TVNZ reported a net half-year of $4.8m, down from $15.2m a year ago. Photo: RNZ / Michelle Tiang
Inflation and interest rate increases were likely to mean a softer domestic advertising market for the rest of the year, the state-owned broadcaster says.
"Maintaining our balance sheet strength will be a priority so we can continue with our transition to a fully digital future," TVNZ chief executive Simon Power said.
Key numbers for the six months ended December compared with a year ago:
- Net profit $4.8m vs $15.2m
- Underlying profit $13.8m vs $29.4m
- Revenue $180.3m vs $183.7m
- Ad revenue $171.3m vs $172.1m
- Content expenses $96.7m vs $94.9m
- Other expenses $69.7m vs $59.3m
- Interim dividend - none
"TVNZ's future is undoubtedly digital," Power said.
The company's online platform, TVNZ+ attracted 1.1 million viewers a week, while digital advertising revenue grew 16 percent on the year earlier.
Power said the broadcaster would continue to invest in digital services, which was partly reflected in an increase in operational expenses to $166.4m -- $12.2m up on last year.
He said TVNZ had learned much from the proposed merger with RNZ, which was set aside by the government.
"A lot was gained through the ANZPM process, including a close look at public media and our sector more broadly. These insights will help inform TVNZ's strategy and direction," he said.
"The challenges facing our media sector have not disappeared and while ANZPM will not be the vehicle that addresses these challenges, it's clear that we need to move faster and make bold choices to continue to play an important role in New Zealanders' daily lives."