TVNZ presenters Hilary Barry, Simon Dallow, Jenny May Clarkson and John Campbell. Photo / TVNZ
TVNZ has completed a remarkable financial turnaround over the past 12 months, announcing a $25.7 million net profit after tax ($10.7m adjusted) today, and a dividend to taxpayers for the first time in three years.
The turnaround - from an $85m net loss after tax in the previous 12 months - follows major cost-cutting across the organisation, including roles at every level and the loss of shows such as Sunday and Fair Go.
The final reported net profit after tax of $25.7m includes net positive, non-cash impairment adjustments.
On an adjusted basis, the net profit after tax was $10.7m - at the top end of its earlier guidance - compared with a net adjusted loss of $22.9m in the previous 12 months.
TVNZ also confirmed a dividend of $3.1m for its full financial year, to June 30, 2025. It is the first time since 2022 that the state broadcaster has paid a dividend.
The results came despite a 2.7% drop in revenue, to $281.1m. The company said “challenging trading conditions and market disruption” persisted into the 2025 financial year, across the media sector.
TVNZ chief executive Jodi O’Donnell told Media Insider she was “really proud” of the result.
“It’s been a challenging year for lots of businesses, but to be in the position that we are ... we’ve reset the operating base, been in the position to deliver a small profit, but also really proud that we can pay a dividend to the shareholder as well.
“At the same time as setting ourselves up for years two and three of our [digital] strategy, which is really where our big capital investment happens. So, yes, very proud.
“It’s been a tough year in media. Being able to share this result with [staff] this morning is awesome.”
TVNZ said that, despite an overall drop in revenue, digital advertising income grew 12.7% year-on-year, making up a quarter of total advertising revenue.
“TVNZ’s digital advertising growth outperformed the market in FY25 and is forecast to grow to a third of total advertising revenue in FY26.”
It said it had reduced underlying costs by $41.2m, “with additional accounting adjustments related to the FY24 impairment bringing total costs to $261.2m for FY25.”
O’Donnell expected a slight drop in total revenue for this financial year, before longer-term growth by the end of the 2028 financial year.
TVNZ is one year into a five-year digital-first strategy, designed to boost digital audiences and revenue.
O’Donnell said the business had made “huge strides” toward its digital-first goals. “We’re entering the new financial year with momentum and determination. We have an exciting 12 months ahead of us.”
A major, backend overhaul of its TVNZ+ platform is under way to improve the user experience.
The broadcaster will soon also have the ability to introduce pay television - and is doing so for the Fifa World Cup next year.
Kiwis will be able to watch All Whites games free, but will need to pay an as-yet unspecified fee for a tournament pass to see every World Cup game.
With its digital transformation under way, TVNZ reiterated today that it expected to deliver an underlying operations earnings (ebit) loss for the next two financial years.
“A significant one-off investment in technology projects to drive strategic outcomes for the business will impact the results,” it said in a statement.
“This critical investment continues to be self-funded through cash reserves. Outside of this investment, the newly reset cost base of the business and forecasted revenue will remain in lockstep.”
New digital technology would also allow advertisers to access self-service, allowing them “to buy TV just as easily as they do any other digital advertising propositions”.
O’Donnell added: “TVNZ’s transition to a digital-first operating model is well under way. FY26 and FY27 [are] where this investment will impact our bottom line. This is a once-in-a-generation opportunity to invest in TVNZ and secure a vibrant and sustainable future.”
Meanwhile, on operational matters, she said the new, four-show season of The Chase NZ would appear in the final quarter, likely October or November.
TVNZ would announce the cost of the Fifa World Cup tournament pass next year, once it had worked through operational matters and had seen the final draw in December.
The company had put its best foot forward for Olympic rights and was expecting to hear back on these in the next month, said O’Donnell.
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME, including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.
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