TVNZ has reported a first-half operating profit of $11.8 million following a difficult year marked by two rounds of restructuring, which resulted in job losses and the cancellation of several shows.
However, the company is cautioning that it may still experience an operational loss for the entire year, due in part to ongoing challenging economic conditions and the need to invest in new technology.
TVNZ published its interim half-year results today, revealing a total net profit after tax of $53.1 million for the period. This marks an increase of $69.8 million compared to the first half of the prior financial year. The positive outcome follows programming and staff reductions at the state broadcaster, which reported a loss of $85 million for the year ending June 30, 2024.
In November 2024, TVNZ announced plans to cut 50 jobs as part of a restructuring effort aimed at saving $30 million.
At the beginning of its financial year last July, TVNZ employed 601 staff, but this number is now estimated to have decreased to around 550. Two years ago, the broadcaster had approximately 730 employees.
TVNZ chief executive Jodi O’Donnell told Media Insider that the company is on track to achieve its annual savings target for the full financial year.
O’Donnell noted that approximately $15 million of this target would come from increased revenue, while the remaining $15 million would be achieved through cost reductions.
The cost-saving measures include production adjustments for Shortland Street, which has been scaled back to air three nights a week instead of five. The flagship show now receives partial funding from NZ On Air and benefits from the government’s screen production rebate. These changes are expected to save TVNZ over $10 million annually.
Looking Ahead
TVNZ has provided a full-year outlook for its operational earnings, projecting a range between a $5 million profit and a $5 million loss.
“While declines in advertising revenues have softened, challenging trading conditions are expected to continue through the second half of the financial year,” O’Donnell said.
TVNZ is in the first year of its five-year Digital+ strategy, which aims to double the 18-54 audience for TVNZ+, triple digital advertising revenue, and establish a sustainable operational model. The company reported that it has made positive advancements in all three areas.
“TVNZ+ has cemented its position as the biggest local streaming platform, with over 1.65 million New Zealanders now using the service every week.”
“We’re committed to expanding our offering with new products and services that deliver for viewers and advertisers,” said O’Donnell.