Many of the companies which reported the biggest financial losses in 2019 are facing major structural changes to their industries which is making for challenging operating conditions, experts say.
Analysis of the Deloitte Top 200 companies show Sky Network Television made the biggest loss in 2019 at $608 million, followed by Fonterra at $605m.
State-owned KiwiRail made the third largest loss at $325m and NZ Post was fourth on $121m. The top five biggest losses was rounded out by media company Stuff which posted a $74m loss.
Mark Lister, head of private wealth research at Craigs Investment Partners, said: "What these names have in common is - for one reason or another - they are facing significant change in their industry.
"These are structural changes and these businesses have been on the losing end."
Lister said Sky TV had been facing increasing headwinds in recent years with competition from streaming content services and the loss of the Rugby World Cup and cricket rights to rival Spark Sport.
While it was not a surprise that Sky was doing it tough, the level of deterioration had been a shock, Lister said.
"The fact they are near the bottom is not surprising - the fact they deteriorated as they did was."
But Lister reminded that both Sky TV and Fonterra reported losses that were accounting losses based on write-downs in the value of assets.
Milford Asset Management portfolio manager Sam Trethewey said Fonterra had made write-downs across its business.
"It shows the history and track record of acquiring offshore businesses has been poor."
The core business had been hit by a higher milk price and there had been a shake-up in its management.
Trethewey said the new chief executive was very aware of the challenges but it would be a tough turnaround.
Fonterra is owned by its farmer shareholders and it is they who will bear the brunt of the loss.
Shane Solly, portfolio manager at Harbour Asset Management, said Fonterra was a big company and it "took time to turn around the milk tanker".
While there was still strong demand for dairy products it was about how that was delivered to markets, he added.
Solly said KiwiRail had potential with the talk of the Port of Auckland moving and parts of its line receiving upgrades.
"But again a bit of catchup on investment is required."
Solly said New Zealand Post was grappling with the decline in letters while having to invest more in its parcel business while Stuff was facing challenges over the shift in readers from print to online and the decline in advertisers.
But not all of the financial losses were bad news. Accounting software company Xero also made the list of the biggest losses at number eight, making a loss of $27m.
Lister said Xero made a loss but was doing so in order to grow its business quickly.
"The fact that Xero is in the list tells you that the headline profit or loss is not the only way to measure a successful business."
Xero was a star performer which was trading at all-time highs, he said.
He said the share price was based on the future earnings of the company not its current financial loss.
Topping the companies which made the biggest profits last year is Shell with $1.397 billion.
The oil company's profit rose 273 per cent on the prior year after lower depreciation, amortisation and tax expenses. Shell New Zealand is owned by Austrian company OMV.
Kaingaroa Timberlands had the second largest profit on $584m. Its ownership spans iwi, the NZ Super fund, Canada's Public sector pension board and an investment fund related to Harvard University.
Outside of the top two the space is dominated by large NZX-listed companies; Auckland International Airport, Spark and Mercury. The airport made $524m in its 2019 financial year. This was despite a drop in its profit from 2018 when it made $650m.
Lister said all three of the listed companies had had good years.
"Part of the reason they made the list is just from their sheer size. They are not necessarily the most profitable. Those are three heavyweights on the New Zealand market."
Both Auckland Airport and Mercury were steady infrastructure businesses while Spark had a strong recurring income, he said.
Mercury was also one of the top performers in terms of share price rises this year, benefiting from investors' strong desire for dividend-paying stocks in the wake of falling interest rates.
Lister said there was not one reason why the big profit-makers had done well - it was company specific. "It has been a pretty buoyant year. Although things have slowed these companies haven't been in the types of industries affected.
"They have really just been able to ride the wave of the solid economy."
Trethewey said Spark had reported its highest profit since splitting from chorus.
But 2020 could be a tougher year even for the top performers.
Mercury faced a big issue ahead with the New Zealand Aluminium Smelter and Rio Tinto's review of its operation.
Rio Tinto is expected to provide an update on the review by the end of March.
Auckland Airport is also forecasting subdued growth as it sees a slowdown in tourist numbers.
"Spark has a pretty stable earnings base. It's more about how does Vodafone do - does it come out with more discounted offers?"
Solly said those businesses going through tough times would take time to turn around.
"Some have got to make some tough decisions. That could put at risk their historical businesses."
Missing in action from the list is the New Zealand arms of the banks. ANZ made a $1.899b profit this year which outstripped Shell while the other three major banks - ASB, BNZ and Westpac - all made around $1 billion each.
Profits at the banks are expected to be squeezed in 2020 as interest rates remain low and new capital increases come into force.