The results for the six months to December 31 2009 were heavily impacted by declines in core television advertising revenues as a result of the recession.
Television advertising revenues for the half year declined by 12.7% ($22.2 million) year on year, with total operating revenue dropping 16.6% to $186.9 million compared with the same period in the prior year.
The company is reporting an EBIT of $14.2 million compared with $27.7 million for the same period in FY2009, and an after tax profit of $8.9 million compared with $18.3 million for the prior year.
TVNZ Chief Executive Rick Ellis says that while cost reduction initiatives have offset some of the impact of revenue declines, the company must continue to seek ways to adjust its on-going cost structure to the revenue realities of the post-recession era. He says it is likely the year end result will be a loss.
“There are a number of strategic reviews underway across the business as the company looks to further reduce costs, and to make the transition from an analogue broadcaster to a digital television and media company. These will be substantially completed by the end of the fiscal year,” Mr Ellis says.
Mr Ellis says the transition of the company is going well with on-line revenues continuing to grow strongly.
“As the company repositions itself as New Zealand’s leading digital television and media company, it was pleasing to see substantial revenue growth of 174% in on-line advertising revenues.”
He says that during the half year period the company expanded its sales offering of television and on-line ‘bundles’ which have been well received by advertisers.
Television performance was strong for both TV ONE and TV2, with TV2 in particular recording its best ratings performance since 2003.
News and Current Affairs earned record success at the 2009 Qantas Media Awards, wining 11 of the 12 major awards including Best News.
The full results will be available later in March once they have been tabled in Parliament.