Digital Media division leads downbeat TVNZ result

TVNZ's profit falls a whopping 89 percent

Television New Zealand's Digital Media division had a strong year in 2009, doubling online display revenues, increasing international programme sales and generating new revenue through mobile interactivity, the company says.

However, that was not enough to put a shine on TVNZ's overall results, announced today, which were well down on last year. The state-owned broadcaster reported an after tax profit for of $2.1 million, down 89 percent on the previous period ended 30 June.

TVNZ CEO Rick Ellis, who described the environment as one of the most challenging in history for advertising funded media, said the company would still be paying a dividend of $1.47 million to the government.

“Like many advertising-reliant media companies TVNZ’s revenues were tracking well for the first half of the financial year, but after Christmas the impact of the recession on advertising spend took hold,” he said.

“The company responded rapidly and well to the situation facing us, and it’s only because of this prompt response that we have maintained a relatively strong position.”

TVNZ reported total revenue of $384.8 million and operating earnings of $10.1 million for the year. Advertising revenue was $298.4 million, a $17.1 million or 5.4 percent decline on 2008.

Ellis said the company is "cautiously optimistic" about the 2010-2011 financial years.

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