TVNZ says its full-year net profit after tax was $2.9 million, down $2.2 million (-44%) for the 12 months to June 30. The broadcaster pins the loss on the tumbling NZ dollar.

Total revenue declined $7.8m (-2.5%) to $310.7m, with single-digit declines in TV advertising partially offset by double-digit growth in online advertising revenue.

TVNZ CEO Kevin Kenrick says the company's financial results are reflective of challenging market conditions.

The state-owned broadcaster also confirmed it will cease dividend payments to the government "due to increased investment in local content and digital capabilities."

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TVNZ declined to field a question about whether Kenrick had fielded a bonus (last year he received a $460,054 bonus, taking his total remuneration to $1.43m). A spokeswoman said that issue would be addressed in the broadcaster's annual report, due to be tabled mid-September.

Earlier, TVNZ warned it is heading for a $17.1m loss in 2020, on flat revenue as it pursued a restructure.

"We expect our revenue next year to be pretty stable. We expect some softening in TV but that will be offset by the Rugby World Cup and what we do in OnDemand," Kenrick told the Herald.

The pending loss has raised speculation that TVNZ 1 could be made non-commercial, or the broadcaster merged with RNZ or Maori TV.

Earlier this month, Prime Minister Jacinda Ardern said the government would address TVNZ's situation before the end of this year.

Today, Kenrick was focussing on the positive.

"TVNZ has sufficient cash on hand to fund the planned transformation over the next three years," Kenrick said.

Operating expenditure was down by $7.8 million (2.7%) to $286.1m due to a year-on-year reduction in programming costs.

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EBITDAF was flat at $24.6 million.

And although TVNZ's traditional business continued its decline in FY2019, online pepped up (if not yet enough to take up the slack).

TVNZ OnDemand achieved 80% year on year growth in viewership to record 184 million video streams for the period, reaching 141,145 daily). And it delivered year-on-year increases in weekly audience reach (+38%) and advertising revenue (+31%). The broadcaster would not put a dollar figure for that 31 per cent increase, however.

"And in the lead up to Rugby World Cup 2019 coverage in partnership with Spark Sport, TVNZ has upgraded studio facilities with 'state of the art' augmented reality and video wall capabilities and has fully trialled and tested this new sports production capability," Kenrick said.

TVNZ chief executive Kevin Kenrick. Photo / Supplied.
TVNZ chief executive Kevin Kenrick. Photo / Supplied.

"New Zealanders have responded positively to the availability of live sport back on free-to-air television. TVNZ's coverage of the T20 Black Clash was the most-watched live cricket event in the last 10 years, reaching more than a million viewers over the course of the match."

TVNZ has also benefitted from the Spark board's push for Spark Sport to have a secure safety net.

The state-owned broadcaster will show all of the All Blacks pool games, plus the AB's assumed quarter-final, on a one-hour delay.

And it will screen both semis and the final live.

The Herald will carry an interview with Kenrick later today [UPDATE: Read TVNZ can stand on its own two feet says CEO Kevin Kenrick, revealing his three-point plan].

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