TVNZ has reported an after-tax profit of $2.9 million for the year to July, down $2.2 million on the previous year.
The result came after revenue declined by $7.8 million to $310.7 million. While TV advertising fell slightly, this was partially offset by double digit growth in online advertising revenue.
The broadcaster said the profit fall was due to “unfavourable movement in unrealised foreign exchange”.
The company delivered EBITDAF of $24.6 million consistent with the previous year.
TVNZ CEO Kevin Kenrick says the company’s financial results reflect challenging market conditions.
“In the context of this environment, stable year-on-year earnings is a pleasing result,” Mr Kenrick said. “The standout achievements for the year have been the stellar ratings performance of our local news and entertainment content, and the growth in TVNZ OnDemand.”
TVNZ screened 19 of the top 20 TV programmes for the year including New Zealand’s most watched news and current affairs shows.
TVNZ OnDemand achieved 80% year on year growth in viewership to record 184 million video streams for the period and delivered year-on-year increases in weekly audience reach (+38%) and advertising revenue (+31%).
The TVNZ Board has previously said that it has agreed with its shareholder, the Government, to cease dividend payments due to increased investment in local content and digital capabilities. TVNZ says it has enough cash on hand to fund its planned transformation over the next three years.
“TVNZ’s competition has shifted from local to global and our future success will be less reliant on being the best in market vs. delivering content services that compare favourably with the global giants,” Mr Kenrick said.
2019 financial year snapshot
Earnings: EBITDAF of $24.6 million, consistent with FY18
Net profit: $2.9 million, down 2.2% or 43.5% year on year
Total revenue: $310.7 million, down 2.5% or $7.8 million year on year
Costs: $286.1 million, down 2.7%