State-owned broadcaster TVNZ has revealed an after-tax profit for the past year of $2.1 million - a near 90 per cent fall on the previous year.

The company will pay its Government shareholder a $1.47 million dividend.

Chief executive Rick Ellis said the operating environment for the financial year was "one of the most challenging in history" for advertising-reliant media.

He said that without the cost reduction measures of the last six months the company would have been unable to remain profitable.

"Like many advertising-reliant media companies TVNZ's revenues were tracking well for the first half of the financial year, but after Christmas the impact of the recession on advertising spend took hold," he said.

"The company responded rapidly and well to the situation facing us, and it's only because of this prompt response that we have maintained a relatively strong position."

TVNZ reported total revenue of $384.8m and operating earnings of $10.1m for the year. Advertising revenue was $298.4m, a $17.1m - a 5.4 per cent fall on the prior year.

Operating earnings were $10.1m, a decline of $16.9m on the prior year. This decline was primarily attributed to the $17.1m advertising revenue drop.

TVNZ says it increased its television advertising revenue share from 58.9 per cent to 60.9 per cent.