TVNZ loses millions, says it must move faster to get in shape for digital world

TVNZ says a strong audience should at least help it overhaul its business model. Photo / Doug Sherring

TVNZ has announced an interim operating loss of $4.6 million for the last six months of 2023.

The broadcaster had been expected to deliver a “tough” interim financial result in line with the challenging media market and a previously forecast $15.6 million loss for this full financial year.

Today the company reported a loss for the six months to December 31 and an impairment of $12.2 million.

“This loss is supported by a strong balance sheet and cash reserves. This result recognises the impact declines in the local advertising market are having on the business and on the sector as a whole,” the broadcaster added.

All up, the broadcaster reported a loss of $16.7 million, when calculating net profit after tax.

“Total revenue of $155.9 million represents a 13.5 per cent decrease from last year.”

The result was delivered just two days after Warner Bros. Discovery announced it would axe Newshub and the AM programmes on TV3.

“A challenging trading environment has seen a significant reduction in television advertising revenue, while digital revenue continues to increase year-on-year,” TVNZ said today.

“Operational expenses of $155.7 million were $10.7 million lower than the same period last year, as the business adjusted its cost profile in response to falling revenue.”

TVNZ said it was spending less money on content, and making savings in marketing spend and other overheads.

“Digital generates nearly a quarter of TVNZ’s advertising revenue, and this percentage is increasing year-on-year,” TVNZ chief executive Jodi O’Donnell said today.

“TVNZ is building a future beyond broadcast television and today’s results show the need for us to make this transition faster.

“While the revenue position remains tough, TVNZ’s audience reach will help the business make this shift.

“Ultimately, we need to get our organisation into the right shape and the right size to compete in a digital world.”

Last week, O’Donnell told Media Insider there were no “sacred cows” as the state broadcaster considered all of its costs.