Financial Results

The Corporation and its controlled entities ended the 2018-19 financial year with a surplus of $0.673 million.

The Corporation’s total assets increased during the financial year from $278.720 million to $281.996 million.

The level of contributed equity by Government remained constant at $110.403 million.

SBS generated 30 per cent of its total operating revenue from the sale of goods and services in 2018-19.

Government Revenue

In 2018-19, SBS received a total appropriation of $281.726 million from the Australian Government. In 2019-20, SBS will receive a total of $290.054 million from the Australian Government.

Triennial Funding

The Federal Budget 2019 was announced on 2 April 2019. SBS’s budget was confirmed for the 2019-20 to 2021-22 financial years, following completion of the triennial funding process.

Major Investing and Financing Activities

SBS actively and responsibly manages its finances. This involves preparation of estimates for appropriation and equity injection funding, taking into account movements in the inflation parameter applicable to SBS. Cash holdings are monitored throughout the year and where funds are not immediately required for operational activities, investments are made.

All investments have been made in accordance with the investing requirements of the Special Broadcasting Service Act 1991 and the Public Governance, Performance and Accountability Act 2013.

Level of Overhead

SBS regularly conducts benchmarking exercises to ensure it is meeting or exceeding industry standards in regard to expenditure on corporate overheads. In 2018-19 the percentage of SBS’s total expenditure spent on administrative overheads remains at a low 7.5 per cent. This reflects the concerted effort by SBS to improve efficiencies in this area to deliver more funds to content creation.

SBS Business

In October 2009 SBS formed, with the ABC, the National DAB Licence Company Ltd. The company was formed in order to obtain a category 3 digital radio multiplex transmitter licence as provided for by section 102E of the Radiocommunications Act 1992. SBS and the ABC are the only shareholders in the company.

Related Entity Transactions

SBS has procedures in place to identify and report on any related party transactions. These are set out in note 3.3 to the SBS Financial Statements that follow.

SBS Board Committees

The SBS Board has three standing committees for considering a wide range of detailed issues and making recommendations for consideration by the Board. This is in addition to the Community Advisory Committee (refer to the Inspired Communities section).

Audit and Risk Committee

The SBS Audit and Risk Committee met four times during the year and considered the findings and recommendations of audits conducted by both the Australian National Audit Office (ANAO) and SBS’s internal auditor.

The Audit and Risk Committee also considered and gave direction on a wide range of issues, including approval of the annual internal audit program, investment and financing activities, risk management framework and strategy, and financial statements audit.

Codes Review Committee

The Codes Review Committee considers proposed amendments and other issues relating to the SBS Codes of Practice and the SBS Editorial Guidelines. The Committee met four times to consider amendments to the SBS Codes of Practice relating to: gambling advertising during live sporting events on SBS’s online platforms (Code 5 ‘Advertising and sponsorship’); and the delivery of consumer advice for M and MA15+ television programs and the daytime time zone for M programs on SBS and SBS VICELAND (Code 4 ‘Television Classification Code). During the year the Committee also commenced discussions on the review process for the SBS Codes of Practice 2014.

SBS Codes of Practice amendments

The following amendments were made to the SBS Codes of Practice as a result of committee meetings during the year:

• Removal of the rules for the promotion of betting odds and commercials relating to betting and gambling on SBS’s digital platforms, following the enactment of the Broadcasting Services (Online Content Service Provider) Rules 2018;
• An amendment to the way in which consumer advice for M and MA15+ television programs is delivered, from audio and visual advice before the program commences to a prominent and legible graphic appearing on screen at the start of the program;
• Implementation of new M daytime time zones for the SBS and SBS VICELAND channels, which can now show M content between noon and 3pm on any day of the week, including school holiday periods; and
• The addition of a reference to SBS World Movies as being subject to the same M classification time zone provisions as SBS and SBS VICELAND, from 1 July 2019.

Remuneration Committee

The Remuneration Committee decides the SBS policies for remuneration of the Managing Director and the SBS Executive. The Committee met three times during the year. A change to membership saw Christine Zeitz join the Committee, with Dr Bulent Hass Dellal stepping down.