- TVNZ reported an $85 million loss for the year due to revenue decline and asset write-downs.
- Despite gains in streaming, the broadcaster faces more cost-cutting measures to save $30 million.
- The company plans to strengthen its digital strategy and return to profitability in the coming years.
TVNZ has announced a substantial loss of $85 million for the full year, largely driven by a $62 million write-down in asset values and a $39 million decline in revenue. The state-owned broadcaster had posted a modest $1.7 million profit the previous year but faced significant challenges in the latest financial period. The pre-tax loss, before accounting for one-off items, stood at $28.5 million, aligning with the lower end of its forecasts.
CEO Jodi O’Donnell acknowledged the progress made in growing TVNZ’s streaming audience and digital revenue. However, she emphasised the impact of a challenging advertising market and a constrained economy on the broadcaster’s financial performance. “Despite this, and our careful management of costs, our financial performance reflects a constrained economy, market disruption and a difficult advertising market,” she said.
TVNZ has sufficient cash reserves to support its digital strategy over the next three years but will not pay a dividend this year. The company plans to address its multi-year technology debt, develop a scalable IP platform to support its digital ambitions, and eventually return to profitability.
O’Donnell highlighted the company’s efforts to expand its content offerings, particularly in news, entertainment, and sport, with TVNZ+ playing a key role. Sport has become a “cornerstone” of TVNZ’s content strategy, aiming to differentiate it from other providers.
The tough market conditions are expected to persist for the remainder of the year, with further cost-cutting measures needed to save $30 million. O’Donnell stated, “We need to stabilise losses quickly and continue with a multi-year programme to strengthen our streaming technology … our focus is on maximising new ways to monetise our content so we’re in a strong position to take advantage when the market stabilises.”
TVNZ also announced that its digital platform TVNZ+ had surpassed YouTube and Netflix in New Zealand for audience reach, according to the “Where are the Audiences? 2024” survey by NZ On Air. Sport content on TVNZ+ has also seen significant growth, with nearly 910,000 accounts engaging in 15.4 million streams in the past year.
Looking ahead, TVNZ plans to continue its digital transformation, with a focus on enhancing data and AI capabilities to better meet evolving audience needs.