest ever profit of Rs. 44.8 m

by Nadira Gunatilleke

The Independent Television Network (ITN), has recorded its highest net profit of Rs. 44.89 million last year (2004) in its 26 year history. Chairman Newton Gunaratne said that this performance proves that any State institution can earn profits through effective management.

Gunaratne said that at present many believe that State institutions are not productive and cannot earn profits. "They say therefore such State institutions should be privatised. But ITN has proved that this notion is entirely wrong. Any State institution can earn profits through effective management."

According to Gunaratne last year's profit before tax was recorded at Rs. 56.04 million. "We achieved this target through strict financial management and by cutting down unnecessary expenses. In 2003 the company's net profit was only Rs. 2.45 million and the 2004 profit is a 20-fold increase compared to the previous year."

He pointed out that the total operational expenditure of the company in 2004 is Rs. 374.51 million. In 2000 ITN was upgraded at a cost of Rs. 100 million provided by the Government. The company bought technical equipment spending Rs. 94 million in 2001.

Transmission towers were built at a cost of Rs. 31 million at Hunnasgiriya and Karagahathenna in the same year. In 2004 Rs. 73 million was spent to develop the company but all those were company earned funds. ITN has purchased Rs. 20 million worth of cameras, recording machines and some essential spare parts to repair some equipments using those funds.

Gunaratne explained how ITN faced numerous difficulties for a period of six months in 2003 when the Government Trustee and the Finance Ministry declared that the appointments made by President Chandrika Bandaranaike Kumaratunga were illegal following the appointment of a new management.

ITN expects to expand its transmission countrywide by next year. Viewers can expect more valuable and interesting programs through ITN in the coming years including programs of world famous National Geographic Channel, Gunaratne said.