Profits delivered by Government-owned broadcaster TVNZ are down year-on-year as the company failed to offset the impact of a weak advertising environment.
Despite growth in digital media and a stronger share of television advertising revenue, the company's after tax net profit dropped to to $19.8 million in the six months to December 31, down from $20.8 million in the same period the year prior.
No interim dividend was paid, nor was it at the end of the 2014 financial year.
It followed the company's decision in September 2013 TVNZ to sell a package of land and buildings to SkyCity and its extensive refurbishment of TVNZ's Victoria St headquarters.
Due to the cost involved, the shareholding ministers advised that they would forgo future dividends equivalent to the refurbishment and relocation costs, less the amount received for the buildings sold to SkyCity.
In normal circumstances the company's shareholders receive funds surplus to TVNZ's
investment and operating requirements - typically 70 per cent of net profit after tax.
In a statement, the company said its six-month result announced today put it
on track to achieve the full year financial targets set out in its 2015 Statement of Intent.
Chief executive Kevin Kenrick said the business was moving into a strong second half, leveraging recent investments in upgrading digital technology platforms to re-launch enhanced versions of TVNZ OnDemand and onenews.co.nz.
Digital media was continuing to perform strongly and TVNZ OnDemand video streams up 38 per cent year on year - hitting a record in the month of October with over 6 million streams, Kenrick said.
Digital media revenue rose 34 per cent compared with the same period in the previous year and was buoyed by the lift in online viewing.
However, as was the case with other media groups, TVNZ's advertising revenue was down due to softer demand, Kenrick said.
The revaluation of currency hedging held at 31 December 2014 - noted in the financial report as an unrealised net foreign exchange loss of $3.6 million - also had a negative impact due to the strength of the NZ dollar.
The company's share of television advertising revenue increased slightly, from 60.9 per cent to 61.6 per cent.
Television audience share also strengthened, led by News and Current Affairs programming and peak time entertainment shows.
ONE News was the most watched programme for the period with an average total audience of more than 650,000 viewers.
Breakfast and Seven Sharp also increased audience share over the 6 months, and Sunday was the most watched current affairs show with an average audience of more than 600,000 New Zealanders per episode.
The transfer of the TVNZ archive to the Crown was also completed during the six-month period.