TVNZ has reported earnings of $11.8m for the six-month period to the end of 2024, substantially up on where it was a year ago.
The company also announced a total net profit after tax of $53.1m for the half-year period in its interim results, an increase of $69.8m compared to the first half of the previous financial year. This included a non-cash adjustment of $41.3m to remove costs already accounted for in the previous year’s impairment, the company said.
The results come after a horror year for the network in 2024 when it went through two rounds of restructuring, losing scores of jobs and axing shows including Sunday and Fair Go, as it delivered a loss of $28.5m for the financial year.
Today it forecast underlying operational earnings for the full 2025 financial year, which ends on June 30, would be somewhere between negative $5m and positive $5m. It put the range down to “ongoing market volatility” as well as unpredictability around its investment in technology.
Jodi O’Donnell, TVNZ’s Chief Executive, said: “This is an encouraging financial performance for the business. While the advertising market remains challenged, we’ve worked hard to shore up our revenue pipeline and reduce our costs.”
Rival media company NZME reported a full-year net loss of $16 million earlier this week, also blaming “challenges” in the market.
TVNZ’s total revenue for July-December 2024 was $152.7m, down 1.9% on the same period in 2023. Declines in television advertising revenue were described as “modest”, while digital revenue increased 15.9% year-on-year. Digital now makes up over a quarter of TVNZ’s revenue.
Cost-cutting
The company also cut $19.6 million in costs over the period through job losses and cuts in content, technology and marketing spend.
It said it is in the first year of a five-year “Digital+ strategy” with a focus on content, advertising and technology.
“Audiences are changing, and we have a plan in place to meet their needs today and into the future,” O’Donnell said. “We’re focused on leveraging our strength in television, while investing to become a digital-first business. We’re committed to expanding our offering with new products and services that deliver for viewers and advertisers.”
While advertising revenue declines have “softened”, the company expects “challenging trading conditions” to continue for the rest of the financial year.
As well as the forecast earnings of between -$5m and $5m for the full year, TVNZ said there may also be a non-cash impairment, “acknowledging the impact TVNZ’s current forecasted future earnings will have on its asset valuation”.
TVNZ’s interim accounts will be available here in early March.
