TVNZ has reported EBITDAF of $17.4 million and an after tax net profit of $1.4 million for the 2017 financial year.
EBITDAF is down $19.5m from the previous year largely due to an onerous contract provision and marginal year on year declines in advertising revenue.
TVNZ’s content output agreement with Disney has become loss making and it has booked a $12.4 million provision in FY2017 to recognise the forecasted future losses of this contract.
Revenue declined 2.5 per cent ($8.1 million) to $316.5 million. TVNZ has partially offset market declines in TV advertising by growing its share of the TV advertising market and increasing online revenue growth.
Excluding the onerous contract, operational expenses decreased $1.0 million to $286.7 million - including the increased costs of organisation restructuring.
TVNZ posted an after tax net profit of $1.4 million for FY2017 down $11.3 million on the previous year.
Announcing its full year results, TVNZ Chief Executive Kevin Kenrick says: "It's been a year of big challenges, big projects and a few tough decisions."
"TVNZ exceeded its goal of engaging 2 million New Zealanders per day with peak audience TV share reaching a multi-year high and TVNZ OnDemand delivering double-digit growth in audience reach. Other highlights include TVNZ.co.nz upgrades to bring together live streamed TV channels and OnDemand viewing, a refresh of TVNZ branding, and the 25 year anniversary of New Zealand’s most watched local entertainment series, Shortland Street," says Mr Kenrick.