TVNZ's FY2019 results are out, showing net profit after tax down 44 percent to $2.9 million, while revenue is down 2.5 percent to $310.7 million.
TVNZ delivered EBITDA of $24.6 million, consistent to FY2018.
The TVNZ Board has agreed with the shareholder to cease dividend payments due to increased investment in local content and digital capabilities.
Breaking down its revenue and income, advertising revenue was $293.2 million, down on the $293.9 million in FY2018.
There were single-digit declines in TV advertising, partially offset by double-digit growth in online advertising revenue.
Operating expenditure improved by $7.8 million (2.7%) to $286.1 million due to a year-on-year reduction in programming costs.
In the announcement, TVNZ says the drop in profit was due to a $2.9 million unfavourable movement in unrealised foreign exchange.
Reflecting on the results, chief executive Kevin Kenrick says they’re reflective of challenging market conditions.
“In the context of this environment, stable year-on-year earnings is a pleasing result.”
He added its stand out achievements for the year have been the ratings performance of its local news and entertainment content, and the growth in TVNZ OnDemand.
TVNZ OnDemand achieved 80 percent 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 percent) and advertising revenue (+31 percent).
In the lead up to this year’s Rugby World Cup coverage in partnership with Spark Sport, TVNZ has upgraded its studio with augmented reality and video wall capabilities.