TVNZ profits down, outlook bleak

State-owned broadcaster TVNZ, which is axing jobs and cutting programming to save money, has warned that conditions would be tough for much of this year.

TVNZ has just announced a fall in after-tax profit for the six months ended December 31 of $2.4 million, to $18.2 million.

Earnings before interest, tax and financial instruments also fell, to $27.7m from $32.3m on a year earlier, the company said today.

The second half of the financial year would also be difficult as a result of declining advertising revenue, which had been hitting media companies across the board since January, chief executive Rick Ellis said.

The result was considered pleasing under the economic circumstances, but TVNZ was facing significant constraints due to worsening conditions, chairman Sir John Anderson said.

TVNZ recently announced the axing of about 90 jobs and a cutback in programming and operating budgets in order to save $25m.

- NZPA