TVNZ profit plunges

People are watching more TV shows than ever before, but how they are watching has changed dramatically, TVNZ says.

TVNZ’s net profit after tax fell from $7.92 million to $1.72m in the year to June 30.

Despite the drop in profit, and a $12m fall in ad revenue, the broadcaster said the annual results showed “robust financial management”.

Revenue was down year-on-year from $341.69m to $327.63m.

TVNZ has no plans to pay a dividend to the Government at this time.

Operating expenses fell from $315.6 to $313.57m.

TVNZ interim chief executive Brent McAnulty told BusinessDesk that public sector and commercial advertisers eased back this calendar year.

Ebitdaf was down from $26.09m to $14.07m.

The company said it expected inflationary pressures and slower economic conditions to continue this financial year.

“TVNZ’s FY23 result demonstrates robust financial management despite challenging economic headwinds,” the company said this morning.

“Declines in TV revenue were buoyed by a 14 per cent year-on-year increase in digital revenue,” the broadcaster added.

TVNZ said it was focused on ensuring digital growth outpaced any anticipated declines in broadcast TV, as the business transitioned its content offering online.

“People are watching more TV shows than ever before, but how they are watching has changed dramatically.

“Strong audience numbers helped TVNZ outperform the market this past year,” McAnulty said in a statement this morning.

TVNZ's interim chief executive said Celebrity Treasure Island was among highlights for audiences this year. Photo / TVNZ

He said local content including Te Matatini, new seasons of Celebrity Treasure Island and T20 cricket internationals resonated with viewers.

The company said a major project in FY23 involved approaching the market to get a new technology partner to set up and deliver a new internet protocol platform.

“This will move the business from broadcast-based technologies to a cloud-based engine,” the company added.

Just a fortnight ago, radio and outdoor advertising business MediaWorks revealed a $110m impairment and a net loss of $9.7m.

Herald publisher NZME in August reported a first-half net profit after tax of $2m, down 76 per cent on the first six months of 2022.

The company at that time cited inflation, weak consumer and business confidence, and a feeble real estate market for lower revenue in that half-year.