TVNZ’s recent financial results highlight the changing landscape of television viewing, with a significant drop in profit and ad revenue, but a boost in digital revenue.
In a challenging year for TVNZ, the broadcaster’s net profit after tax fell from $7.92 million to $1.72 million in the year to June 30. This decline was accompanied by a $12 million fall in ad revenue. However, despite these setbacks, TVNZ claims that its annual results demonstrate “robust financial management.”
The decline in revenue was partly offset by a 14% increase in digital revenue, indicating a shift in how people consume television content. TVNZ acknowledged this change and stated that it is focused on ensuring that digital growth outpaces any anticipated declines in traditional broadcast TV.
TVNZ’s interim chief executive, Brent McAnulty, attributed the company’s ability to outperform the market to strong audience numbers. He highlighted popular local content such as Te Matatini, new seasons of Celebrity Treasure Island, and T20 cricket internationals as resonating with viewers.
To adapt to the evolving landscape, TVNZ has plans to transition its content offering online. A major project in the coming year involves finding a new technology partner to establish and deliver a new internet protocol platform, moving the business from broadcast-based technologies to a cloud-based engine.
While TVNZ faces inflationary pressures and slower economic conditions in the future, the company remains optimistic about its financial management and its ability to navigate these challenges.
The financial struggles faced by TVNZ are not unique within the media industry. MediaWorks recently reported a $110 million impairment and a net loss of $9.7 million, while NZME reported a 76% decline in net profit after tax for the first half of the year.
Overall, TVNZ’s financial results reflect the changing habits of TV viewers, with a decline in traditional revenue but a rise in digital revenue. The company’s focus on digital growth and investment in new technologies demonstrates its commitment to adapting to the evolving media landscape.